Baillie Gifford & Co. Buys 4,691,543 Shares of CoStar Group, Inc. $CSGP

Key Points

• Baillie Gifford boosted its CoStar stake by 56.9% in Q4, buying 4,691,543 shares to hold 12,933,185 shares (about 3.05% of the company) worth roughly $869.6 million, making CoStar its 27th-largest position (~0.7% of the firm's holdings).
• CoStar beat Q4 estimates with $0.31 EPS versus $0.27 and revenue of $899.9M (up 26.9% YoY), and its board has authorized a $1.5 billion share buyback (up to 5.3% of outstanding shares).
• Analysts maintain a consensus "Moderate Buy" with an average price target of $72.76, while the stock trades near $36.48 and shows an unusually high trailing P/E of 3,651.65, indicating a large gap between price and analyst expectations.

Baillie Gifford & Co. boosted its stake in CoStar Group, Inc. (NASDAQ:CSGP - Free Report) by 56.9% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 12,933,185 shares of the technology company's stock after purchasing an additional 4,691,543 shares during the period. CoStar Group makes up approximately 0.7% of Baillie Gifford & Co.'s holdings, making the stock its 27th largest position. Baillie Gifford & Co. owned about 3.05% of CoStar Group worth $869,627,000 at the end of the most recent reporting period.

A number of other large investors have also added to or reduced their stakes in CSGP. ING Groep NV grew its position in shares of CoStar Group by 1,950.5% during the 3rd quarter. ING Groep NV now owns 128,052 shares of the technology company's stock valued at $10,804,000 after acquiring an additional 121,807 shares during the period. Mirae Asset Global Investments Co. Ltd. grew its position in shares of CoStar Group by 14.1% during the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 171,380 shares of the technology company's stock valued at $14,459,000 after acquiring an additional 21,225 shares during the period. UMB Bank n.a. grew its position in shares of CoStar Group by 51.6% during the 3rd quarter. UMB Bank n.a. now owns 225,305 shares of the technology company's stock valued at $19,009,000 after acquiring an additional 76,720 shares during the period. American Century Companies Inc. grew its position in shares of CoStar Group by 682.3% during the 3rd quarter. American Century Companies Inc. now owns 551,523 shares of the technology company's stock valued at $46,532,000 after acquiring an additional 481,024 shares during the period. Finally, 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 valued at $45,929,000 after acquiring an additional 28,279 shares during the period. Institutional investors own 96.60% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on CSGP. BTIG Research set a $60.00 target price on shares of CoStar Group and gave the company a "buy" rating in a research note on Thursday, February 26th. Zacks Research upgraded shares of CoStar Group from a "strong sell" rating to a "hold" rating in a research note on Monday, March 9th. Bank of America set a $74.00 target price on shares of CoStar Group in a research note on Wednesday, January 7th. Jefferies Financial Group upgraded shares of CoStar Group from a "hold" rating to a "buy" rating and set a $67.00 target price on the stock in a research note on Friday, February 20th. Finally, The Goldman Sachs Group lowered their target price on shares of CoStar Group from $73.00 to $63.00 and set a "buy" rating on the stock in a research note on Thursday, March 19th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, CoStar Group has an average rating of "Moderate Buy" and a consensus price target of $72.76.

Insider Activity

In other CoStar Group news, Director Louise S. Sams bought 1,000 shares of the firm's stock in a transaction dated Friday, March 6th. The shares were purchased at an average cost of $48.36 per share, for a total transaction of $48,360.00. Following the transaction, the director owned 20,409 shares of the company's stock, valued at $986,979.24. This represents a 5.15% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 1.09% of the company's stock.

CoStar Group Price Performance

Shares of CSGP stock opened at $36.48 on Monday. The stock has a market cap of $15.31 billion, a P/E ratio of 3,651.65, a PEG ratio of 0.98 and a beta of 0.92. CoStar Group, Inc. has a 52 week low of $35.77 and a 52 week high of $97.43. 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 company's fifty day simple moving average is $45.15 and its two-hundred day simple moving average is $61.05.

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

CoStar Group announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, January 7th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the technology company to repurchase up to 5.3% of its stock through open market purchases. Stock buyback plans are often a sign that the company's management believes its shares are 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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