Exploring Zillow Group, Inc. (ZG) Investor Profile: Who’s Buying and Why?

You're looking at Zillow Group, Inc. (ZG) and asking, who is actually holding this stock right now, and what are the world's largest money managers seeing that you might be missing? Honestly, the investor profile is defintely telling a story of transition, moving from pure growth speculation to a focus on the company's 'housing super app' execution.

The big money-institutional investors-still hold a massive stake, but their recent moves are nuanced. For example, as of September 30, 2025, Vanguard Group Inc. held over 7 million shares of ZG Class A, while BlackRock, Inc. held over 2.4 million shares, and both showed slight decreases, suggesting some profit-taking or rebalancing. But here's the quick math: Zillow Group just reported Q3 2025 revenue of $676 million, up a strong 16% year-over-year, and even posted $10 million in GAAP net income, showing the pivot to profitability is real. That 41% year-over-year jump in Rentals revenue to $174 million is what's catching the eye of the buyers, signaling a powerful new revenue stream. So, are the institutions selling because they've lost faith, or are they simply rotating capital as Zillow Group shifts from a market disruptor to a profitable platform? Let's unpack the precise holdings and the strategic 'why' behind the buys and sells.

Who Invests in Zillow Group, Inc. (ZG) and Why?

If you're looking at Zillow Group, Inc. (ZG), you're defintely wondering who the big money is and what their play is. The direct takeaway is that ZG is overwhelmingly owned by massive institutional funds, not individual retail investors, and their primary motivation is pure, high-octane growth in the real estate technology space.

As a seasoned analyst, I can tell you that the stock's ownership structure is a classic growth-stock profile, meaning it's dominated by professional money managers. This isn't a stock where retail investors drive the price action; it's a battleground for institutions like BlackRock and Vanguard Group Inc.

Key Investor Types: The Institutional Giants

The vast majority of Zillow Group, Inc.'s shares are held by institutional investors (mutual funds, pension funds, hedge funds). As of late 2025, institutional ownership sits around 85.89% of the shares outstanding, which is a huge concentration. This leaves a smaller, though still significant, portion for insiders-executives and board members-at about 14.11%. Retail investors, the 'you and me' crowd, hold a minimal float, meaning their buying and selling doesn't move the needle much.

The top institutional holders are the world's largest asset managers, the ones who track major indexes and manage trillions of dollars. Here's a quick look at the top three institutional positions as of the latest available filings in 2025 for ZG Class A shares, just to show the scale of capital involved:

Here's the quick math: Vanguard Group Inc. and BlackRock, Inc. alone hold a combined stake valued well over $2.8 billion. That's serious conviction.

Investment Motivations: Why They're Buying

The motivation for these large holders is almost entirely growth and market dominance, not income. Zillow Group, Inc. does not pay a dividend, so nobody is buying it for cash flow. They're buying it because it is the most visited real estate website in the United States, giving it a powerful competitive moat (a sustainable competitive advantage).

The recent financial results from the 2025 fiscal year confirm this growth story is still playing out. For example, in Q3 2025, the company reported total revenue of $676 million, a 16% increase year-over-year. But the real story is in the high-growth segments:

• Rentals revenue shot up 41% year-over-year.
• Multifamily revenue saw a massive 62% increase.
• The company finally delivered GAAP net income of $10 million in Q3 2025.

The institutional bet is that Zillow Group, Inc. can successfully transition from being just a listing portal to an integrated transaction platform, capturing more of the real estate value chain. They see the path to consistent profitability, backed by a strong liquidity position-cash and investments stood at $1.4 billion at the end of Q3 2025. If you want to understand the long-term vision they're buying into, you should look at the Mission Statement, Vision, & Core Values of Zillow Group, Inc. (ZG).

Investment Strategies: Growth and Passive Indexing

You see two main strategies at play here: passive indexing and aggressive growth investing.

The passive strategy is simple: firms like Vanguard Group Inc. and BlackRock, Inc. are mainly index fund managers. They hold Zillow Group, Inc. because it's a component of major indices like the Russell 1000 or various technology and real estate ETFs (Exchange-Traded Funds). They are long-term holders by default, and their large positions provide a stable floor for the stock price.

The aggressive growth strategy comes from hedge funds and active managers, like Tiger Global Management LLC. They are betting on the company's ability to capitalize on its massive user base of 250 million average monthly unique users in Q3 2025. These investors tolerate the volatility-the stock price declined about 17.10% from November 2024 to November 2025-because they believe the growth in rentals and mortgages will eventually lead to a much higher valuation than its current market cap of $18.7 billion. Their strategy is to hold for a multi-year breakout, but they're also the first to sell on bad news. It's a high-risk, high-reward approach.

What this estimate hides is the potential for a housing market slowdown to impact the core residential revenue, which was up only 7% year-over-year in Q3 2025. Still, the institutional money is focused on the long-term tech transformation, not just the cyclical housing market.

Next step for you: Drill down into the Q4 2025 guidance to see if the high-growth segments are expected to maintain their momentum.

Institutional Ownership and Major Shareholders of Zillow Group, Inc. (ZG)

You need to know who is really steering the Zillow Group, Inc. (ZG) ship, and the answer is clear: it's the big institutional money. These are the mutual funds, pension funds, and asset managers-the smart money-and they own the vast majority of the stock. As of the most recent filings (Q3 2025), institutional investors hold a dominant stake, making up over 85% of the company's total shares outstanding. This means their collective actions, not retail trading, drive the stock's long-term trajectory.

Here's the quick math on who holds the biggest positions. The top institutional holders alone command billions in value, signaling a deep, long-term conviction in Zillow Group, Inc.'s shift toward a more integrated real estate transaction model. It's defintely not a retail-driven stock.

The largest shareholders are exactly who you'd expect-the index fund giants and a few key active managers. Based on Q3 2025 filings (September 30, 2025), the top five institutional owners for Zillow Group, Inc. (ZG) Class A shares are:

Recent Shifts: Are Institutions Buying or Selling?

The ownership picture is mixed, but the net trend shows institutions are actively re-positioning. Overall, institutional shares (long) saw a decrease of about 3.18% in the most recent quarter, a net reduction of roughly 1.43 million shares. But you can't just look at the net number; you have to see who is moving the needle.

For example, while Caledonia (Private) Investments Pty Ltd and Vanguard Group Inc reduced their stakes by 6.018% and 5.436% respectively, other major players were buying. State Of Wisconsin Investment Board increased its position by a substantial 733,365 shares, and Fmr Llc boosted its holdings by 651,323 shares. This tells me that passive index funds and some long-time holders are trimming positions, but other active managers are using the dips to accumulate. This is a classic sign of a stock in transition.

This institutional buying is happening even as Zillow Group, Inc. insiders have been selling shares in Q4 2025. Honestly, the divergence between insider selling and institutional buying is the most interesting part of the story right now. Insiders often sell for personal reasons like tax planning, but institutions are betting on the long-term fundamentals.

The Impact of Institutional Conviction on Strategy

Large institutional investors play a critical role; they act as a massive, stabilizing force on the stock price and provide a clear mandate for the company's strategy. Their collective confidence anchors the valuation, especially when the stock is volatile. Zillow Group, Inc.'s stock price, which was trading around $65.71 per share as of November 20, 2025, is being supported by this institutional backing.

These investors are primarily focused on Zillow Group, Inc.'s operational efficiency and its pivot away from the failed iBuying model. Their continued investment reinforces the new strategy centered on the core Premier Agent and Rentals segments. For instance, the strong Q3 2025 results, which saw total revenue climb 16% year-over-year to $676 million and Rentals revenue surge 41%, are exactly what the institutions want to see. This performance validates their long-term thesis that Zillow Group, Inc. can monetize its massive user base through its core services. You can get a deeper dive into these numbers in Breaking Down Zillow Group, Inc. (ZG) Financial Health: Key Insights for Investors.

• Stabilize stock: Large holdings reduce daily price volatility.
• Validate strategy: Investment signals approval of the focus on high-margin segments.
• Demand performance: They expect the Q3 2025 Adjusted EBITDA of $165 million to continue growing.

The bottom line is that these large holders are betting on Zillow Group, Inc.'s $1.4 billion in cash and investments and its market leadership to drive growth, particularly in the high-growth Rentals segment, which is a key strategic pillar for the next few years.

Key Investors and Their Impact on Zillow Group, Inc. (ZG)

If you're looking at Zillow Group, Inc. (ZG), the first thing you need to understand is that institutional money-the big funds-drives the stock. Over 92% of Zillow Group, Inc.'s shares are held by institutions, which means their investment decisions, not retail trading, set the long-term price floor and ceiling.

The investor profile is a fascinating mix of high-conviction active management and massive, passive index funds. This creates a tension: the passive money provides stability, but the active money, particularly the largest shareholder, is the true catalyst for major stock movements.

The High-Conviction Active Investor: Caledonia

The single most influential shareholder is the Australian-based hedge fund, Caledonia (Private) Investments Pty Ltd. They are not a passive player; they are a high-conviction, long-term investor known for taking concentrated positions in companies they believe are fundamentally mispriced. As of a September 2025-related report, Caledonia holds a massive stake of approximately 15.8%, equating to around 38.17 million shares, with a value of roughly $2.6 billion.

Their influence is less about public activism and more about a deep, long-term belief in the company's strategy. They've been a major investor for a decade, and in a 2024 investor letter, they projected Zillow Group, Inc.'s stock would triple by the end of 2026, a forecast significantly more bullish than the average Wall Street analyst. When a firm with a concentrated bet like this speaks, the market listens. It's a classic case of betting big on a management team and a core business model.

The Passive Giants: Vanguard and BlackRock

The next tier of major holders consists of the world's largest index fund managers: The Vanguard Group, Inc. and BlackRock, Inc. These firms hold large stakes primarily because Zillow Group, Inc. is a component of major market indexes like the S&P 500 and various growth/real estate ETFs (Exchange-Traded Funds). Their investment is systematic, not discretionary.

Here's a quick look at their 2025 fiscal year positions:

The Vanguard Group, Inc. holds about 12.5%, or 30.14 million shares, and BlackRock, Inc. holds about 5.01%, or 12.14 million shares. Their influence is felt mostly in corporate governance (voting on board members or executive pay) and providing a stable base of demand for the stock. They don't typically push for a strategic overhaul, but they defintely care about environmental, social, and governance (ESG) factors.

Mapping Recent Investor Moves and Catalysts

The most recent institutional filings from 2025 show a few key shifts that map to the company's transition away from its failed iBuying venture (Zillow Offers) and toward an integrated real estate ecosystem.

• Caledonia's Q2 2025 Sale: Despite their bullish long-term forecast, Caledonia reduced its Class C stock holding by 6.5% in Q2 2025, a sale valued at between $122 million - $145 million. This kind of profit-taking, even from a long-term holder, shows a disciplined approach to managing a massive, concentrated position.
• FMR LLC's Accumulation: FMR LLC, another major active manager, increased its stake by 8.21% as of September 30, 2025. This move suggests confidence in the company's strategy, particularly its focus on the Premier Agent and Rentals segments.
• Insider Selling: In September 2025, COO Jun Choo sold 25,575 shares, a transaction worth over $2.3 million. While this is a small fraction of the total shares, it's a reminder that management can monetize their holdings, which is something to track for sentiment.

The core investment narrative for all these buyers is Zillow Group, Inc.'s strong market position and its recent financial momentum, reporting Q3 2025 GAAP Net Income of $10 million on revenue of $676 million, and guiding for positive net income for the full year 2025. That shift to profitability is the signal that active managers like FMR LLC are responding to. For a deeper dive into the company's business model, you can check out Zillow Group, Inc. (ZG): History, Ownership, Mission, How It Works & Makes Money.

Market Impact and Investor Sentiment

You're looking at Zillow Group, Inc. (ZG) and seeing a mixed signal: the big money is buying, but the people who run the company are selling. Honestly, this is a classic market dichotomy, but the overarching investor sentiment for Zillow Group, Inc. is a solid Moderate Buy, according to the consensus of 30 research firms as of late 2025. That's the direct takeaway.

The institutional conviction is strong. Major shareholders, including Caledonia (Private) Investments Pty Ltd, Vanguard Group Inc, and BlackRock, Inc., hold significant stakes. Institutional ownership accounts for about 71.01% of the stock's float, which is a high level of professional backing. They are betting on the long-term vision of the housing super app, even as the real estate market faces macro headwinds.

• Institutional Shares Held (Q3 2025): Over 201 million.
• Vanguard Group Inc. Holding Value: Approximately $472.5 million.
• BlackRock, Inc. Holding Value: Approximately $162.0 million.

But here's the quick math on the insider activity: while institutions are accumulating, company insiders have been net sellers. For example, the Chief Operating Officer sold 25,575 shares for over $2.3 million in September 2025. This insider selling often signals profit-taking or personal financial planning, but it does inject a note of caution into the near-term outlook, which is something you defintely need to watch.

Recent Market Reactions and Ownership Moves

The stock market's reaction to Zillow Group, Inc. in 2025 has been volatile, reflecting the push-pull between strong operational execution and regulatory risk. The company's shares were down about 4.1% year-to-date as of mid-November 2025, suggesting momentum has faded a bit. The biggest single-day jolt came in October 2025 when the stock fell 4% after the U.S. Federal Trade Commission (FTC) and a coalition of states sued the company. The lawsuit alleges an anti-competitive agreement involving a $100 million payment to a rival to exit the rental listings market. That kind of legal uncertainty is a clear risk that the market immediately prices in.

Still, positive financial news has provided support. The Q3 2025 earnings report, which showed a GAAP net income of $10 million, marked a return to profitability and was a significant operational win that helped stabilize the stock. This milestone, coupled with Rentals revenue surging 41% year-over-year in Q3, shows that the core business strategy is working, even when legal issues loom. If you want a deeper dive into the company's financial resilience, check out Breaking Down Zillow Group, Inc. (ZG) Financial Health: Key Insights for Investors.

Analyst Perspectives on Zillow Group, Inc.'s Future

Wall Street analysts are generally bullish, mapping the company's near-term risks to a clear path for future growth. The consensus rating of 'Moderate Buy' comes with an average 12-month price objective of approximately $87.42 per share. This suggests a meaningful upside from the current trading range, which is a strong signal of confidence in the long-term strategy.

The key catalyst analysts cite is the anticipated earnings inflection point. Analysts forecast Zillow Group, Inc. will post an annual net income of approximately $21 million for the full 2025 fiscal year, marking a significant turnaround from prior losses. This shift from heavy investment to consistent earnings is pivotal. The focus is on the integrated-transaction strategy, or the 'housing super app' vision, which aims to monetize its massive user traffic across a full suite of services-from search and agent connections to mortgages and title services.

However, the outlook is not without its caveats. Some analysts have downgraded their rating to 'Hold' due to near-term uncertainty, specifically citing slowing growth in the Mortgages segment and macro headwinds impacting the broader housing market. This is a realist's view: the long-term story is great, but the next few quarters could be bumpy. Here's a snapshot of the analyst sentiment:

The bottom line is that the large institutional investors are taking a calculated bet on the long game. They believe Zillow Group, Inc.'s dominant market position and technology innovation will eventually translate its Q3 Adjusted EBITDA of $165 million into sustained, higher net income. Your next step should be to monitor Q4 2025 earnings for confirmation of the full-year net income forecast.