Keefe, Bruyette & Woods Has Lowered Expectations for CoStar Group (NASDAQ:CSGP) Stock Price

Key Points

• Keefe, Bruyette & Woods lowered its price target to $50 (from $57) while keeping an "outperform" rating; several other firms have trimmed targets, leaving a MarketBeat consensus of "Moderate Buy" with an average target of $64.71.
• Q1 beat: CoStar reported $0.23 EPS vs. $0.18 consensus and $897M revenue (+22.5% YoY), and management raised FY2026 adjusted EBITDA guidance to $780–$820M with Q2/FY EPS guidance above prior consensus.
• The board authorized a $1.5 billion share repurchase (up to 5.3% of shares) and insiders bought stock, but investor concerns about Homes.com spending, valuation, and AI/competitive risks have weighed on the share price.

CoStar Group (NASDAQ:CSGP - Get Free Report) had its price objective lowered by analysts at Keefe, Bruyette & Woods from $57.00 to $50.00 in a report released on Wednesday,Benzinga reports. The firm currently has an "outperform" rating on the technology company's stock. Keefe, Bruyette & Woods' target price indicates a potential upside of 45.82% from the company's current price.

Several other equities analysts have also recently issued reports on CSGP. The Goldman Sachs Group dropped their price target on CoStar Group from $73.00 to $63.00 and set a "buy" rating on the stock in a research report on Thursday, March 19th. William Blair restated an "outperform" rating on shares of CoStar Group in a research report on Tuesday, March 3rd. Royal Bank Of Canada dropped their price target on CoStar Group from $75.00 to $57.00 and set a "sector perform" rating on the stock in a research report on Wednesday, February 25th. Jefferies Financial Group upgraded CoStar Group from a "hold" rating to a "buy" rating and set a $67.00 price target on the stock in a research report on Friday, February 20th. Finally, BTIG Research restated a "buy" rating and issued a $55.00 price target on shares of CoStar Group in a research report on Wednesday. Twelve research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $64.71.

CoStar Group Stock Performance

CSGP stock traded down $1.67 during trading on Wednesday, hitting $34.29. The company had a trading volume of 2,926,748 shares, compared to its average volume of 6,678,857. The firm has a market cap of $14.39 billion, a PE ratio of 3,388.29, a price-to-earnings-growth ratio of 0.94 and a beta of 0.92. CoStar Group has a 1-year low of $33.31 and a 1-year high of $97.43. The firm has a 50-day moving average price of $42.37 and a 200-day moving average price of $57.36. The company has a quick ratio of 2.84, a current ratio of 2.84 and a debt-to-equity ratio of 0.12.

CoStar Group (NASDAQ:CSGP - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The technology company reported $0.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.05. The firm had revenue of $897.00 million for the quarter, compared to analysts' expectations of $897.69 million. CoStar Group had a return on equity of 2.53% and a net margin of 0.23%.The firm's revenue for the quarter was up 22.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.04) EPS. 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 expect that CoStar Group will post 0.96 earnings per share for the current year.

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

Insiders Place Their Bets

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

Institutional Investors Weigh In On CoStar Group

A number of institutional investors have recently added to or reduced their stakes in CSGP. Integrated Wealth Concepts LLC boosted its holdings in CoStar Group by 9.8% in the 1st quarter. Integrated Wealth Concepts LLC now owns 4,789 shares of the technology company's stock valued at $379,000 after purchasing an additional 426 shares in the last quarter. NewEdge Advisors LLC boosted its holdings in CoStar Group by 727.5% in the 1st quarter. NewEdge Advisors LLC now owns 1,473 shares of the technology company's stock valued at $117,000 after purchasing an additional 1,295 shares in the last quarter. Jones Financial Companies Lllp boosted its holdings in CoStar Group by 860.7% in the 1st quarter. Jones Financial Companies Lllp now owns 12,691 shares of the technology company's stock valued at $1,006,000 after purchasing an additional 11,370 shares in the last quarter. Empowered Funds LLC boosted its stake in shares of CoStar Group by 9.2% during the 1st quarter. Empowered Funds LLC now owns 7,941 shares of the technology company's stock worth $629,000 after acquiring an additional 666 shares in the last quarter. Finally, Woodline Partners LP boosted its stake in shares of CoStar Group by 44.6% during the 1st quarter. Woodline Partners LP now owns 35,604 shares of the technology company's stock worth $2,821,000 after acquiring an additional 10,984 shares in the last quarter. Hedge funds and other institutional investors own 96.60% of the company's stock.

Key Stories Impacting CoStar Group

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

• Positive Sentiment: Q1 beat and revenue growth — CoStar reported $0.23 adjusted EPS (vs. $0.18 consensus) and $897M revenue, +23% YoY; profitability (Adjusted EBITDA) improved materially. These results support the narrative of recovering margins and top-line momentum. CoStar Group Q1 2026 Revenue Grows 23% Year-over-Year
• Positive Sentiment: Raised adjusted EBITDA outlook — Management increased FY2026 Adjusted EBITDA guidance to $780M–$820M and set Q2/FY EPS guidance above prior consensus, which is supportive for margin-normalization expectations. Costar raises 2026 adjusted EBITDA outlook
• Positive Sentiment: Apartments.com rent data shows demand resilience — Apartments.com reported modest national rent growth (+0.2% in April) and continued positive monthly trends, supporting marketplace revenue potential for CoStar’s rental-related businesses. Apartments.com Releases Multifamily Rent Growth Report for April 2026
• Neutral Sentiment: Office market outlook stabilizing — CoStar projects U.S. office vacancy to remain near 14% through 2026 before slowly declining, which removes some downside tail risk but is not an immediate uplift to growth. CoStar Projects Steady U.S. Office Vacancy Through 2026
• Neutral Sentiment: Corporate communications shift — CoStar said it will use its website as a primary investor information channel; useful for transparency but unlikely to move fundamentals. CoStar Highlights Website as Key Investor Information Channel
• Negative Sentiment: Analyst target revisions and mixed reception — Needham trimmed its price target (from $60 to $50) despite keeping a buy, while other firms left higher targets; divergent analyst views add near-term uncertainty and can pressure the stock. Benzinga analyst notes
• Negative Sentiment: Investor skepticism on Homes.com spending and valuation — Commentary and intraday analysis highlight concerns that continued investment in Homes.com may delay free cash flow expansion; combined with an extreme trailing P/E and recent pre-earnings positioning, this drove selling pressure. CoStar Group slides as investors position ahead of earnings
• Negative Sentiment: AI and competitive concerns flagged by media — Coverage noting “Rising AI fears” and competitive risks has added to sentiment headwinds, especially for a growth stock priced for long-term execution. Rising AI Fears Hurt CoStar Group in Q1

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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