Needham & Company LLC Lowers CoStar Group (NASDAQ:CSGP) Price Target to $40.00

Key Points

• Needham lowered CoStar Group’s price target from $50 to $40 but maintained a “buy” rating, implying 31.88% upside from the prior close.
• Analyst sentiment is mixed: 11 analysts rate the stock a buy, seven hold, and two sell, resulting in a consensus “hold” rating and average price target of $46.17.
• CoStar exceeded quarterly EPS expectations and grew revenue 18.4% year over year to $925 million, but its third-quarter EPS and revenue guidance came in below consensus estimates.

CoStar Group (NASDAQ:CSGP - Get Free Report) had its target price lowered by analysts at Needham & Company LLC from $50.00 to $40.00 in a research report issued on Wednesday, Marketbeat reports. The firm presently has a "buy" rating on the technology company's stock. Needham & Company LLC's price objective would indicate a potential upside of 31.88% from the company's previous close.

Several other equities research analysts have also issued reports on the stock. Benchmark started coverage on shares of CoStar Group in a research note on Thursday, June 4th. They issued a "buy" rating and a $45.00 price objective for the company. Robert W. Baird set a $34.00 target price on CoStar Group and gave the company a "neutral" rating in a report on Tuesday, July 14th. Wells Fargo & Company set a $26.00 price target on CoStar Group and gave the stock an "underweight" rating in a research report on Wednesday, June 24th. William Blair reissued a "market perform" rating on shares of CoStar Group in a report on Wednesday. Finally, Bank of America decreased their target price on CoStar Group from $42.00 to $37.00 and set a "neutral" rating for the company in a research report on Tuesday, May 19th. Eleven equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $46.17.

CoStar Group Trading Up 4.0%

Shares of NASDAQ CSGP opened at $30.33 on Wednesday. The business has a 50 day simple moving average of $30.83 and a 200 day simple moving average of $40.64. CoStar Group has a 52 week low of $26.68 and a 52 week high of $97.43. The stock has a market cap of $12.39 billion, a price-to-earnings ratio of 505.58, a PEG ratio of 0.75 and a beta of 0.74. The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.20 and a current ratio of 2.20.

CoStar Group (NASDAQ:CSGP - Get Free Report) last posted its earnings results on Tuesday, July 28th. The technology company reported $0.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.29 by $0.03. The firm had revenue of $925.00 million during the quarter, compared to analysts' expectations of $928.81 million. CoStar Group had a net margin of 0.74% and a return on equity of 2.90%. The company's revenue was up 18.4% compared to the same quarter last year. During the same period in the previous year, the company earned $0.17 earnings per share. CoStar Group has set its Q3 2026 guidance at 0.310-0.340 EPS and its FY 2026 guidance at 1.320-1.390 EPS. On average, research analysts predict that CoStar Group will post 1.03 earnings per share for the current fiscal year.

Insider Transactions at CoStar Group

In other CoStar Group news, CEO Andrew C. Florance purchased 71,430 shares of the business's stock in a transaction on Friday, May 1st. The stock was purchased at an average price of $35.20 per share, for a total transaction of $2,514,336.00. Following the completion of the purchase, the chief executive officer directly owned 1,722,865 shares in the company, valued at approximately $60,644,848. This trade represents a 4.33% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 1.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Integrated Wealth Concepts LLC raised its stake in shares of CoStar Group by 9.8% in the first quarter. Integrated Wealth Concepts LLC now owns 4,789 shares of the technology company's stock valued at $379,000 after acquiring an additional 426 shares during the last quarter. NewEdge Advisors LLC raised its position 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 during the last quarter. Jones Financial Companies Lllp boosted its stake in CoStar Group by 860.7% in the first quarter. Jones Financial Companies Lllp now owns 12,691 shares of the technology company's stock worth $1,006,000 after purchasing an additional 11,370 shares in the last quarter. Empowered Funds LLC boosted its stake in CoStar Group by 9.2% in the first quarter. Empowered Funds LLC now owns 7,941 shares of the technology company's stock worth $629,000 after purchasing an additional 666 shares in the last quarter. Finally, Woodline Partners LP grew its holdings in shares of CoStar Group by 44.6% during the first quarter. Woodline Partners LP now owns 35,604 shares of the technology company's stock worth $2,821,000 after purchasing an additional 10,984 shares during the last quarter. 96.60% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about CoStar Group

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

• Positive Sentiment: CoStar reported second-quarter adjusted earnings of $0.32 per share, above the $0.28–$0.29 analyst consensus and up from $0.17 a year earlier. Revenue rose 18.4% year over year to $925 million, while net income increased sharply and adjusted EBITDA more than doubled, signaling improving profitability. CoStar Group Q2 2026 Results
• Positive Sentiment: Net new bookings reached $69 million, up 3% from the prior quarter, supporting continued demand across CoStar’s real estate marketplaces, information and analytics businesses. Management described the results as a profitability inflection. CoStar Group Q2 2026 Earnings
• Positive Sentiment: Full-year 2026 adjusted EPS guidance of $1.32–$1.39 is above the roughly $1.29 analyst estimate, potentially reinforcing the longer-term earnings-growth story.
• Neutral Sentiment: Management’s second-quarter revenue was slightly below expectations, despite the strong year-over-year growth rate. The company also continues to trade well below its 52-week high, which may be encouraging bargain hunting and speculative buying ahead of earnings.
• Negative Sentiment: Third-quarter guidance was below consensus: adjusted EPS of $0.31–$0.34 versus $0.36 expected, and revenue of $935–$945 million versus approximately $970 million expected. The softer near-term outlook may limit the stock’s upside and explains the mixed market reaction. CoStar Q2 Earnings and Q3 Guidance

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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