Can Zillow Group Inc. (NASDAQ:Z) Offer Investors Safety?

Zillow Group Inc. (NASDAQ:Z) Relative Strength Index (RSI) is 71.70, with weekly volatility at 6.48% and ATR at 6.26. The Z stock’s 52-week price range has touched low of $20.04 and a $124.64 high. Intraday shares traded counted 3.75 million, which was -16.31% lower than its 30-day average trading volume of 3.22M. Its shares traded higher over the last trading session, gaining 4.44% on 12/11/20. The shares fell to a low of $120.97 before closing at $126.47. Z’s previous close was $121.09 while the outstanding shares total 165.89M.

Investors have identified the Internet Content & Information company Zillow Group Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $20.98 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Zillow Group Inc. (Z) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For Z, the company has in raw cash 1.95 billion on their books with 232.4 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 4.31 billion total, with 466.17 million as their total liabilities.

Z were able to record 677.74 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 717.98 million. In cash movements, the company had a total of 750.16 million as operating cash flow.

Potential earnings growth for Zillow Group Inc. (Z)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Zillow Group Inc. recorded a total of 656.69 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -13.48% coming in sequential stages and their sales for the Q3 2020 quarter reducing by -17.0%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 216.22 million trying to sell their products during the last quarter, with the result yielding a gross income of 440.47 million. This allows shareholders to hold on to 165.89M with the recently reported earning now reading 0.17 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (0.16 cents a share).

Is the stock of Z attractive?

In related news, Chief Corp. Relations Officer, Lyon Dawn sold 57,500 shares of the company’s stock in a transaction that recorded on Dec 07. The sale was performed at an average price of 110.08, for a total value of 6,329,710. As the sale deal closes, the Chief Technology Officer, Beitel David A. now sold 9,150 shares of the company’s stock, valued at 960,384. Also, President, Zillow, Wacksman Jeremy sold 1,536 shares of the company’s stock in a deal that was recorded on Dec 01. The shares were price at an average price of 109.53 per share, with a total market value of 168,233. Following this completion of acquisition, the Director, BLACHFORD ERIK C now holds 74,380 shares of the company’s stock, valued at 7,976,025. In the last 6 months, insiders have changed their ownership in shares of company stock by 11.18%.

11 out of 22 analysts covering the stock have rated it a Buy, while 8 have maintained a Hold recommendation on Zillow Group Inc.. 1 analysts has assigned a Sell rating on the Z stock. The 12-month mean consensus price target for the company’s shares has been set at $122.35.

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