CoStar Group (NASDAQ:CSGP) Hits New 1-Year Low After Analyst Downgrade

Key Points

• CoStar Group hit a new 52-week low after Robert W. Baird cut its price target from $73 to $56, with shares falling as low as $34.75 and last trading at $37.06 on heavy volume (~11.6M).
• Several firms also reduced targets, but MarketBeat's consensus remains a Moderate Buy with an average analyst target of $71.76.
• Company fundamentals show a recent beat (Q4 EPS $0.31 vs. $0.27; revenue $899.9M, +26.9% y/y), Q1 guidance of $0.160–0.190, and a newly authorized $1.5 billion share repurchase (up to 5.3% of shares).

CoStar Group, Inc. (NASDAQ:CSGP - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Tuesday after Robert W. Baird lowered their price target on the stock from $73.00 to $56.00. Robert W. Baird currently has an outperform rating on the stock. CoStar Group traded as low as $34.75 and last traded at $37.06, with a volume of 11553573 shares. The stock had previously closed at $36.48.

Several other equities research analysts have also issued reports on CSGP. BMO Capital Markets reduced their target price on shares of CoStar Group from $72.00 to $53.00 and set a "market perform" rating for the company in a report on Thursday, February 26th. William Blair reissued an "outperform" rating on shares of CoStar Group in a report on Tuesday, March 3rd. Needham & Company LLC reduced their target price on shares of CoStar Group from $80.00 to $60.00 and set a "buy" rating for the company in a report on Wednesday, February 25th. Citizens Jmp cut their price objective on shares of CoStar Group from $78.00 to $73.00 and set a "market outperform" rating for the company in a report on Wednesday, February 25th. Finally, BTIG Research set a $60.00 price objective on shares of CoStar Group and gave the company a "buy" rating in a report on Thursday, February 26th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $71.76.

Insider Transactions at CoStar Group

In related news, Director Louise S. Sams acquired 1,000 shares of the business's stock in a transaction on Friday, March 6th. The stock was acquired at an average cost of $48.36 per share, with a total value of $48,360.00. Following the acquisition, the director directly owned 20,409 shares in the company, valued at $986,979.24. This represents a 5.15% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 1.09% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On CoStar Group

A number of institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its holdings in CoStar Group by 1.8% during the 3rd quarter. Vanguard Group Inc. now owns 70,056,441 shares of the technology company's stock valued at $5,910,662,000 after buying an additional 1,208,958 shares in the last quarter. Bamco Inc. NY grew its holdings in shares of CoStar Group by 1.3% in the fourth quarter. Bamco Inc. NY now owns 19,498,099 shares of the technology company's stock valued at $1,311,052,000 after purchasing an additional 242,533 shares in the last quarter. State Street Corp grew its holdings in shares of CoStar Group by 1.9% in the fourth quarter. State Street Corp now owns 18,632,352 shares of the technology company's stock valued at $1,252,839,000 after purchasing an additional 348,224 shares in the last quarter. Baillie Gifford & Co. grew its holdings in shares of CoStar Group by 56.9% in the fourth quarter. Baillie Gifford & Co. now owns 12,933,185 shares of the technology company's stock valued at $869,627,000 after purchasing an additional 4,691,543 shares in the last quarter. Finally, Capital International Investors grew its holdings in shares of CoStar Group by 59.7% in the fourth quarter. Capital International Investors now owns 10,842,010 shares of the technology company's stock valued at $729,020,000 after purchasing an additional 4,053,456 shares in the last quarter. 96.60% of the stock is owned by hedge funds and other institutional investors.

CoStar Group Stock Performance

The business's fifty day moving average is $44.67 and its two-hundred day moving average is $60.73. The company has a quick ratio of 2.84, a current ratio of 2.84 and a debt-to-equity ratio of 0.12. The stock has a market capitalization of $15.56 billion, a PE ratio of 3,709.71, a price-to-earnings-growth ratio of 0.98 and a beta of 0.92.

CoStar Group (NASDAQ:CSGP - Get Free Report) last posted its earnings results on Tuesday, February 24th. The technology company reported $0.31 earnings per share for the quarter, beating analysts' consensus estimates of $0.27 by $0.04. CoStar Group had a net margin of 0.23% and a return on equity of 2.53%. The firm had revenue of $899.90 million during the quarter, compared to analyst estimates of $892.22 million. During the same period last year, the firm posted $0.26 earnings per share. CoStar Group's revenue for the quarter was up 26.9% compared to the same quarter last year. CoStar Group has set its Q1 2026 guidance at 0.160-0.190 EPS. As a group, research analysts anticipate that CoStar Group, Inc. will post 0.94 EPS for the current fiscal year.

CoStar Group declared that its board has authorized a share repurchase plan on Wednesday, January 7th that allows the company to repurchase $1.50 billion in shares. This repurchase authorization allows the technology company to purchase up to 5.3% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board believes its stock is undervalued.

About CoStar Group

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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