CoStar Group (NASDAQ:CSGP) Sets New 12-Month Low Following Analyst Downgrade

CoStar Group, Inc. (NASDAQ:CSGP) reached a new 52-week low on Wednesday after BMO Capital Markets lowered their price target on the stock from $72.00 to $53.00. BMO Capital Markets currently has a market perform rating on the stock. CoStar Group traded as low as $43.50 and last traded at $45.7140, with a volume of 2711827 shares traded. The stock had previously closed at $49.15.

CSGP has been the subject of a number of other research reports. The Goldman Sachs Group dropped their price objective on shares of CoStar Group from $84.00 to $73.00 and set a “buy” rating for the company in a research note on Wednesday. Wells Fargo & Company dropped their price target on shares of CoStar Group from $48.00 to $44.00 and set an “underweight” rating for the company in a research report on Wednesday. Citigroup reaffirmed a “market outperform” rating on shares of CoStar Group in a research note on Thursday, January 8th. Robert W. Baird set a $73.00 price objective on shares of CoStar Group in a research note on Wednesday. Finally, Bank of America set a $74.00 target price on CoStar Group in a research report on Wednesday, January 7th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $73.35.

CoStar Group News Roundup

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

• Positive Sentiment: Q4 results and commentary: CoStar reported Q4 EPS of $0.31 (above the $0.27 consensus) and revenue of $900M (above estimates), with revenue up ~27% year‑over‑year and management highlighting strong bookings and digitization progress. This beat helped justify upside expectations for growth. Read More.
• Positive Sentiment: FY‑2026 guidance raised on headline figures: CoStar published FY‑2026 EPS guidance of $1.220–$1.330 and revenue guidance around $3.8B — both cited as above consensus in one release — which supports a constructive longer‑term revenue/margin trajectory if achieved. (Guidance entry provided by company filings/press materials.)
• Positive Sentiment: Data product traction: CoStar research showed meaningful market activity (e.g., London office yield compression in 2025), reinforcing the value of CoStar’s data/analytics franchises and monetization opportunities. Read More.
• Neutral Sentiment: Industry signals: Apartments.com released February rent data showing modest U.S. rent growth — useful macro context for CofStar’s marketplaces but not a direct catalyst. Read More.
• Neutral Sentiment: Short‑interest item looks unreliable: recent short‑interest lines in the feed show zero or NaN values and don’t present a clear short‑squeeze thesis at this time.
• Negative Sentiment: Analyst revisions and target cuts: Multiple firms trimmed price targets after the print (examples include BMO to $53 (market perform), RBC to $57 (sector perform), Wells Fargo to $44 (underweight), Needham to $60 (buy) and Goldman cut its target to $73 while keeping a buy). The wave of cuts and mixed ratings is pressuring sentiment despite the beat. Read More.
• Negative Sentiment: Shares dipped in some coverage despite the beat: several outlets noted the stock fell after the report even with double‑digit growth and a generally upbeat narrative, suggesting the market may be focused on margin/guidance nuance or valuation concerns. Read More.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in CSGP. Vanguard Group Inc. increased its holdings in CoStar Group by 1.8% during the 3rd quarter. Vanguard Group Inc. now owns 70,056,441 shares of the technology company’s stock worth $5,910,662,000 after purchasing an additional 1,208,958 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 buying an additional 647,413 shares during the last quarter. State Street Corp grew its position in shares of CoStar Group by 1.9% during the fourth quarter. State Street Corp now owns 18,632,352 shares of the technology company’s stock worth $1,252,839,000 after buying an additional 348,224 shares in the last quarter. Baillie Gifford & Co. increased its stake in shares of CoStar Group by 56.9% in the fourth quarter. Baillie Gifford & Co. now owns 12,933,185 shares of the technology company’s stock worth $869,627,000 after buying an additional 4,691,543 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in CoStar Group by 2.4% in the second 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 in the last quarter. 96.60% of the stock is currently owned by hedge funds and other institutional investors.

CoStar Group Stock Up 0.5%

The stock has a market capitalization of $19.07 billion, a P/E ratio of 4,504.50, a P/E/G ratio of 1.18 and a beta of 0.84. The company has a current ratio of 2.84, a quick ratio of 3.12 and a debt-to-equity ratio of 0.12. The stock’s 50 day simple moving average is $58.83 and its 200 day simple moving average is $71.26.

CoStar Group (NASDAQ:CSGP) last issued its earnings results on Tuesday, February 24th. The technology company reported $0.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.27 by $0.04. The business had revenue of $900.00 million for the quarter, compared to analyst estimates of $892.22 million. CoStar Group had a net margin of 0.23% and a return on equity of 2.53%. The company’s revenue for the quarter was up 26.9% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.26 EPS. CoStar Group has set its Q1 2026 guidance at 0.160-0.190 EPS. As a group, research analysts predict that CoStar Group, Inc. will post 0.94 EPS for the current fiscal year.

CoStar Group declared that its board has approved a share repurchase program on Wednesday, January 7th that permits the company to buyback $1.50 billion in outstanding shares. This buyback authorization permits the technology company to buy up to 5.3% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

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.