Wells Fargo & Company Has Lowered Expectations for CoStar Group (NASDAQ:CSGP) Stock Price

Key Points

• Wells Fargo & Company cut its price target on CoStar from $40 to $33 and maintained an "underweight" rating, joining other analysts who have trimmed targets even as the consensus remains a "Moderate Buy" with a $60.53 mean price objective.
• CoStar reported a Q1 beat (EPS $0.23 vs. $0.18) and 23% revenue growth to $897M, raised its FY2026 adjusted EBITDA outlook and approved a $1.5 billion share buyback, but investor concern about Homes.com spending has pressured the stock despite the stronger results.

CoStar Group (NASDAQ:CSGP - Get Free Report) had its price objective decreased by analysts at Wells Fargo & Company from $40.00 to $33.00 in a research note issued on Thursday,Benzinga reports. The brokerage presently has an "underweight" rating on the technology company's stock. Wells Fargo & Company's price target suggests a potential downside of 1.86% from the company's previous close.

Several other equities analysts have also recently weighed in on the company. BMO Capital Markets dropped their price objective on CoStar Group from $72.00 to $53.00 and set a "market perform" rating for the company in a report on Thursday, February 26th. Deutsche Bank Aktiengesellschaft set a $68.00 target price on CoStar Group in a report on Thursday, January 8th. Citizens Jmp dropped their price target on CoStar Group from $73.00 to $44.00 and set a "market outperform" rating for the company in a research note on Wednesday. The Goldman Sachs Group cut their price objective on shares of CoStar Group from $73.00 to $63.00 and set a "buy" rating for the company in a research report on Thursday, March 19th. Finally, BNP Paribas Exane began coverage on shares of CoStar Group in a research note on Wednesday, January 14th. They set a "neutral" rating and a $64.00 price objective on the stock. Twelve investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, CoStar Group has a consensus rating of "Moderate Buy" and a consensus price target of $60.53.

CoStar Group Stock Performance

NASDAQ CSGP opened at $33.63 on Thursday. The firm has a 50-day moving average price of $42.07 and a two-hundred day moving average price of $57.20. CoStar Group has a 12-month low of $33.31 and a 12-month high of $97.43. The company has a market capitalization of $14.12 billion, a P/E ratio of 3,362.56, a P/E/G ratio of 0.94 and a beta of 0.92. 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 announced its earnings results on Tuesday, April 28th. The technology company reported $0.23 EPS for the quarter, topping the consensus estimate of $0.18 by $0.05. The company had revenue of $897.00 million for the quarter, compared to analysts' expectations of $897.69 million. CoStar Group had a net margin of 0.23% and a return on equity of 2.53%. The business's revenue for the quarter was up 22.5% on a year-over-year basis. During the same period last year, the firm earned ($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. Analysts anticipate that CoStar Group will post 0.96 earnings per share for the current year.

CoStar Group declared that its board has initiated 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 stock through open market purchases. Stock repurchase plans are usually an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In related news, Director Louise S. Sams bought 1,000 shares of the company's stock in a transaction dated Friday, March 6th. The stock was purchased at an average price of $48.36 per share, with a total value of $48,360.00. Following the completion of the acquisition, the director owned 20,409 shares of the company's stock, valued at $986,979.24. The trade was a 5.15% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 1.09% of the company's stock.

Hedge Funds Weigh In On CoStar Group

Institutional investors have recently added to or reduced their stakes in the stock. Quent Capital LLC bought a new stake in shares of CoStar Group during the third quarter worth $26,000. Reflection Asset Management bought a new position in shares of CoStar Group in the 4th quarter valued at $27,000. Manning & Napier Advisors LLC acquired a new stake in shares of CoStar Group during the 3rd quarter valued at $28,000. Lloyd Advisory Services LLC. bought a new stake in CoStar Group during the 4th quarter worth $29,000. Finally, Westside Investment Management Inc. grew its position in CoStar Group by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 360 shares of the technology company's stock worth $30,000 after acquiring an additional 180 shares during the last quarter. 96.60% of the stock is currently 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 EPS and strong revenue growth — CoStar reported $0.23 adj. EPS vs. $0.18 consensus and revenue of $897M (+23% YoY). That helped drive a meaningful improvement in adjusted EBITDA and gross metrics. CoStar Q1 2026 Revenue Grows 23% — BusinessWire
• Positive Sentiment: Raised adjusted EBITDA outlook — management lifted FY2026 adjusted EBITDA to $780–$820M and reiterated revenue guidance, signaling improved margin trajectory and that profitability targets (including residential segment objectives) are on management’s roadmap. CoStar raises 2026 adjusted EBITDA outlook — Seeking Alpha
• Positive Sentiment: Management highlighted residential momentum, Homes.com gains and AI integration as growth drivers — these initiatives (marketplaces + AI engagement) are central to CoStar’s path to higher-margin marketplace revenue. CSGP Q1 deep dive — MSN
• Neutral Sentiment: Industry data releases support steady demand for CoStar’s data/subscription businesses — Apartments.com reported modest rent growth and CoStar revised its U.S. office vacancy outlook to remain steady through 2026 (useful content that sustains marketplace relevance). Apartments.com rent growth report — BusinessWire CoStar office vacancy forecast — BusinessWire
• Negative Sentiment: Analysts trimmed price targets after Q1 — multiple firms (JPMorgan, Citizens/JMP, Keefe, Needham among others) lowered targets, which increases near-term selling pressure despite some firms keeping buy/overweight ratings. Analyst price target changes — Benzinga
• Negative Sentiment: Investor concern over Homes.com spending vs. near-term profitability — commentary and flow into the print show the market is treating CoStar as a “show-me” story; that dynamic likely explains the down move despite the beat and raised EBITDA guide. Investors focused on Homes.com spending — QuiverQuant
• Positive Sentiment: Insider buying noted in filings — recent insider purchases (CEO and other executives) can be read as management confidence in the business and targets. Insider activity noted — QuiverQuant

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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