Zacks Research Upgrades CoStar Group (NASDAQ:CSGP) to Hold

Key Points

• Zacks Research upgraded CoStar Group from a "strong sell" to a "hold", while the analyst consensus remains a Moderate Buy with an average target price of $73.35 despite recent price-target reductions.
• Earnings beat: CoStar reported $0.31 EPS vs. $0.27 expected and $900M revenue (up 26.9% year-over-year), and set Q1 2026 guidance of $0.160–$0.190 with analysts projecting about 0.94 EPS for the fiscal year.
• $1.50 billion buyback authorized (up to 5.3% of shares) and notable insider/institutional buying—while the stock traded near $46.33, down about 4.3%.

CoStar Group (NASDAQ:CSGP - Get Free Report) was upgraded by equities researchers at Zacks Research from a "strong sell" rating to a "hold" rating in a note issued to investors on Monday,Zacks.com reports.

A number of other research analysts have also recently commented on CSGP. Needham & Company LLC reduced their target price on CoStar Group from $80.00 to $60.00 and set a "buy" rating on the stock in a research note on Wednesday, February 25th. Citigroup reissued a "market outperform" rating on shares of CoStar Group in a report on Thursday, January 8th. Keefe, Bruyette & Woods dropped their target price on CoStar Group from $75.00 to $70.00 and set an "outperform" rating for the company in a research report on Wednesday, February 25th. Deutsche Bank Aktiengesellschaft set a $68.00 price objective on shares of CoStar Group in a report on Thursday, January 8th. Finally, BMO Capital Markets cut their price objective on shares of CoStar Group from $72.00 to $53.00 and set a "market perform" rating for the company in a research note on Thursday, February 26th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $73.35.

CoStar Group Trading Down 4.3%

Shares of CSGP stock opened at $46.33 on Monday. The company has a market capitalization of $19.45 billion, a PE ratio of 4,637.64, a price-to-earnings-growth ratio of 1.30 and a beta of 0.89. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.84 and a current ratio of 2.84. The business's fifty day moving average is $55.67 and its 200 day moving average is $68.64. CoStar Group has a 52-week low of $43.16 and a 52-week high of $97.43.

CoStar Group (NASDAQ:CSGP - Get Free Report) last released its quarterly earnings results on Tuesday, February 24th. The technology company reported $0.31 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.04. The firm had revenue of $900.00 million for the quarter, compared to analysts' expectations of $892.22 million. CoStar Group had a return on equity of 2.53% and a net margin of 0.23%.The company's revenue was up 26.9% compared to the same quarter last year. During the same quarter last year, the firm posted $0.26 EPS. CoStar Group has set its Q1 2026 guidance at 0.160-0.190 EPS. On average, equities research analysts anticipate that CoStar Group will post 0.94 EPS for the current fiscal year.

CoStar Group announced that its Board of Directors has authorized a stock buyback plan on Wednesday, January 7th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the technology company to reacquire up to 5.3% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Insider Activity at CoStar Group

In other news, Director Louise S. Sams bought 1,000 shares of the company's stock in a transaction dated Friday, March 6th. The stock was bought at an average cost of $48.36 per share, for a total transaction of $48,360.00. Following the completion of the acquisition, the director owned 20,409 shares in the company, valued at approximately $986,979.24. This trade represents a 5.15% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. 1.09% of the stock is currently owned by insiders.

Hedge Funds Weigh In On CoStar Group

Hedge funds and other institutional investors have recently made changes to their positions in the business. Norges Bank purchased a new position in CoStar Group during the 4th quarter valued at $476,765,000. Baillie Gifford & Co. boosted its stake in shares of CoStar Group by 56.9% during the 4th quarter. Baillie Gifford & Co. now owns 12,933,185 shares of the technology company's stock valued at $869,627,000 after purchasing an additional 4,691,543 shares in the last quarter. Capital International Investors increased its position in shares of CoStar Group by 59.7% during the fourth quarter. Capital International Investors now owns 10,842,010 shares of the technology company's stock valued at $729,020,000 after buying an additional 4,053,456 shares during the period. Viking Global Investors LP bought a new position in CoStar Group in the second quarter worth about $258,773,000. Finally, Goldman Sachs Group Inc. raised its stake in CoStar Group by 70.9% in the fourth quarter. Goldman Sachs Group Inc. now owns 3,751,312 shares of the technology company's stock worth $252,238,000 after buying an additional 1,556,100 shares in the last quarter. Institutional investors own 96.60% of the company's stock.

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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