CoStar Group (NASDAQ:CSGP) Sets New 1-Year Low Following Analyst Downgrade

Key Points

• CoStar Group shares fell to a new 52-week low after Citigroup downgraded the stock from Outperform to Neutral, with shares trading as low as $26.39.
• The company beat second-quarter earnings expectations, reporting adjusted EPS of $0.32 and 18.4% year-over-year revenue growth to $925 million, but issued weaker-than-expected third-quarter guidance.
• Analyst sentiment remains mixed: nine analysts rate the stock Buy, nine Hold and two Sell, producing an average Hold rating and a $45.17 price target, while several firms recently lowered their targets.

CoStar Group, Inc. (NASDAQ:CSGP - Get Free Report) hit a new 52-week low on Wednesday after Citigroup downgraded the stock from a market outperform rating to a neutral rating. The company traded as low as $26.39 and last traded at $27.4810, with a volume of 182581 shares. The stock had previously closed at $30.33.

A number of other equities research analysts also recently issued reports on CSGP. BTIG Research reduced their price target on CoStar Group from $55.00 to $42.00 and set a "buy" rating on the stock in a research report on Wednesday. The Goldman Sachs Group reiterated a "buy" rating and set a $40.00 target price on shares of CoStar Group in a research report on Wednesday. William Blair restated a "market perform" rating on shares of CoStar Group in a research report on Wednesday. Wolfe Research reaffirmed an "outperform" rating and issued a $32.00 price target (down from $35.00) on shares of CoStar Group in a research note on Wednesday. Finally, Benchmark started coverage on shares of CoStar Group in a research report on Thursday, June 4th. They set a "buy" rating and a $45.00 price objective for the company. Nine research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $45.17.

Insiders Place Their Bets

In other CoStar Group news, CEO Andrew C. Florance acquired 71,430 shares of CoStar Group stock in a transaction that occurred on Friday, May 1st. The shares were bought at an average price of $35.20 per share, with a total value of $2,514,336.00. Following the completion of the purchase, the chief executive officer directly owned 1,722,865 shares in the company, valued at $60,644,848. This trade represents a 4.33% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. 1.18% of the stock is owned by insiders.

Key Stories Impacting CoStar Group

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

• Positive Sentiment: CoStar reported second-quarter adjusted earnings of $0.32 per share, ahead of the roughly $0.28–$0.29 consensus, while revenue increased 18.4% year over year to $925 million. Net income reportedly rose sharply and adjusted EBITDA more than doubled, suggesting improving profitability. CoStar Group Q2 Earnings Beat Estimates
• Positive Sentiment: Full-year 2026 adjusted EPS guidance of $1.32–$1.39 is above the approximately $1.29 analyst consensus, while net new bookings reached $69 million, up 3% from the prior quarter. CoStar Group Q2 2026 Results
• Neutral Sentiment: BTIG and Needham retained Buy ratings but lowered their price targets to $42 and $40, respectively. William Blair reaffirmed a Market Perform rating, indicating analysts see long-term potential but greater near-term execution risk.
• Negative Sentiment: Third-quarter guidance was the main concern: CoStar forecast adjusted EPS of $0.31–$0.34 versus a $0.36 consensus and revenue of $935–$945 million versus roughly $970 million expected. The disappointing outlook overshadowed the quarterly earnings beat. CoStar Q2 Earnings Results and Guidance
• Negative Sentiment: Keefe, Bruyette & Woods downgraded CSGP from Outperform to Market Perform and reduced its price target from $41 to $29. BTIG and Needham also cut their targets substantially, reinforcing concerns about valuation and the pace of growth.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Douglas Lane & Associates LLC grew its position in shares of CoStar Group by 4.3% during the 4th quarter. Douglas Lane & Associates LLC now owns 683,061 shares of the technology company's stock worth $45,929,000 after buying an additional 28,279 shares during the period. Barclays PLC increased its stake in shares of CoStar Group by 83.4% in the 4th quarter. Barclays PLC now owns 2,321,700 shares of the technology company's stock valued at $156,111,000 after acquiring an additional 1,055,584 shares in the last quarter. Envestnet Portfolio Solutions Inc. lifted its position in shares of CoStar Group by 100.3% during the 4th quarter. Envestnet Portfolio Solutions Inc. now owns 245,184 shares of the technology company's stock valued at $16,486,000 after acquiring an additional 122,776 shares during the period. Mirae Asset Global Investments Co. Ltd. lifted its position in shares of CoStar Group by 22.6% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 210,095 shares of the technology company's stock valued at $14,127,000 after acquiring an additional 38,715 shares during the period. Finally, Baillie Gifford & Co. boosted its stake in CoStar Group by 56.9% during the fourth quarter. Baillie Gifford & Co. now owns 12,933,185 shares of the technology company's stock worth $869,627,000 after acquiring an additional 4,691,543 shares in the last quarter. 96.60% of the stock is owned by institutional investors and hedge funds.

CoStar Group Stock Performance

The company has a quick ratio of 2.20, a current ratio of 2.20 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $11.33 billion, a P/E ratio of 459.56, a price-to-earnings-growth ratio of 0.75 and a beta of 0.74. The company's 50 day moving average is $30.83 and its 200-day moving average is $40.64.

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, beating the consensus estimate of $0.29 by $0.03. CoStar Group had a net margin of 0.74% and a return on equity of 2.90%. The firm had revenue of $925.00 million during the quarter, compared to the consensus estimate of $928.81 million. During the same period in the previous year, the firm posted $0.17 earnings per share. The business's 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. As a group, equities analysts anticipate that CoStar Group, Inc. will post 1.03 EPS for the current year.

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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