Key Takeaways
- Zillow Group shares plunged to a 52-week low of $28.89 on Wednesday, falling from the previous day’s closing price of $30.95.
- The stock trades significantly beneath both its 50-day moving average ($33.64) and 200-day moving average ($36.93).
- Analysts maintain a “Moderate Buy” consensus rating with an average price target of $61.29.
- Second-quarter results exceeded expectations: EPS of $0.52 versus the anticipated $0.45, with revenue reaching $772 million against a $758 million forecast.
- Company executives sold approximately $1.32 million in shares over the last three months, primarily for tax obligations.
Zillow Group shares tumbled to a new 52-week bottom this week, reaching an intraday low of $28.89 before closing around $28.91. This represents a significant decline from the prior session’s close at $30.95.
Zillow Group, Inc. Class A, ZG
The real estate platform’s stock has plummeted more than 61% from its peak over the previous 12 months. Shares currently trade substantially below both the 50-day moving average of $33.64 and the 200-day moving average of $36.93.
Volume was robust during the selloff, with approximately 2.9 million shares traded on the day the stock reached its low. The elevated activity indicates heightened investor interest amid the downturn.
However, Wall Street analysts haven’t completely soured on the stock. The overall rating remains “Moderate Buy,” comprising two Strong Buy ratings, five Buy ratings, eight Hold ratings, and a single Sell rating.
Analysts’ average price target stands at $61.29, representing more than a 100% premium to current levels. This substantial disconnect highlights the divergence between market sentiment and analyst expectations.
Wall Street Firms Lower Price Expectations
Multiple research firms have revised their forecasts for Zillow stock throughout recent weeks. Wall Street Zen downgraded the shares from “buy” to “hold” on August 8.
Royal Bank of Canada maintained its “outperform” stance but reduced its price target dramatically from $95 down to $70. Similarly, Jefferies trimmed its target from $75 to $60 while preserving its “buy” recommendation.
Keefe, Bruyette & Woods decreased its target from $37 to $34 with a “market perform” rating. Evercore made a more significant move, downgrading Zillow from “strong-buy” to “hold” on August 6.
Bernstein joined the downgrade trend, moving the stock to “Market Perform” while expressing concerns about revenue growth following second-quarter results. Evercore ISI separately highlighted weakness in the outlook for late 2026.
Strong Quarterly Performance
Interestingly, the stock’s decline occurred even after the company delivered better-than-expected quarterly results. Zillow reported earnings per share of $0.52 for the quarter, exceeding the consensus estimate of $0.45 by seven cents.
Revenue jumped 18% on a year-over-year basis to $772 million, surpassing the analyst projection of $758 million. However, the company recorded a net loss of $4 million, translating to -$0.02 per share.
This contrasts with modest profitability in the comparable period last year. The company’s net margin registered at 1.96%, while return on equity measured 2.32%.
Wall Street forecasts full-year earnings per share of $0.89. Benchmark analyst Daniel Kurnos noted Zillow’s consistent track record of surpassing both internal guidance and Street estimates for revenue and EBITDA.
Executive stock sales have also caught investors’ attention. CFO Jeremy Hofmann divested 5,661 shares on August 17 at an average price of $34.18, generating proceeds of approximately $193,493.
This transaction reduced his holdings by 8.74%. Additionally, insider Errol G. Samuelson sold 3,154 shares on August 13 at $34.24 per share, totaling roughly $107,993.
During the past quarter, company insiders have sold shares valued at approximately $1.32 million. These transactions occurred through pre-established trading plans designed to satisfy tax withholding requirements on vested equity awards.
Company insiders collectively maintain ownership of 23.76% of Zillow Group. Institutional investors and hedge funds hold 71.01% of outstanding shares, with numerous firms increasing their positions during recent quarters, including L1 Capital Pty Ltd, which expanded its stake by more than 24,000% in the fourth quarter.
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