Zillow Group (NASDAQ:ZG) Sets New 12-Month Low Following Weak Earnings

Zillow Group, Inc. (NASDAQ:ZG) shares hit a new 52-week low during trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $51.10 and last traded at $48.9440, with a volume of 13577 shares changing hands. The stock had previously closed at $54.42.

The technology company reported $0.39 earnings per share (EPS) 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 the consensus estimate of $650.40 million. Zillow Group had a net margin of 0.89% and a return on equity of 0.56%. The business’s revenue was up 18.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.27 earnings per share.

Key Zillow Group News

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

• Positive Sentiment: Zillow beat top-line expectations and issued an upbeat near-term revenue outlook — Q4 revenue of $654M (+18% YoY) topped estimates, and management guided Q1 revenue roughly $700–710M, signaling continued growth driven by rentals and mortgage services. Article Title
• Positive Sentiment: Piper Sandler reaffirmed an overweight rating (with a $70 PT), and some firms (e.g., Bernstein) remain constructive — these show pockets of analyst support that could limit downside if guidance execution stays intact. Article Title
• Neutral Sentiment: The company swung to a small GAAP profit in Q4 (vs. a loss a year earlier), indicating improving operating performance, but the profit is modest and comes amid one-time items and mix effects. Article Title
• Negative Sentiment: Adjusted EPS missed estimates (Q4 adj. EPS $0.39 vs. $0.42 expected), and the company reported margin pressure from higher costs — a direct catalyst for the sell-off as investors penalize profit misses. Article Title
• Negative Sentiment: Analysts have trimmed forecasts and multiple price targets were cut (Barclays, Wells Fargo, Cantor Fitzgerald among others), signaling lowered expectations and putting near-term downward pressure on the stock. Article Title
• Negative Sentiment: Legal risk: Zillow faces a growing slate of lawsuits from competitors and consumers across its businesses — this litigation cloud raises uncertainty around potential costs and distraction for management. Article Title
• Negative Sentiment: Sector concerns: analysts and commentators flagged AI-driven disruption squeezing real-estate services names, adding a structural headwind to sentiment for Zillow and peers. Article Title

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Piper Sandler reiterated an “overweight” rating and issued a $70.00 target price (down from $85.00) on shares of Zillow Group in a report on Wednesday. Benchmark restated a “buy” rating on shares of Zillow Group in a research note on Wednesday. Mizuho set a $65.00 price objective on shares of Zillow Group in a research note on Wednesday. UBS Group set a $80.00 target price on Zillow Group in a report on Wednesday. Finally, KeyCorp decreased their price objective on shares of Zillow Group from $90.00 to $75.00 and set an “overweight” rating for the company in a research report on Friday, February 6th. Fifteen investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Zillow Group currently has an average rating of “Moderate Buy” and a consensus target price of $81.00.

Insider Buying and Selling

In other news, CEO Jeremy Wacksman sold 10,855 shares of the company’s stock in a transaction that occurred on Friday, November 14th. The stock was sold at an average price of $69.99, for a total value of $759,741.45. Following the transaction, the chief executive officer owned 134,712 shares of the company’s stock, valued at approximately $9,428,492.88. This represents a 7.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Dan Spaulding sold 5,455 shares of the business’s stock in a transaction on Friday, November 14th. The shares were sold at an average price of $69.40, for a total value of $378,577.00. Following the completion of the sale, the insider owned 50,342 shares of the company’s stock, valued at $3,493,734.80. This trade represents a 9.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 28,103 shares of company stock valued at $1,956,109 in the last ninety days. 17.14% of the stock is currently owned by company insiders.

Institutional Trading of Zillow Group

Institutional investors and hedge funds have recently made changes to their positions in the company. Norges Bank bought a new stake in Zillow Group during the 2nd quarter valued at $159,770,000. MFG Wealth Management Inc. bought a new position in shares of Zillow Group during the 3rd quarter worth approximately $1,493,000. Y Intercept Hong Kong Ltd purchased a new position in Zillow Group in the third quarter worth $1,443,000. ABC Arbitrage SA boosted its holdings in shares of Zillow Group by 390.1% in the 2nd quarter. ABC Arbitrage SA now owns 31,227 shares of the technology company’s stock worth $2,139,000 after buying an additional 24,856 shares during the last quarter. Finally, TD Asset Management Inc bought a new position in shares of Zillow Group during the 2nd quarter valued at approximately $262,000. Institutional investors own 20.32% of the company’s stock.

Zillow Group Stock Down 17.1%

The firm has a market capitalization of $10.92 billion, a PE ratio of 501.17, a P/E/G ratio of 3.16 and a beta of 2.04. The stock has a 50-day simple moving average of $65.97 and a 200-day simple moving average of $72.26.

About Zillow Group

Zillow Group (NASDAQ:ZG) is a U.S.-based online real estate marketplace that connects consumers, real estate professionals and mortgage lenders through a suite of digital products and advertising services. Founded in 2006 by Rich Barton and Lloyd Frink and headquartered in Seattle, Washington, the company operates a portfolio of consumer-facing brands and tools designed to simplify home search, rental discovery, valuation and mortgage shopping.

Zillow’s core products include its consumer websites and mobile apps that list homes for sale and rent, the Zestimate automated home value estimate, and marketplaces that connect buyers and renters with agents and lenders.