Key Takeaways
- Zillow Group shares dropped to a 52-week low of $28.89 on Wednesday, declining from the previous day’s close 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 with a $61.29 average target price.
- Second quarter results exceeded forecasts: EPS of $0.52 versus consensus of $0.45, with revenues reaching $772 million against projected $758 million.
- Company executives offloaded approximately $1.32 million in shares during the past three months, primarily for tax obligations.
Zillow Group shares slumped to a fresh 52-week low during Wednesday’s trading session, bottoming at $28.89 before closing around $28.91. This represents a significant decline from the prior session’s finish at $30.95.
Zillow Group, Inc. Class A, ZG
Over the last twelve months, the stock has plummeted more than 61%. Currently, shares are trading substantially below both the 50-day moving average of $33.64 and the 200-day moving average of $36.93.
Volume spiked during the selloff, with approximately 2.9 million shares traded on the day the stock hit its low. This elevated activity suggests heightened investor interest amid the downturn.
Interestingly, Wall Street sentiment hasn’t completely soured. Analysts collectively rate the stock as a “Moderate Buy,” based on two Strong Buy ratings, five Buy ratings, eight Hold ratings, and one Sell rating.
The mean price target among analysts stands at $61.29, representing more than a 100% premium to current levels. This substantial gap highlights the disconnect between market valuation and analyst expectations.
Price Target Reductions Continue
Multiple research firms have revised their Zillow projections downward in recent sessions. Wall Street Zen downgraded the stock from “buy” to “hold” on August 8.
Royal Bank of Canada maintained its “outperform” stance but reduced its price objective from $95 down to $70. Similarly, Jefferies trimmed its target from $75 to $60 while preserving its “buy” recommendation.
Keefe, Bruyette & Woods adjusted its target downward from $37 to $34, maintaining a “market perform” rating. Evercore took a more cautious approach, downgrading Zillow from “strong-buy” to “hold” on August 6.
Bernstein also moved to a “Market Perform” rating, expressing concerns about revenue trends following the second quarter results. Evercore ISI separately highlighted a weaker outlook for the latter half of 2026.
Strong Quarterly Performance
The stock’s decline appears counterintuitive given the company’s recent quarterly performance. Zillow delivered earnings per share of $0.52, surpassing Wall Street’s $0.45 estimate by seven cents.
Revenues increased 18% on a year-over-year basis to $772 million, exceeding analyst projections of $758 million. However, the company reported a net loss of $4 million, translating to -$0.02 per share.
This contrasts with a modest profit in the prior year period. The company’s net margin registered at 1.96%, while return on equity measured 2.32%.
Wall Street projects full-year earnings of $0.89 per share. Benchmark analyst Daniel Kurnos highlighted Zillow’s consistent track record of exceeding both internal guidance and analyst forecasts for revenue and EBITDA metrics.
Executive stock sales have also captured market attention. CFO Jeremy Hofmann divested 5,661 shares on August 17 at an average of $34.18, generating approximately $193,493 in proceeds.
This transaction reduced his holdings by 8.74%. Director Errol G. Samuelson sold 3,154 shares on August 13 at $34.24 apiece, totaling roughly $107,993.
During the last quarter, company insiders have sold shares valued at approximately $1.32 million. These transactions were executed through predetermined trading plans designed to satisfy tax withholding requirements on equity compensation.
Company insiders maintain ownership of 23.76% of outstanding shares. Institutional investors and hedge funds hold 71.01% of the stock, with numerous firms expanding their positions recently, including L1 Capital Pty Ltd, which increased its stake by more than 24,000% during the fourth quarter.
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