William Blair analyst Stephen Sheldon has maintained their neutral stance on Z stock, giving a Hold rating on July 23.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Stephen Sheldon has given his Hold rating due to a combination of factors that include Zillow Group’s recent financial performance and future outlook. The company’s second-quarter revenue slightly exceeded expectations, driven by strong performance in residential and mortgage segments, though rentals and other revenue were in line with estimates. However, the gross profit fell short of expectations due to a decrease in gross margin, which was attributed to the Redfin partnership.
Despite a modest increase in adjusted EBITDA, this was the first time in a while that Zillow’s profit did not significantly exceed its guidance range. Management’s updated guidance suggests midteens revenue growth for the full year, with expectations of profitability on a GAAP basis. While rentals growth is projected to remain strong, a significant portion of this growth is expected to come from the Redfin partnership, indicating potential deceleration in underlying growth. These mixed signals contribute to the Hold rating, as the company shows potential but also faces challenges that need to be addressed.
In another report released on July 23, Gordon Haskett Capital Corporation also maintained a Hold rating on the stock with a $75.00 price target.
Based on the recent corporate insider activity of 106 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of Z in relation to earlier this year.