CoStar Group (NASDAQ:CSGP) Rating Lowered to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded CoStar Group to “Hold” from “Buy,” adding to mixed analyst sentiment. The consensus rating is now “Hold,” with an average price target of $41.61.
• CoStar reported quarterly EPS of $0.32, beating the $0.29 estimate, while revenue rose 18.4% year over year to $925 million but slightly missed expectations.
• Shares opened at $28.76, down 2.4%, and remain well below their 52-week high of $97.43. Concerns include slowing momentum, high valuation, soft guidance and several recent analyst price-target reductions.

CoStar Group (NASDAQ:CSGP - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Sunday.

Several other research analysts also recently commented on CSGP. Needham & Company LLC reduced their price objective on shares of CoStar Group from $50.00 to $40.00 and set a "buy" rating for the company in a research note on Wednesday. Citigroup downgraded CoStar Group from a "market outperform" rating to a "neutral" rating and dropped their target price for the stock from $70.00 to $33.00 in a research report on Wednesday. Wells Fargo & Company set a $26.00 price target on CoStar Group and gave the stock an "underweight" rating in a report on Wednesday, June 24th. JPMorgan Chase & Co. reduced their price target on CoStar Group from $58.00 to $52.00 and set an "overweight" rating for the company in a research report on Wednesday. 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 note on Monday, July 13th. Nine investment 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.com, the stock has a consensus rating of "Hold" and a consensus price target of $41.61.

CoStar Group Trading Down 2.4%

Shares of CoStar Group stock opened at $28.76 on Friday. The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.20 and a current ratio of 2.21. The stock has a market capitalization of $11.65 billion, a P/E ratio of 151.38, a P/E/G ratio of 0.76 and a beta of 0.74. CoStar Group has a 52-week low of $25.89 and a 52-week high of $97.43. The stock's 50-day simple moving average is $30.55 and its 200 day simple moving average is $40.14.

CoStar Group (NASDAQ:CSGP - Get Free Report) last posted its 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 net margin of 2.08% and a return on equity of 3.74%. The firm had revenue of $925.00 million during the quarter, compared to the consensus estimate of $928.81 million. During the same quarter last year, the company earned $0.17 earnings per share. The company's revenue was up 18.4% on a year-over-year basis. 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. As a group, research analysts anticipate that CoStar Group will post 1.06 EPS for the current year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Reflection Asset Management purchased a new stake in shares of CoStar Group in the fourth quarter worth $27,000. Lloyd Advisory Services LLC. bought a new stake in CoStar Group during the fourth quarter valued at $29,000. DV Equities LLC purchased a new position in CoStar Group during the fourth quarter worth about $40,000. IFP Advisors Inc grew its position in CoStar Group by 329.4% during the fourth quarter. IFP Advisors Inc now owns 614 shares of the technology company's stock worth $41,000 after buying an additional 471 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd increased its stake in CoStar Group by 25,650.0% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 515 shares of the technology company's stock worth $43,000 after acquiring an additional 513 shares during the last quarter. 96.60% of the stock is owned by institutional investors.

Key CoStar Group News

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

• Positive Sentiment: CoStar’s second-quarter revenue increased 18.4% year over year, while adjusted earnings of $0.32 per share exceeded the $0.29 consensus estimate. The company also highlighted record revenue growth and maintained third-quarter and full-year 2026 earnings guidance. CoStar Group Q2 2026 Earnings Call Highlights
• Positive Sentiment: Zacks identified CoStar as a potentially attractive long-term growth stock, suggesting its growth profile and Style Scores remain supportive despite recent momentum concerns. Why CoStar Group Is a Top Growth Stock for the Long-Term
• Neutral Sentiment: CoStar data showed UK regional office construction starts fell below 5 million square feet in the second quarter, a 20-year low, while London dominated development. The report reinforces CoStar’s value as a real estate data provider, but weak office construction reflects challenging conditions for parts of the property market. CoStar Data Shows London Dominates UK Office Development
• Negative Sentiment: William Blair, Keefe, Bruyette & Woods and other analysts lowered their ratings, while JPMorgan cut its price target to $52, Citizens JMP reduced its target to $35, and BTIG issued a pessimistic forecast. The changes signal diminishing confidence in the near-term upside. Analyst Rating and Price Target Updates
• Negative Sentiment: Investor concerns include slower momentum, uncertainty around future earnings growth, soft guidance and the departure of Chief Financial Officer Scott Wheeler. CoStar’s quarterly revenue also came in slightly below consensus, and its high price-to-earnings ratio leaves the stock sensitive to any further slowdown. CoStar Group Near-Term Earnings Growth Uncertainty

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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