Piper Jaffray analyst Jason Deleeuw lowered his price target for Zillow Group to $37 from $43 and keeps a Neutral rating on the shares. The company's Q3 revenue beat consensus by 4% primarily due to stronger Homes segment revenue, but also stronger Premier Agent revenue. However, its Homes unit economics worsened in the quarter to a loss of $112 per home sold before interest expense versus gains of $1,578 in Q2 as cost of revenue sold remained elevated and renovation, holding and selling costs per unit trended higher, Deleeuw tells investors in a post-earnings research note. The analyst believes the improved Premier Agent trends and outlook are a "strong positive" for Zillow shares after significant challenges over the last year. But he's disappointed to see Zillow's Homes segment unit economics worsen even as the business scales.

Bullish option flow detected in Zillow with 7,990 calls trading, 3x expected, and implied vol increasing almost 2 points to 60.56%. May-24 51 calls and Jun-24 45 calls are the most active options, with total volume in those strikes near 3,300 contracts. The Put/Call Ratio is 0.11. Earnings are expected on May 1st.

Real Estate Services Analysts, along with James Dwiggns, CEO of NextHome, discuss the latest perspectives on the proposed National Association of Realtors (NAR) Settlement and the implications on brokerage business models (relevant companies ZG/Z, CSGP, COMP, RDFN, EXPI, HOUS, FTHM, REAX, RMAX) on an Analyst/Industry conference call to be held on May 1 at 11 am.