CoStar Group (NASDAQ:CSGP) Announces Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• CoStar Group beat quarterly expectations: The company reported adjusted EPS of $0.38, topping the $0.34 consensus estimate, while revenue reached $952 million versus expectations of $945.82 million.
• Shares declined during Tuesday trading to $32.01, despite the earnings beat. The stock trades at a high 168.48 P/E ratio and remains well below its 12-month high of $78.95.
• Analyst sentiment is mixed: CoStar has an average “Hold” rating and a consensus price target of $40.11, while CEO Andrew Florance purchased approximately $2.49 million worth of shares.

CoStar Group (NASDAQ:CSGP - Get Free Report) issued its quarterly earnings results on Tuesday. The technology company reported $0.38 EPS for the quarter, beating the consensus estimate of $0.34 by $0.04, FiscalAI reports. The firm had revenue of $952.00 million during the quarter, compared to analysts' expectations of $945.82 million. CoStar Group had a return on equity of 3.74% and a net margin of 2.08%.

CoStar Group Stock Performance

Shares of NASDAQ CSGP traded down $1.69 during midday trading on Tuesday, hitting $32.01. 6,561,580 shares of the company's stock were exchanged, compared to its average volume of 6,992,647. The company has a quick ratio of 2.21, a current ratio of 2.21 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $12.97 billion, a PE ratio of 168.48, a price-to-earnings-growth ratio of 0.86 and a beta of 0.80. CoStar Group has a 12 month low of $25.89 and a 12 month high of $78.95. The company's 50 day moving average price is $30.52 and its 200 day moving average price is $37.73.

Insiders Place Their Bets

In related news, CEO Andrew C. Florance acquired 83,300 shares of the firm's stock in a transaction on Tuesday, August 4th. The shares were purchased at an average cost of $29.89 per share, for a total transaction of $2,489,837.00. Following the completion of the acquisition, the chief executive officer directly owned 1,806,165 shares in the company, valued at approximately $53,986,271.85. This trade represents a 4.83% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Cynthia Cammett Cann sold 4,788 shares of the stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $30.78, for a total transaction of $147,374.64. Following the completion of the transaction, the chief accounting officer directly owned 18,822 shares in the company, valued at $579,341.16. The trade was a 20.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.18% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of brokerages have recently issued reports on CSGP. Needham & Company LLC reiterated a "buy" rating and set a $40.00 price objective on shares of CoStar Group in a research note on Tuesday, October 6th. Wall Street Zen cut shares of CoStar Group from a "buy" rating to a "hold" rating in a research note on Sunday, August 2nd. William Blair downgraded shares of CoStar Group from an "outperform" rating to a "market perform" rating in a report on Wednesday, July 29th. Citigroup lowered shares of CoStar Group from a "market outperform" rating to a "neutral" rating and dropped their price target for the stock from $70.00 to $33.00 in a research report on Wednesday, July 29th. Finally, JPMorgan Chase & Co. cut their price target on shares of CoStar Group from $58.00 to $52.00 and set an "overweight" rating for the company in a research note on Wednesday, July 29th. Nine equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $40.11.

CoStar Group Company Profile

CoStar Group, Inc is a provider of information, analytics, and online marketplaces for the commercial and residential real estate industries. The company collects, analyzes, and distributes property and market data to real estate professionals, investors, lenders, and other businesses.

Its brands and services include CoStar, which offers commercial real estate data and research; LoopNet, a marketplace for commercial property listings; Apartments.com, a rental housing marketplace; and Homes.com, a residential real estate platform.

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