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

CoStar Group (NASDAQ:CSGP) had its price target dropped by equities research analysts at Wells Fargo & Company from $48.00 to $44.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has an “underweight” rating on the technology company’s stock. Wells Fargo & Company‘s target price indicates a potential downside of 2.22% from the stock’s previous close.

Other research analysts also recently issued reports about the stock. Weiss Ratings restated a “sell (d)” rating on shares of CoStar Group in a research report on Monday, December 29th. Deutsche Bank Aktiengesellschaft set a $68.00 price objective on CoStar Group in a report on Thursday, January 8th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $84.00 target price on shares of CoStar Group in a report on Wednesday, January 14th. Citizens Jmp reduced their price target on CoStar Group from $78.00 to $73.00 and set a “market outperform” rating for the company in a research report on Wednesday. Finally, Citigroup reissued a “market outperform” rating on shares of CoStar Group in a report on Thursday, January 8th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, CoStar Group presently has an average rating of “Moderate Buy” and a consensus price target of $73.35.

CoStar Group Price Performance

Shares of NASDAQ CSGP opened at $45.00 on Wednesday. The business’s 50 day moving average price is $58.83 and its 200 day moving average price is $71.26. The firm has a market cap 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. CoStar Group has a 52 week low of $43.17 and a 52 week high of $97.43. The company has a quick ratio of 3.12, a current ratio of 2.84 and a debt-to-equity ratio of 0.12.

CoStar Group (NASDAQ:CSGP) last posted its quarterly earnings results on Tuesday, February 24th. The technology company reported $0.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.27 by $0.04. The company had revenue of $900.00 million during 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%. CoStar Group’s revenue for the quarter was up 26.9% compared to the same quarter last year. During the same period last year, the firm posted $0.26 EPS. CoStar Group has set its Q1 2026 guidance at 0.160-0.190 EPS. On average, sell-side analysts expect that CoStar Group will post 0.94 earnings per share for the current year.

CoStar Group declared that its Board of Directors has initiated a share repurchase program on Wednesday, January 7th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the technology company to reacquire up to 5.3% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.

Institutional Trading of CoStar Group

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Integrated Wealth Concepts LLC grew its stake in CoStar Group by 9.8% in the 1st quarter. Integrated Wealth Concepts LLC now owns 4,789 shares of the technology company’s stock valued at $379,000 after acquiring an additional 426 shares during the period. NewEdge Advisors LLC grew its position in shares of CoStar Group by 727.5% in the first quarter. NewEdge Advisors LLC now owns 1,473 shares of the technology company’s stock valued at $117,000 after purchasing an additional 1,295 shares during the period. Jones Financial Companies Lllp increased its stake in shares of CoStar Group by 860.7% during the first quarter. Jones Financial Companies Lllp now owns 12,691 shares of the technology company’s stock worth $1,006,000 after purchasing an additional 11,370 shares in the last quarter. Empowered Funds LLC raised its position in shares of CoStar Group by 9.2% during the 1st quarter. Empowered Funds LLC now owns 7,941 shares of the technology company’s stock worth $629,000 after purchasing an additional 666 shares during the last quarter. Finally, Woodline Partners LP lifted its stake in CoStar Group by 44.6% in the 1st quarter. Woodline Partners LP now owns 35,604 shares of the technology company’s stock valued at $2,821,000 after buying an additional 10,984 shares in the last quarter. 96.60% of the stock is currently owned by hedge funds and other institutional investors.

Key CoStar Group News

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.

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.