Robert W. Baird Downgrades CoStar Group (NASDAQ:CSGP) to Hold

Key Points

• Robert W. Baird downgraded CoStar Group from strong-buy to hold, adding to a mixed analyst outlook that still includes a consensus Moderate Buy rating and an average target price of $51.50.
• CoStar Group shares were trading at $27.68, near their 52-week low of $26.68 and well below the 200-day moving average of $43.29, highlighting recent stock weakness.
• The company recently reported Q1 earnings of $0.23 per share, beating estimates, with revenue of $897 million up 22.5% year over year; CEO Andrew C. Florance also bought 71,430 shares in early May.

CoStar Group (NASDAQ:CSGP - Get Free Report) was downgraded by Robert W. Baird from a "strong-buy" rating to a "hold" rating in a research note issued on Tuesday,Zacks.com reports.

Other equities research analysts also recently issued research reports about the company. Royal Bank Of Canada set a $34.00 price objective on CoStar Group and gave the company a "sector perform" rating in a report on Monday. BTIG Research reiterated a "buy" rating and issued a $55.00 target price on shares of CoStar Group in a research report on Wednesday, April 29th. Stephens cut their price target on CoStar Group from $50.00 to $42.00 and set an "overweight" rating on the stock in a research note on Monday, May 4th. JPMorgan Chase & Co. reduced their price target on CoStar Group from $82.00 to $70.00 and set an "overweight" rating on the stock in a report on Wednesday, April 29th. Finally, Bank of America lowered their price objective on CoStar Group from $42.00 to $37.00 and set a "neutral" rating for the company in a research note on Tuesday, May 19th. Twelve equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, CoStar Group has a consensus rating of "Moderate Buy" and an average target price of $51.50.

CoStar Group Price Performance

CSGP stock opened at $27.68 on Tuesday. The stock has a market cap of $11.30 billion, a price-to-earnings ratio of 461.41, a P/E/G ratio of 0.74 and a beta of 0.74. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.20 and a quick ratio of 2.20. The company has a 50 day simple moving average of $31.68 and a 200 day simple moving average of $43.29. CoStar Group has a 1 year low of $26.68 and a 1 year high of $97.43.

CoStar Group (NASDAQ:CSGP - Get Free Report) last issued its earnings results on Tuesday, April 28th. The technology company reported $0.23 earnings per share for the quarter, beating analysts' consensus estimates of $0.18 by $0.05. The firm had revenue of $897.00 million for the quarter, compared to analyst estimates of $896.73 million. CoStar Group had a net margin of 0.74% and a return on equity of 2.90%. The company's quarterly revenue was up 22.5% on a year-over-year basis. During the same quarter last year, the business posted ($0.04) earnings per share. 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. Research analysts anticipate that CoStar Group will post 1.03 EPS for the current fiscal year.

Insider Activity at CoStar Group

In related news, CEO Andrew C. Florance purchased 71,430 shares of the firm's stock in a transaction dated Friday, May 1st. The stock was bought at an average price of $35.20 per share, with a total value of $2,514,336.00. Following the completion of the purchase, the chief executive officer owned 1,722,865 shares in the company, valued at approximately $60,644,848. This represents a 4.33% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 1.18% of the company's stock.

Hedge Funds Weigh In On CoStar Group

A number of hedge funds and other institutional investors have recently made changes to their positions in CSGP. Reflection Asset Management bought a new position in CoStar Group during the fourth quarter worth $27,000. Lloyd Advisory Services LLC. bought a new stake in CoStar Group during the fourth quarter valued at $29,000. DV Equities LLC bought a new stake in CoStar Group during the fourth quarter valued at $40,000. IFP Advisors Inc grew its holdings in CoStar Group by 329.4% during the 4th quarter. IFP Advisors Inc now owns 614 shares of the technology company's stock worth $41,000 after acquiring an additional 471 shares during the period. Finally, Caitong International Asset Management Co. Ltd grew its holdings in CoStar Group by 25,650.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 515 shares of the technology company's stock worth $43,000 after acquiring an additional 513 shares during the period. 96.60% of the stock is owned by institutional investors and hedge funds.

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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