JPMorgan Chase & Co. Has Lowered Expectations for CoStar Group (NASDAQ:CSGP) Stock Price

Key Points

• JPMorgan lowered its price target on CoStar Group from $82 to $70 while maintaining an "overweight" rating, part of a broader wave of analyst target cuts.
• Shares fell about 5.1% to $34.14 on heavy volume; the stock has a consensus rating of "Moderate Buy" with a consensus price target of $61.18.
• CoStar beat Q1 EPS estimates and reported revenue up ~22.5%, raised FY2026 adjusted EBITDA guidance and announced a $1.5 billion share buyback, though investors are cautious about Homes.com spending affecting near‑term margins.

CoStar Group (NASDAQ:CSGP - Get Free Report) had its price objective decreased by analysts at JPMorgan Chase & Co. from $82.00 to $70.00 in a research note issued on Wednesday,Benzinga reports. The firm presently has an "overweight" rating on the technology company's stock. JPMorgan Chase & Co.'s target price suggests a potential upside of 105.04% from the stock's previous close.

A number of other brokerages also recently issued reports on CSGP. Royal Bank Of Canada lowered their price objective on CoStar Group from $75.00 to $57.00 and set a "sector perform" rating for the company in a research report on Wednesday, February 25th. Robert W. Baird decreased their target price on CoStar Group from $73.00 to $56.00 and set an "outperform" rating for the company in a research note on Monday, April 13th. The Goldman Sachs Group decreased their target price on CoStar Group from $73.00 to $63.00 and set a "buy" rating for the company in a research note on Thursday, March 19th. BMO Capital Markets decreased their target price on CoStar Group from $72.00 to $53.00 and set a "market perform" rating for the company in a research note on Thursday, February 26th. Finally, Citigroup decreased their target price on CoStar Group from $100.00 to $70.00 and set a "buy" rating for the company in a research note on Thursday, April 23rd. Twelve investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $61.18.

CoStar Group Trading Down 5.1%

Shares of CSGP traded down $1.82 during mid-day trading on Wednesday, reaching $34.14. 15,324,055 shares of the company were exchanged, compared to its average volume of 6,853,700. CoStar Group has a 52 week low of $33.31 and a 52 week high of $97.43. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.84 and a current ratio of 2.84. The stock has a market capitalization of $14.33 billion, a PE ratio of 3,417.42, a PEG ratio of 0.94 and a beta of 0.92. The business has a 50 day simple moving average of $42.37 and a two-hundred day simple moving average of $57.36.

CoStar Group (NASDAQ:CSGP - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The technology company reported $0.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.18 by $0.05. CoStar Group had a return on equity of 2.53% and a net margin of 0.23%.The company had revenue of $897.00 million during the quarter, compared to the consensus estimate of $897.69 million. During the same period last year, the company earned ($0.04) earnings per share. The firm's revenue was up 22.5% compared to the same quarter last year. 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. On average, analysts predict that CoStar Group will post 0.96 earnings per share for the current fiscal year.

CoStar Group announced that its Board of Directors has approved a share buyback plan on Wednesday, January 7th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the technology company to buy up to 5.3% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Insider Activity at CoStar Group

In other news, Director Louise S. Sams acquired 1,000 shares of the firm's stock in a transaction dated Friday, March 6th. The stock was purchased at an average price of $48.36 per share, for a total transaction of $48,360.00. Following the completion of the acquisition, the director directly owned 20,409 shares in the company, valued at $986,979.24. The trade was a 5.15% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. 1.09% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On CoStar Group

Institutional investors have recently modified their holdings of the company. Quent Capital LLC acquired a new position in shares of CoStar Group during the third quarter worth approximately $26,000. Reflection Asset Management acquired a new position in shares of CoStar Group during the fourth quarter worth approximately $27,000. Manning & Napier Advisors LLC acquired a new position in shares of CoStar Group during the third quarter worth approximately $28,000. Lloyd Advisory Services LLC. acquired a new position in shares of CoStar Group during the fourth quarter worth approximately $29,000. Finally, Westside Investment Management Inc. raised its position in shares of CoStar Group by 100.0% during the third quarter. Westside Investment Management Inc. now owns 360 shares of the technology company's stock worth $30,000 after purchasing an additional 180 shares during the period. 96.60% of the stock is owned by institutional investors and hedge funds.

CoStar Group News Roundup

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

• Positive Sentiment: Q1 beat on profit metrics: CoStar reported adjusted EPS of $0.23 (above consensus $0.18), revenue +23% Y/Y to $897M, Adjusted EBITDA doubled to ~$132M and margins expanded — evidence that core marketplaces and AI engagement are improving monetization. CoStar Group Q1 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall
• Positive Sentiment: Company raised profitability outlook: CoStar increased FY2026 adjusted EBITDA guidance to $780M–$820M and reiterated revenue guidance; management is targeting residential segment profitability in Q2. This signals improving underlying cash profitability. CoStar raises 2026 adjusted EBITDA outlook
• Neutral Sentiment: Guidance modestly above consensus: Q2 EPS guidance of $0.27–$0.30 and FY EPS guidance $1.32–$1.39 are slightly higher than the street, but largely in line with growth expectations — supportive but not radically different from forecasts. Press Release / Slide Deck
• Neutral Sentiment: Macro / market data from CoStar: Company reports steady U.S. office vacancy through 2026 and modest multifamily rent growth — useful data for long-term franchise value but not an immediate stock mover. CoStar Projects Steady U.S. Office Vacancy Apartments.com Rent Growth Report
• Negative Sentiment: Analyst price‑target cuts tempered sentiment today: Multiple firms trimmed targets (Citizens Jmp to $44, Keefe to $50, Needham to $50) despite maintaining buy/outperform ratings — these revisions can reduce near‑term buying pressure. Citizens Jmp PT lowered / TickerReport Analyst notes (Benzinga)
• Negative Sentiment: Investor focus on Homes.com spending vs. near‑term profitability: The market remains skeptical about how much Homes.com and other growth investments will pressure margins before scale benefits appear — a common reason for the "show‑me" reaction to results. Homes.com spending vs profitability analysis

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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