Zillow Group (NASDAQ:Z) Reaches New 12-Month High - Should You Buy?

Zillow Group, Inc. (NASDAQ:Z) achieved a new 52-week high during trading on Friday, reaching a peak price of $86.88. The stock has recently seen considerable activity, last trading at $84.86 with a trading volume of 969,397 shares. This is a notable increase from its previous closing price of $85.45.

Analyst Ratings Updates

In recent weeks, several financial analysts have provided updates on Zillow Group’s stock. Morgan Stanley has revised its price target for Zillow Group from $46.00 to $60.00 and issued an "equal weight" rating as of October 2nd. Also, Craig Hallum upgraded the stock to a "strong-buy" on August 8th. Wedbush moved Zillow Group from a "neutral" to an "outperform" rating, further increasing their target price from $50.00 to $80.00 on September 16th. Deutsche Bank also raised its target from $55.00 to $60.00, giving a "buy" rating on August 9th. Meanwhile, Needham & Company LLC reiterated a "hold" rating as of November 7th. Currently, four analysts rate the stock as a hold, four suggest a buy, and two indicate a strong buy. The average rating stands as a "Moderate Buy" with a target price of $70.33 according to MarketBeat.

Stock Performance Overview

Zillow Group's performance can be assessed by observing its moving averages; the stock's 50-day moving average is $67.44 and its 200-day moving average is $55.51. The company’s market capitalization is approximately $19.78 billion. Financially, Zillow Group has a debt-to-equity ratio of 0.11 and both a current and quick ratio of 3.13. However, its price-to-earnings (P/E) ratio is quite low at -149.91, indicating operational challenges. The stock has a beta of 1.95, suggesting higher volatility compared to the broader market.

Insider Trading Activity

Recent insider trading activity includes CFO Jeremy Hofmann selling 7,175 shares on November 27th, at an average price of $85.36, amounting to $612,458. Following this sale, he retains ownership of 99,362 shares worth approximately $8.48 million, reflecting a 6.73% decrease in his holding. Director Amy Bohutinsky also sold 20,625 shares on September 18th for $1.39 million at an average price of $67.23, resulting in a 78.49% reduction in her ownership. Over the last quarter, insiders have sold a total of 160,439 shares valued at $11.58 million. Insiders own about 23.76% of Zillow Group's stock.

Hedge Fund Activity

Institutional investment trends reveal increased interest in Zillow Group. Synovus Financial Corp purchased shares worth $311,000 in the third quarter, while Chiron Investment Management added about $1.29 million worth of new shares. Synergy Financial Group and Groupama Asset Management also made purchases, with the latter acquiring a substantial position valued at $83.01 million. Nomura Asset Management increased its stake by 15.1%, owning 45,760 shares worth about $2.92 million after acquiring additional shares. Institutions collectively hold approximately 71.01% of the stock, indicating strong confidence in the company’s future.

Company Background

Zillow Group, Inc. operates various real estate brands through mobile applications and websites across the United States. Their services include marketplaces for premier agents and rentals, new construction, and advertising solutions. They also offer mortgage originations and related services, along with title and escrow services to clients.

Final Thoughts

Before making investment decisions regarding Zillow Group, investors should consider the overall market sentiment and analyst recommendations. While several analysts advocate a "Moderate Buy" stance, other investment options may offer potentially better returns based on current evaluations.

Zillow, Stocks, Investments