CoStar Group (NASDAQ:CSGP) Trading Up 6.5% - Should You Buy?

Key Points

• CoStar Group shares jumped 6.5% on Thursday, trading as high as $30.30 after closing at $28.49, though volume was well below average.
• Analyst sentiment is mixed but generally positive: the stock has a Moderate Buy consensus with an average target price of $51.50, while recent targets ranged from $26 to $46.
• The company recently beat earnings expectations, reporting $0.23 EPS versus $0.18 expected and 22.5% revenue growth year over year, and CEO Andrew C. Florance also bought additional shares in May.

CoStar Group, Inc. (NASDAQ:CSGP - Get Free Report)'s share price shot up 6.5% during trading on Thursday . The stock traded as high as $30.30 and last traded at $30.3310. Approximately 1,657,027 shares traded hands during trading, a decline of 77% from the average session volume of 7,169,962 shares. The stock had previously closed at $28.49.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on CSGP shares. Deutsche Bank Aktiengesellschaft set a $44.00 price target on CoStar Group in a research report on Thursday, April 30th. Wells Fargo & Company set a $26.00 target price on shares of CoStar Group and gave the company an "underweight" rating in a research note on Wednesday, June 24th. Needham & Company LLC dropped their target price on shares of CoStar Group from $60.00 to $50.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. The Goldman Sachs Group set a $46.00 target price on shares of CoStar Group and gave the stock a "buy" rating in a research report on Thursday, June 25th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of CoStar Group in a research report on Wednesday, June 24th. Twelve analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $51.50.

CoStar Group Stock Up 6.3%

The firm has a market cap of $12.37 billion, a price-to-earnings ratio of 504.78, a price-to-earnings-growth ratio of 0.71 and a beta of 0.74. 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 firm has a 50 day moving average price of $31.57 and a 200-day moving average price of $43.02.

CoStar Group (NASDAQ:CSGP - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The technology company reported $0.23 earnings per share for the quarter, topping analysts' consensus estimates of $0.18 by $0.05. The business had revenue of $897.00 million during the quarter, compared to the consensus estimate of $896.73 million. CoStar Group had a net margin of 0.74% and a return on equity of 2.90%. CoStar Group's revenue for the quarter was up 22.5% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.04) earnings per share. CoStar Group has set its Q2 2026 guidance at 0.270-0.300 EPS and its FY 2026 guidance at 1.320-1.390 EPS. As a group, equities analysts predict that CoStar Group, Inc. will post 1.03 EPS for the current fiscal year.

Insider Activity

In related news, CEO Andrew C. Florance purchased 71,430 shares of the stock in a transaction dated Friday, May 1st. The stock was bought at an average cost of $35.20 per share, with a total value of $2,514,336.00. Following the purchase, the chief executive officer directly owned 1,722,865 shares in the company, valued at $60,644,848. The trade was a 4.33% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this link. Insiders own 1.18% of the company's stock.

Hedge Funds Weigh In On CoStar Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Reflection Asset Management bought a new position in CoStar Group during the fourth quarter worth about $27,000. Lloyd Advisory Services LLC. bought a new stake in shares of CoStar Group in the fourth quarter worth about $29,000. DV Equities LLC acquired a new stake in shares of CoStar Group during the fourth quarter worth about $40,000. IFP Advisors Inc raised its position in shares of 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 purchasing an additional 471 shares during the period. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in shares of CoStar Group by 25,650.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 515 shares of the technology company's stock valued at $43,000 after purchasing an additional 513 shares in the last quarter. 96.60% of the stock is owned by institutional investors.

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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