CoStar Group (NASDAQ:CSGP) Downgraded by Keefe, Bruyette & Woods to "Market Perform"

Key Points

• Keefe, Bruyette & Woods downgraded CoStar Group from “Outperform” to “Market Perform” and cut its price target from $41 to $29, reflecting limited near-term upside. The broader analyst consensus remains “Hold,” with a $45.17 target.
• CoStar’s second-quarter results were strong, with adjusted EPS of $0.32 beating estimates and revenue rising 18.4% year over year to $925 million. Full-year 2026 adjusted EPS guidance of $1.32–$1.39 also exceeds current analyst expectations.
• The company issued a weaker-than-expected third-quarter outlook, forecasting adjusted EPS of $0.31–$0.34 and revenue of $935–$945 million. This softer near-term guidance may constrain the stock despite improving profitability and bookings.

CoStar Group (NASDAQ:CSGP - Get Free Report) was downgraded by research analysts at Keefe, Bruyette & Woods from an "outperform" rating to a "market perform" rating in a research report issued on Wednesday, Marketbeat Ratings reports. They currently have a $29.00 target price on the technology company's stock, down from their previous target price of $41.00. Keefe, Bruyette & Woods' price objective points to a potential downside of 4.39% from the stock's previous close.

A number of other research analysts have also weighed in on CSGP. BTIG Research reduced their price objective on shares of CoStar Group from $55.00 to $42.00 and set a "buy" rating for the company in a research note on Wednesday. Weiss Ratings reaffirmed a "sell (d)" rating on shares of CoStar Group in a report on Wednesday, June 24th. Wall Street Zen upgraded CoStar Group from a "hold" rating to a "buy" rating in a research note on Saturday. Citigroup dropped their price objective on CoStar Group from $100.00 to $70.00 and set a "buy" rating on the stock in a report on Thursday, April 23rd. Finally, Wells Fargo & Company set a $26.00 target price on CoStar Group and gave the stock an "underweight" rating in a research note on Wednesday, June 24th. Nine research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $45.17.

CoStar Group Stock Performance

Shares of CSGP opened at $30.33 on Wednesday. CoStar Group has a 1 year low of $26.68 and a 1 year high of $97.43. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.20 and a quick ratio of 2.20. The stock's fifty day moving average price is $30.83 and its two-hundred day moving average price is $40.64. The firm has a market cap of $12.39 billion, a PE ratio of 505.58, a PEG ratio of 0.75 and a beta of 0.74.

CoStar Group (NASDAQ:CSGP - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The technology company reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.29 by $0.03. CoStar Group had a return on equity of 2.90% and a net margin of 0.74%.The company had revenue of $925.00 million during the quarter, compared to the consensus estimate of $928.81 million. During the same quarter in the prior year, the company earned $0.17 EPS. The firm's quarterly revenue was up 18.4% compared to the same quarter last year. CoStar Group has set its Q3 2026 guidance at 0.310-0.340 EPS and its FY 2026 guidance at 1.320-1.390 EPS. On average, equities research analysts forecast that CoStar Group will post 1.03 EPS for the current year.

Insider Activity

In other CoStar Group news, CEO Andrew C. Florance acquired 71,430 shares of the stock in a transaction that occurred on Friday, May 1st. The shares were bought at an average price of $35.20 per share, for a total transaction of $2,514,336.00. Following the completion of the transaction, the chief executive officer owned 1,722,865 shares of the company's stock, valued at approximately $60,644,848. This represents a 4.33% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 1.18% of the company's stock.

Institutional Trading of CoStar Group

Institutional investors and hedge funds have recently modified their holdings of the business. United Capital Financial Advisors LLC raised its stake in CoStar Group by 2.3% in the third quarter. United Capital Financial Advisors LLC now owns 7,545 shares of the technology company's stock valued at $637,000 after purchasing an additional 167 shares in the last quarter. Man Group plc increased its holdings in shares of CoStar Group by 1.7% in the 2nd quarter. Man Group plc now owns 10,368 shares of the technology company's stock worth $834,000 after buying an additional 177 shares during the last quarter. Norinchukin Bank The raised its position in shares of CoStar Group by 0.5% during the 3rd quarter. Norinchukin Bank The now owns 35,539 shares of the technology company's stock valued at $2,998,000 after buying an additional 184 shares in the last quarter. Wealth Enhancement Advisory Services LLC lifted its holdings in shares of CoStar Group by 0.9% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 21,517 shares of the technology company's stock worth $1,446,000 after acquiring an additional 186 shares during the last quarter. Finally, Keel Point LLC grew its position in CoStar Group by 6.4% in the second quarter. Keel Point LLC now owns 3,830 shares of the technology company's stock worth $308,000 after acquiring an additional 231 shares in the last quarter. Hedge funds and other institutional investors own 96.60% of the company's stock.

Key CoStar Group News

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

• Positive Sentiment: CoStar reported second-quarter adjusted earnings of $0.32 per share, above the $0.28–$0.29 analyst consensus and up from $0.17 a year earlier. Revenue rose 18.4% year over year to $925 million, while net income increased sharply and adjusted EBITDA more than doubled, signaling improving profitability. CoStar Group Q2 2026 Results
• Positive Sentiment: Net new bookings reached $69 million, up 3% from the prior quarter, supporting continued demand across CoStar’s real estate marketplaces, information and analytics businesses. Management described the results as a profitability inflection. CoStar Group Q2 2026 Earnings
• Positive Sentiment: Full-year 2026 adjusted EPS guidance of $1.32–$1.39 is above the roughly $1.29 analyst estimate, potentially reinforcing the longer-term earnings-growth story.
• Neutral Sentiment: Management’s second-quarter revenue was slightly below expectations, despite the strong year-over-year growth rate. The company also continues to trade well below its 52-week high, which may be encouraging bargain hunting and speculative buying ahead of earnings.
• Negative Sentiment: Third-quarter guidance was below consensus: adjusted EPS of $0.31–$0.34 versus $0.36 expected, and revenue of $935–$945 million versus approximately $970 million expected. The softer near-term outlook may limit the stock’s upside and explains the mixed market reaction. CoStar Q2 Earnings and Q3 Guidance

CoStar Group Company Profile

CoStar Group, Inc is a provider of information, analytics and online marketplaces for the commercial real estate industry. The company gathers property-level data, builds market analytics and supplies research tools used by brokers, owners, lenders, investors and other real estate professionals to evaluate markets, track inventory and manage listings. CoStar's offerings are delivered primarily through subscription-based platforms that combine proprietary databases, mapping and workflow applications to support decision-making across the property life cycle.

In addition to its core CoStar research service, the company operates prominent online listing and marketing platforms that connect buyers, sellers, tenants and brokers.

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