CoStar Group (NASDAQ:CSGP) Stock Price Target Cut by JPMorgan Chase & Co.

Key Points

• JPMorgan cut CoStar Group’s price target to $44 from $52 but maintained an “overweight” rating, implying approximately 61% upside from the reported $27.28 share price.
• Analyst sentiment is mixed: CoStar has an average “Hold” rating and a $39.11 consensus price target, with several brokerages recently lowering their targets.
• CoStar exceeded quarterly expectations with $952 million in revenue and $0.38 EPS, while revenue increased 14% year over year; however, concerns about valuation, forward guidance, and the execution and dilution risks of its planned $730 million Vexcel acquisition continue to weigh on the stock.

CoStar Group (NASDAQ:CSGP - Get Free Report) had its price objective reduced by equities researchers at JPMorgan Chase & Co. from $52.00 to $44.00 in a report released on Wednesday, Benzinga reports. The firm presently has an "overweight" rating on the technology company's stock. JPMorgan Chase & Co.'s price target points to a potential upside of 61.30% from the company's current price.

Several other brokerages also recently issued reports on CSGP. Citizens Jmp cut their target price on shares of CoStar Group from $44.00 to $35.00 and set a "market outperform" rating for the company in a research note on Wednesday, July 29th. Citigroup reissued a "market outperform" rating on shares of CoStar Group in a research report on Wednesday. BTIG Research dropped their price objective on CoStar Group from $42.00 to $35.00 and set a "buy" rating on the stock in a research note on Wednesday. Keefe, Bruyette & Woods lowered CoStar Group from an "outperform" rating to a "market perform" rating and dropped their price objective for the company from $41.00 to $29.00 in a research note on Wednesday, July 29th. Finally, Royal Bank Of Canada set a $34.00 price objective on CoStar Group and gave the company a "sector perform" rating in a research report on Monday, July 13th. Ten equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, CoStar Group has an average rating of "Hold" and an average price target of $39.11.

CoStar Group Stock Performance

NASDAQ CSGP traded down $4.73 on Wednesday, hitting $27.28. 13,015,911 shares of the stock were exchanged, compared to its average volume of 7,029,661. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.21 and a quick ratio of 2.21. The business's fifty day moving average is $30.56 and its 200 day moving average is $37.41. CoStar Group has a 52 week low of $25.89 and a 52 week high of $72.50. The company has a market capitalization of $11.05 billion, a PE ratio of 143.42, a P/E/G ratio of 0.86 and a beta of 0.80.

CoStar Group (NASDAQ:CSGP - Get Free Report) last announced its quarterly earnings results on Tuesday, October 27th. The technology company reported $0.38 EPS for the quarter, beating analysts' consensus estimates of $0.34 by $0.04. The firm had revenue of $952.00 million during the quarter, compared to analysts' expectations of $945.82 million. CoStar Group had a net margin of 2.08% and a return on equity of 3.74%. The company's revenue for the quarter was up 14.1% compared to the same quarter last year. During the same quarter last year, the company posted $0.23 earnings per share. Research analysts anticipate that CoStar Group will post 1.07 EPS for the current fiscal year.

Insider Transactions at CoStar Group

In related news, CEO Andrew Florance purchased 83,300 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The shares were acquired at an average price of $29.89 per share, for a total transaction of $2,489,837.00. Following the purchase, the chief executive officer owned 1,806,165 shares in the company, valued at approximately $53,986,271.85. This represents a 4.83% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Cynthia Cammett Cann sold 4,788 shares of the stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $30.78, for a total transaction of $147,374.64. Following the completion of the transaction, the chief accounting officer directly owned 18,822 shares in the company, valued at approximately $579,341.16. This represents a 20.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 1.18% of the company's stock.

Institutional Investors Weigh In On CoStar Group

A number of institutional investors have recently made changes to their positions in CSGP. BlackRock Inc. bought a new position in shares of CoStar Group during the second quarter worth approximately $957,612,000. Bamco Inc. NY bought a new stake in CoStar Group in the 2nd quarter valued at $612,470,000. Principal Financial Group Inc. grew its holdings in CoStar Group by 0.7% in the 1st quarter. Principal Financial Group Inc. now owns 17,696,192 shares of the technology company's stock valued at $713,866,000 after buying an additional 130,118 shares in the last quarter. Jupiter Topco LLC acquired a new position in CoStar Group in the 2nd quarter valued at $221,826,000. Finally, Janus Henderson Group PLC grew its holdings in CoStar Group by 3.4% in the 1st quarter. Janus Henderson Group PLC now owns 7,724,152 shares of the technology company's stock valued at $311,586,000 after buying an additional 250,772 shares in the last quarter. Institutional investors own 96.60% of the company's stock.

Trending Headlines about CoStar Group

Here are the key news stories impacting CoStar Group this week:

• Positive Sentiment: CoStar reported record third-quarter revenue of $952 million, up approximately 14% year over year, exceeding consensus estimates. Adjusted EBITDA reached a record $229 million, roughly doubling from the prior year, while earnings per share of $0.38 topped the $0.34 analyst estimate. CoStar Group third-quarter results
• Positive Sentiment: Management raised its 2026 adjusted EBITDA outlook to $820 million-$840 million and set a long-term target of $1.25 billion in adjusted EBITDA for 2028, signaling confidence in cost controls and operating leverage. CoStar raises EBITDA outlook
• Positive Sentiment: The planned Vexcel Group acquisition would add high-resolution aerial imagery and potentially strengthen CoStar’s property-search, analytics, and digital-twin offerings.
• Neutral Sentiment: Analyst sentiment remains mixed: Needham maintained a $40 buy target and BTIG retained a buy rating with a $35 target, while Goldman Sachs, Baird, Keefe, Bruyette & Woods, and Wells Fargo lowered their targets. Wells Fargo continues to rate the stock underweight at $26. Goldman Sachs price target
• Negative Sentiment: Investors appear concerned that the $730 million Vexcel transaction, funded with cash and shares, could increase execution risk, dilute shareholders, and divert capital despite its strategic benefits. CoStar Vexcel acquisition
• Negative Sentiment: Despite the revenue and adjusted EBITDA gains, some coverage highlighted weaker-than-expected forward guidance and continued concerns about residential-market profitability and elevated interest rates, pressuring the stock’s valuation.

About CoStar Group

CoStar Group, Inc is a provider of information, analytics, and online marketplaces for the commercial and residential real estate industries. The company collects, analyzes, and distributes property and market data to real estate professionals, investors, lenders, and other businesses.

Its brands and services include CoStar, which offers commercial real estate data and research; LoopNet, a marketplace for commercial property listings; Apartments.com, a rental housing marketplace; and Homes.com, a residential real estate platform.

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