Wolfe Research Initiates Coverage on CoStar Group (NASDAQ:CSGP)

Key Points

• Wolfe Research has initiated coverage on CoStar Group, assigning an "outperform" rating and a price target of $105.00, suggesting a potential upside of 19.04% from the current stock price.
• CoStar Group reported earnings exceeding analysts' expectations with $0.17 EPS for the last quarter, alongside a revenue of $781.30 million, marking a 15.2% increase year-over-year.
• Institutional investors own 96.60% of CoStar Group's stock, reflecting strong interest and investment from major firms like Vanguard and Bamco.

Wolfe Research began coverage on shares of CoStar Group (NASDAQ:CSGP - Get Free Report) in a research note issued on Wednesday,Briefing.com Automated Import reports. The brokerage set an "outperform" rating and a $105.00 price target on the technology company's stock. Wolfe Research's price objective indicates a potential upside of 19.04% from the stock's current price.

A number of other research firms have also recently commented on CSGP. William Blair restated an "outperform" rating on shares of CoStar Group in a report on Wednesday, July 23rd. Stephens upgraded shares of CoStar Group to a "strong-buy" rating and set a $105.00 price target for the company in a report on Monday, June 16th. Robert W. Baird raised their price target on shares of CoStar Group from $100.00 to $105.00 and gave the stock an "outperform" rating in a report on Wednesday, July 23rd. Keefe, Bruyette & Woods raised their price target on shares of CoStar Group from $95.00 to $100.00 and gave the stock an "outperform" rating in a report on Thursday, July 17th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of CoStar Group from $87.00 to $101.00 and gave the company an "overweight" rating in a report on Wednesday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, CoStar Group has a consensus rating of "Moderate Buy" and an average target price of $94.15.

CoStar Group Price Performance

Shares of NASDAQ CSGP opened at $88.20 on Wednesday. CoStar Group has a twelve month low of $68.26 and a twelve month high of $97.43. The firm has a fifty day simple moving average of $88.32 and a 200 day simple moving average of $81.39. The company has a market capitalization of $37.37 billion, a PE ratio of 351.89, a P/E/G ratio of 4.36 and a beta of 0.87. The company has a quick ratio of 5.83, a current ratio of 5.83 and a debt-to-equity ratio of 0.12.

CoStar Group (NASDAQ:CSGP - Get Free Report) last announced its earnings results on Tuesday, July 22nd. The technology company reported $0.17 earnings per share for the quarter, topping analysts' consensus estimates of $0.14 by $0.03. CoStar Group had a net margin of 3.57% and a return on equity of 2.88%. The business had revenue of $781.30 million during the quarter, compared to the consensus estimate of $772.06 million. During the same quarter last year, the firm earned $0.15 earnings per share. CoStar Group's quarterly revenue was up 15.2% on a year-over-year basis. CoStar Group has set its FY 2025 guidance at 0.780-0.800 EPS. Q3 2025 guidance at 0.150-0.17 EPS. On average, sell-side analysts forecast that CoStar Group will post 0.94 EPS for the current year.

Insider Activity at CoStar Group

In other news, insider Frederick G. Saint sold 25,000 shares of the business's stock in a transaction that occurred on Thursday, August 28th. The shares were sold at an average price of $90.33, for a total value of $2,258,250.00. Following the sale, the insider owned 293,103 shares of the company's stock, valued at $26,475,993.99. The trade was a 7.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Cynthia Cammett Cann sold 2,033 shares of the company's stock in a transaction that occurred on Monday, July 28th. The stock was sold at an average price of $92.85, for a total transaction of $188,764.05. Following the sale, the chief accounting officer directly owned 25,771 shares in the company, valued at $2,392,837.35. This trade represents a 7.31% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 52,033 shares of company stock worth $4,777,764. Insiders own 1.09% of the company's stock.

Institutional Investors Weigh In On CoStar Group

A number of large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in CoStar Group by 0.6% in the 2nd quarter. Vanguard Group Inc. now owns 68,847,483 shares of the technology company's stock worth $5,535,338,000 after acquiring an additional 420,772 shares during the last quarter. Bamco Inc. NY boosted its stake in shares of CoStar Group by 3.4% during the 2nd quarter. Bamco Inc. NY now owns 19,679,935 shares of the technology company's stock valued at $1,582,267,000 after purchasing an additional 647,413 shares in the last quarter. State Street Corp boosted its stake in shares of CoStar Group by 0.9% during the 2nd quarter. State Street Corp now owns 17,732,968 shares of the technology company's stock valued at $1,425,731,000 after purchasing an additional 158,539 shares in the last quarter. Geode Capital Management LLC lifted its position in CoStar Group by 2.4% during the 2nd quarter. Geode Capital Management LLC now owns 12,357,840 shares of the technology company's stock valued at $989,905,000 after acquiring an additional 290,404 shares during the period. Finally, Baillie Gifford & Co. lifted its position in CoStar Group by 6.6% during the 1st quarter. Baillie Gifford & Co. now owns 8,436,199 shares of the technology company's stock valued at $668,400,000 after acquiring an additional 524,601 shares during the period. Institutional investors own 96.60% of the company's stock.

About CoStar Group

CoStar Group, Inc provides information, analytics, and online marketplace services to the commercial real estate, hospitality, residential, and related professionals industries in the United States, Canada, Europe, the Asia Pacific, and Latin America. The company offers CoStar Property that provides inventory of office, industrial, retail, multifamily, hospitality, and student housing properties and land; CoStar Sales, a robust database of comparable commercial real estate sales transactions; CoStar Market Analytics to view and report on aggregated market and submarket trends; and CoStar Tenant, an online business-to-business prospecting and analytical tool that provides tenant information.

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