Zillow Group (NASDAQ:Z) Hits New 52-Week Low Following Weak Earnings

Zillow Group, Inc. (NASDAQ:Z) reached a new 52-week low during trading on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $51.85 and last traded at $49.5040, with a volume of 36598 shares traded. The stock had previously closed at $54.71.

The financial services provider reported $0.39 earnings per share for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.03). The company had revenue of $654.00 million during the quarter, compared to analysts’ expectations of $650.40 million. Zillow Group had a return on equity of 0.56% and a net margin of 0.89%.

Trending Headlines about Zillow Group

Here are the key news stories impacting Zillow Group this week:

• Positive Sentiment: Revenue and growth: Zillow delivered Q4 revenue of $654M (up ~18% year‑over‑year) and growth in its “for sale” and rentals segments, which supports top‑line momentum. GeekWire: Zillow tops estimates
• Positive Sentiment: Return to GAAP profitability: Zillow reported a small GAAP profit ($3M) in Q4 versus a loss a year earlier, a positive step toward sustainable earnings. WSJ: Zillow Q4 profit
• Positive Sentiment: Upside revenue guide for Q1: Management set Q1 revenue guidance around $700M–$710M, above consensus, signaling continued revenue momentum into 2026. Company press release / guidance
• Neutral Sentiment: Analyst stance mixed: Some research shops are keeping neutral/hold views (Needham reaffirmed a hold), reflecting cautious optimism but not conviction to buy. Benzinga: analyst note
• Neutral Sentiment: Investor call / details: The Q4 earnings call and transcript contain mixed detail on margins, AI investments and segment performance that leaves room for debate on near‑term profitability. Earnings call transcript
• Negative Sentiment: Legal overhang: Zillow faces multiple lawsuits from competitors and consumers targeting different parts of its business — a growing litigation risk that increases uncertainty and potential costs. MSN: litigation story Barron’s: litigation coverage
• Negative Sentiment: EPS miss and profitability concerns: Adjusted EPS missed estimates (reported ~$0.39 vs. ~$0.42 expected), and some commentary and modeling items (soft EBITDA outlook) prompted analysts to trim forecasts and lower price targets. Benzinga: analysts cut forecasts Seeking Alpha: soft EBITDA guidance KBW lowers price target
• Negative Sentiment: Valuation & technical pressure: Z carries a very high trailing P/E and is trading well below its 50‑ and 200‑day moving averages; today’s heavy volume suggests investors are de‑risking into the headlines.

Analyst Ratings Changes

Z has been the topic of several recent analyst reports. Mizuho cut Zillow Group from a “strong-buy” rating to a “hold” rating in a research note on Thursday, January 8th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Zillow Group in a research report on Wednesday, January 21st. Barclays upgraded shares of Zillow Group from a “strong sell” rating to a “hold” rating in a research note on Thursday, January 29th. Needham & Company LLC reiterated a “hold” rating on shares of Zillow Group in a research note on Wednesday. Finally, JPMorgan Chase & Co. boosted their target price on shares of Zillow Group from $94.00 to $95.00 and gave the stock an “overweight” rating in a research report on Friday, October 31st. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $90.60.

Insider Buying and Selling

In other news, Director Erik C. Blachford sold 965 shares of the stock in a transaction dated Wednesday, December 3rd. The shares were sold at an average price of $72.51, for a total value of $69,972.15. Following the completion of the sale, the director directly owned 33,543 shares in the company, valued at $2,432,202.93. This represents a 2.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, General Counsel Bradley D. Owens sold 2,722 shares of the business’s stock in a transaction dated Wednesday, November 19th. The stock was sold at an average price of $67.41, for a total transaction of $183,490.02. Following the transaction, the general counsel owned 37,974 shares in the company, valued at $2,559,827.34. The trade was a 6.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 28,103 shares of company stock worth $1,956,109 in the last ninety days. Company insiders own 25.03% of the company’s stock.

Institutional Investors Weigh In On Zillow Group

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Root Financial Partners LLC acquired a new stake in Zillow Group in the 3rd quarter valued at approximately $27,000. Pilgrim Partners Asia Pte Ltd purchased a new stake in shares of Zillow Group in the 3rd quarter valued at $29,000. V Square Quantitative Management LLC acquired a new position in Zillow Group during the 4th quarter worth about $28,000. Cullen Frost Bankers Inc. boosted its holdings in Zillow Group by 58.6% during the 3rd quarter. Cullen Frost Bankers Inc. now owns 441 shares of the financial services provider’s stock valued at $34,000 after acquiring an additional 163 shares during the period. Finally, SBI Securities Co. Ltd. grew its position in Zillow Group by 58.2% in the 2nd quarter. SBI Securities Co. Ltd. now owns 503 shares of the financial services provider’s stock valued at $35,000 after acquiring an additional 185 shares in the last quarter. 71.01% of the stock is owned by hedge funds and other institutional investors.

Zillow Group Price Performance

The company has a market capitalization of $11.05 billion, a PE ratio of 507.39, a price-to-earnings-growth ratio of 3.17 and a beta of 2.08. The stock’s 50 day simple moving average is $66.86 and its 200-day simple moving average is $74.38.

About Zillow Group

Zillow Group, Inc is an online real estate marketplace company that operates a portfolio of consumer-facing websites and mobile apps designed to connect buyers, sellers, renters, homeowners and real estate professionals. The company’s platforms aggregate property listings, rental listings, and related information to help users search for homes, estimate property values and connect with agents and service providers. Zillow generates revenue primarily through advertising and lead-generation services for real estate professionals, property managers and mortgage lenders.

Key products and services include the Zillow and Trulia consumer websites and apps, which provide searchable listings, photos, neighborhood data and the company’s automated home valuation tool known as the “Zestimate.” Zillow also offers a rentals marketplace, a mortgage marketplace and tools for home buying and selling such as Zillow Premier Agent for agent advertising and leads, as well as ancillary services designed to support transactions, including closing and title-related offerings.