Zillow Group (NASDAQ:Z) Hits New 12-Month High - Is It Time to Buy?

Zillow Group, Inc. (NASDAQ:Z) reached a new 52-week high on Friday, with the stock connecting at a peak price of $86.88 before closing at $84.86. The trading volume during the day was significant, totaling 969,397 shares exchanged. For context, the previous closing price was $85.45.

Analyst Ratings Overview

Research analysts have recently provided updated insights on Zillow Group's stock. Notably, Morgan Stanley raised their price target for the company from $46.00 to $60.00, maintaining an "equal weight" rating as of October 2nd. On August 8th, Craig Hallum upgraded Zillow Group to a "strong-buy" rating. In another positive move, Wedbush upgraded its recommendation from "neutral" to "outperform," also increasing their price target from $50.00 to $80.00 on September 16th. Deutsche Bank also raised its price target from $55.00 to $60.00, designating the stock with a "buy" rating on August 9th. Meanwhile, Needham & Company reaffirmed a "hold" rating on November 7th. The overall assessment from MarketBeat shows an average rating of "Moderate Buy" and a consensus target price of $70.33, based on evaluations from ten analysts, where four took a hold position, four recommended a buy, and two suggested a strong buy.

Zillow Group Stock Analysis

Looking at Zillow Group's financial metrics, the stock has a 50-day moving average price of $67.44 and a 200-day moving average of $55.51. The company's debt-to-equity ratio stands at a low 0.11, indicating a solid capital structure, along with a current and quick ratio both at 3.13. Zillow Group boasts a market capitalization of approximately $19.78 billion, although its price-to-earnings ratio is reported at -149.91, and its beta is 1.95, showing that it is more volatile than the market.

Insider Trading Activity

In a recent development, CFO Jeremy Hofmann sold 7,175 shares on November 27th at an average price of $85.36, accumulating $612,458 from the sale. Post-transaction, Hofmann retains ownership of 99,362 shares worth about $8.48 million, reflecting a 6.73% decrease in his shareholding. Additionally, Director Amy Bohutinsky sold 20,625 shares on September 18th at an average price of $67.23, bringing in a total of $1.39 million. After this transaction, she owns 5,652 shares valued at approximately $379,983, which represents a substantial 78.49% reduction in her holdings. Over the last quarter, insiders have sold 160,439 shares valued at approximately $11.58 million, and currently, insiders possess 23.76% of Zillow Group's shares.

Institutional Investors' Activity

Several hedge funds have increased their stakes or established new positions in Zillow Group recently. For instance, Synovus Financial Corp acquired a new position worth about $311,000 in the third quarter, while Chiron Investment Management LLC invested roughly $1.29 million. Synergy Financial Group LTD and Groupama Asset Management also made new entries, investing $223,000 and $83 million, respectively. Moreover, Nomura Asset Management boosted its holdings by 15.1%, now owning 45,760 shares valued at around $2.92 million. Institutional investors hold about 71.01% of Zillow Group's stock.

About Zillow Group

Zillow Group, Inc. operates various real estate brands across mobile applications and websites in the U.S. Its services include premier agent and rental marketplaces, advertising solutions, and mortgage origination services among others, positioning it as a key player in the real estate technology space.

Investment Considerations

Before deciding to invest in Zillow Group, it may be useful to consider insights from several leading financial analysts. Although Zillow Group has a "Moderate Buy" rating, it’s important to note that there are other stocks that some analysts regard as better investment options. Conducting thorough research and assessing the current market conditions will be vital for any potential investor.

Zillow, Stocks, Trading