Zillow Group (NASDAQ:Z) Reaches New 1-Year High - Analyzing the Investment Opportunity

Zillow Group, Inc. (NASDAQ:Z) achieved a remarkable milestone on Thursday, reaching a new 52-week high. The stock soared to a high of $87.17 and was last seen trading at $86.94, with a total trading volume of 57,776 shares. Prior to this surge, the shares closed at $85.90.

Wall Street Analysts Predict Future Growth

Many financial institutions have shared their perspectives on Zillow Group. Recently, Morgan Stanley raised its price target for Zillow Group shares from $60.00 to $75.00 and assigned the company an "equal weight" rating in a report dated January 13th. KeyCorp upgraded Zillow Group from a "hold" to a "strong-buy" rating in their note on Sunday. Additionally, Bank of America increased their target price from $54.00 to $71.00 while maintaining a "neutral" rating on October 18th. Needham & Company LLC reiterated a "hold" rating in a report from November 7th. Meanwhile, Jefferies Financial Group raised their price target from $80.00 to $90.00 and issued a "buy" rating on October 22nd. Currently, the consensus rating from MarketBeat indicates a "Moderate Buy" for Zillow Group, with an average target price of $72.83.

Zillow Group's Stock Performance

The company's trading performance recently saw a slight increase of 0.4%. As for key financial metrics, Zillow Group holds a quick ratio and current ratio of 3.13, alongside a low debt-to-equity ratio of 0.11. The company's market capitalization stands at approximately $20.14 billion, with a PE ratio of -151.44 and a price-to-earnings-growth ratio of 11.41. Moreover, the stock's 50-day moving average is $78.60, while the 200-day moving average is $66.88.

Insider Activity Indicates Investor Sentiment

Recent insider transactions have piqued interest among investors. On November 29th, insider Dan Spaulding sold 4,565 shares of Zillow Group, with an average sale price of $86.22, totaling $393,594.30. After this transaction, Spaulding still holds 58,217 shares valued at approximately $5,019,469.74, indicating a 7.27% decrease in ownership. The transaction details can be found in SEC filings. In a separate event, CTO David A. Beitel sold 56,750 shares on November 15th at an average price of $72.39, amounting to $4,108,132.50. Following this sale, Beitel retained just 92 shares valued at around $6,659.88, representing a staggering 99.84% drop in ownership. Over the past ninety days, insiders have sold a total of 164,689 shares worth $12,520,379, with corporate insiders owning approximately 23.76% of the stock.

Institutional Changes Reflect Market Confidence

Several institutional investors have recently adjusted their positions in Zillow Group. Creative Planning increased its stake by 29.4% during the second quarter, acquiring an additional 4,217 shares, bringing its total holdings to 18,581 shares valued at $862,000. Sanctuary Advisors LLC also entered the scene, purchasing a stake worth $319,000. Handelsbanken Fonder AB elevated its holdings by 26.4% in the third quarter, owning 45,500 shares with a significant valuation of $2,905,000 after acquiring an extra 9,500 shares. Atomi Financial Group Inc. maintained a similar trend, boosting its stake by 16.3% in the third quarter, now possessing 13,936 shares worth $890,000 after buying an additional 1,951 shares. Finally, Udine Wealth Management Inc. also made a new investment in Zillow Group during the same quarter, estimated at $879,000. Overall, about 71.01% of Zillow Group’s stock is held by institutional investors.

About Zillow Group

Zillow Group, Inc. is known for managing real estate brands, providing mobile applications, and hosting websites throughout the United States. Their offerings encompass premier agent and rental marketplaces, new construction marketplaces, advertising services, technology solutions, as well as services related to mortgage originations, title, and escrow services.

Final Thoughts on Investing in Zillow Group

Before potentially investing in Zillow Group, it is essential to consider the current market indicators and analyst ratings. While the stock holds a "Moderate Buy" rating, there are suggestions from top analysts that better investment opportunities might exist in alternative stocks. It’s prudent for investors to conduct thorough research and evaluate all options carefully before making any decisions.

Zillow, Stocks, Investment