CoStar Group (NASDAQ:CSGP) to Buyback $1.50 billion in Outstanding Shares

CoStar Group (NASDAQ:CSGP) declared that its board has initiated a share buyback program on Wednesday, January 7th, RTT News reports. The company plans to buyback $1.50 billion in shares. This buyback authorization permits the technology company to repurchase up to 5.3% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board believes its shares are undervalued.

CoStar Group Trading Down 0.5%

NASDAQ CSGP opened at $61.36 on Friday. CoStar Group has a 12 month low of $60.19 and a 12 month high of $97.43. The company has a current ratio of 3.12, a quick ratio of 3.12 and a debt-to-equity ratio of 0.12. The stock has a 50 day moving average of $67.12 and a 200-day moving average of $78.96. The company has a market cap of $26.01 billion, a PE ratio of 1,227.20, a PEG ratio of 1.33 and a beta of 0.84.

CoStar Group (NASDAQ:CSGP) last posted its quarterly earnings results on Tuesday, October 28th. The technology company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.19 by $0.04. The firm had revenue of $833.60 million for the quarter, compared to analyst estimates of $823.62 million. CoStar Group had a net margin of 0.66% and a return on equity of 2.45%. The company’s quarterly revenue was up 20.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.22 earnings per share. CoStar Group has set its Q4 2025 guidance at 0.260-0.280 EPS and its FY 2025 guidance at 0.820-0.840 EPS. On average, equities research analysts anticipate that CoStar Group will post 0.94 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the company. BMO Capital Markets cut their target price on CoStar Group from $77.00 to $72.00 and set a “market perform” rating on the stock in a research note on Thursday. Wells Fargo & Company reiterated an “underweight” rating and issued a $55.00 price objective (down from $60.00) on shares of CoStar Group in a report on Thursday. Citigroup reissued a “market outperform” rating on shares of CoStar Group in a research report on Thursday. Royal Bank Of Canada restated a “sector perform” rating and set a $91.00 target price on shares of CoStar Group in a report on Thursday, October 9th. Finally, Jefferies Financial Group raised shares of CoStar Group to a “hold” rating in a research report on Wednesday, October 29th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, CoStar Group presently has an average rating of “Moderate Buy” and an average price target of $86.38.

CoStar Group News Summary

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

• Positive Sentiment: Board authorized a $1.5 billion share buyback (up to ~5.3% of shares outstanding), signaling management thinks the stock is undervalued and returning capital to shareholders. RTT News – CoStar Buyback
• Positive Sentiment: Company issued a full-year 2026 and medium-term outlook calling for significant adjusted-EBITDA expansion and updated capital-allocation priorities (board- and Capital Allocation Committee-approved), which management frames as improving margins and shareholder alignment. BusinessWire – FY2026 Outlook
• Positive Sentiment: Some sell‑side support remains: William Blair reiterated a Buy rating, arguing conservative guidance plus improved capital allocation creates a buying opportunity. TipRanks – William Blair Reiterate
• Neutral Sentiment: FY2026 guidance: EPS range of $1.220–$1.330 and revenue guidance near $3.8B — roughly in line with consensus but presented conservatively; investors will watch execution vs. the midpoint. BusinessWire – Guidance
• Neutral Sentiment: Apartments.com reported U.S. apartment rents ticked up +0.1% month-over-month in Dec 2025 (national average $1,708), reversing several months of flat/negative monthly readings — modestly positive for recurring marketplace revenue but not a dramatic change. BusinessWire – Apartments.com Rent Report
• Negative Sentiment: Multiple sell‑side firms lowered price targets this morning (Goldman Sachs to $84, Needham to $80, BMO to $72, Citizens to $78). While many retained Buy/Outperform views, the cuts increase near-term selling pressure and signal reduced upside from prior forecasts. Benzinga – PT Cuts StreetInsider – BMO PT Cut
• Negative Sentiment: CoStar plans to reduce net investment in Homes.com by at least $100M per year through 2030; Barron’s reports investors reacted negatively to the long timeline to profitability, raising questions about near-term returns from that asset. Barron’s – Homes.com Profitability

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.