Zillow Group (Z) Stock Sinks to 52-Week Low, Is It a Buy?

TLDR

• Zillow Group stock touched a fresh 52-week low of $28.89 on Wednesday, down from a prior close of $30.95.
• The stock sits well below its 50-day ($33.64) and 200-day ($36.93) moving averages.
• Wall Street still rates the stock a “Moderate Buy” with an average price target of $61.29.
• Q2 earnings beat estimates: $0.52 EPS versus $0.45 expected, and revenue of $772 million versus $758 million forecast.
• Insiders, including the CFO, sold stock worth roughly $1.32 million over the past three months, mostly to cover tax bills.

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Zillow Group stock fell to a new 52-week low this week, trading as low as $28.89 before settling near $28.91. That’s a sharp drop from Tuesday’s close of $30.95.

Zillow Group, Inc. Class A, ZG

The stock has now lost more than 61% of its value over the past year. It trades well under both its 50-day average of $33.64 and its 200-day average of $36.93.

Trading volume was heavy, with nearly 2.9 million shares changing hands on the day of the low. That’s a sign investors are paying close attention to the pullback.

Despite the drop, Wall Street hasn’t turned fully bearish. The consensus rating remains “Moderate Buy,” built from two Strong Buy, five Buy, eight Hold, and one Sell rating.

The average analyst price target sits at $61.29, more than double the current trading price. That gap shows a real split between where the stock trades and where analysts think it should be.

Analysts Are Trimming Targets

Several firms have cut their outlook on Zillow in recent weeks. Wall Street Zen moved the stock from “buy” to “hold” on August 8.

Royal Bank of Canada kept an “outperform” rating but slashed its price target from $95 to $70. Jefferies did something similar, cutting its target from $75 to $60 while keeping a “buy” rating.

Keefe, Bruyette & Woods lowered its target from $37 to $34 and rates the stock “market perform.” Evercore went further, downgrading Zillow from “strong-buy” to “hold” back on August 6.

Bernstein also downgraded the stock to “Market Perform,” pointing to revenue concerns after the second quarter. Evercore ISI separately cited a soft outlook for the second half of 2026.

The Earnings Picture

The stock’s slide comes despite a solid earnings report. Zillow posted $0.52 in earnings per share for the quarter, topping the $0.45 estimate by seven cents.

Revenue climbed 18% year-over-year to $772 million, ahead of the $758 million analysts expected. Still, the company posted a net loss of $4 million, or -$0.02 per share.

That compares to a small net income the year before. Net margin came in at 1.96%, with return on equity at 2.32%.

Analysts expect the company to post $0.89 in earnings per share for the full fiscal year. Benchmark analyst Daniel Kurnos pointed to Zillow’s pattern of beating its own guidance and Street estimates on revenue and EBITDA.

Insider selling has also drawn attention. CFO Jeremy Hofmann sold 5,661 units of stock on August 17 at an average price of $34.18, worth about $193,493.

That sale cut his position by 8.74%. Insider Errol G. Samuelson sold 3,154 units on August 13 at $34.24 each, a total of about $107,993.

Over the past three months, insiders have sold stock worth roughly $1.32 million. The sales were made under pre-arranged trading plans to cover tax withholding on vesting awards.

Insiders still own 23.76% of the company. Institutional investors and hedge funds control 71.01% of the stock, with several firms adding to their positions in recent quarters, including L1 Capital Pty Ltd, which grew its stake by over 24,000% in the fourth quarter.