CoStar Group (NASDAQ:CSGP) Shares Gap Down After Analyst Downgrade

Shares of CoStar Group, Inc. (NASDAQ:CSGP) gapped down before the market opened on Wednesday after BTIG Research lowered their price target on the stock from $42.00 to $35.00. The stock had previously closed at $32.01, but opened at $30.00. BTIG Research currently has a buy rating on the stock. CoStar Group shares last traded at $29.01, with a volume of 2,152,757 shares trading hands.

A number of other analysts also recently issued reports on CSGP. Citigroup reaffirmed a “market outperform” rating on shares of CoStar Group in a research note on Wednesday. Wall Street Zen cut CoStar Group from a “buy” rating to a “hold” rating in a research note on Sunday, August 2nd. KeyCorp set a $33.00 price objective on shares of CoStar Group in a report on Monday, August 24th. Robert W. Baird set a $34.00 target price on CoStar Group and gave the stock a “neutral” rating in a report on Tuesday, July 14th. Finally, Citizens Jmp dropped their price objective on shares of CoStar Group from $44.00 to $35.00 and set a “market outperform” rating on the stock in a research note on Wednesday, July 29th. Ten equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, CoStar Group currently has a consensus rating of “Hold” and an average price target of $39.53.

Insiders Place Their Bets

In related news, CEO Andrew Florance purchased 83,300 shares of the firm’s stock in a transaction on Tuesday, August 4th. The stock was acquired at an average price of $29.89 per share, with a total value of $2,489,837.00. Following the completion of the acquisition, the chief executive officer owned 1,806,165 shares in the company, valued at approximately $53,986,271.85. This represents a 4.83% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CAO Cynthia Cammett Cann sold 4,788 shares of CoStar Group stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $30.78, for a total value of $147,374.64. Following the sale, the chief accounting officer directly owned 18,822 shares of the company’s stock, valued at approximately $579,341.16. This represents a 20.28% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 1.18% of the company’s stock.

Key Stories Impacting CoStar Group

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

• Positive Sentiment: Strong third-quarter results and higher guidance: CoStar reported record revenue of $952 million, up approximately 14% year over year, while adjusted EBITDA reached a record $229 million—roughly double the prior-year level. Adjusted EPS of $0.38 exceeded the $0.34 consensus estimate, and the company raised its 2026 adjusted EBITDA outlook to $820 million-$840 million while targeting $1.25 billion in 2028. CoStar Group third-quarter results
• Positive Sentiment: Vexcel acquisition expands data capabilities: CoStar agreed to acquire Vexcel for approximately $730 million, adding high-resolution aerial imagery that could improve property search, analytics and digital-twin products. The deal may strengthen CoStar’s competitive position, although investors will assess its integration and return on investment. CoStar to acquire Vexcel
• Positive Sentiment: Some analysts see upside: Needham reaffirmed its “buy” rating with a $40 price target, while BTIG maintained a “buy” rating despite reducing its target from $42 to $35. Those targets imply potential upside from current levels. Analyst ratings

Institutional Trading of CoStar Group

A number of hedge funds have recently added to or reduced their stakes in CSGP. BlackRock Inc. purchased a new stake in CoStar Group during the 2nd quarter valued at about $957,612,000. Bamco Inc. NY purchased a new stake in CoStar Group in the second quarter valued at approximately $612,470,000. Principal Financial Group Inc. lifted its stake in CoStar Group by 0.7% during the 1st quarter. Principal Financial Group Inc. now owns 17,696,192 shares of the technology company’s stock worth $713,866,000 after acquiring an additional 130,118 shares in the last quarter. Jupiter Topco LLC purchased a new position in shares of CoStar Group in the second quarter valued at approximately $221,826,000. Finally, Janus Henderson Group PLC boosted its position in CoStar Group by 3.4% in the 1st quarter. Janus Henderson Group PLC now owns 7,724,152 shares of the technology company’s stock valued at $311,586,000 after buying an additional 250,772 shares during the period. 96.60% of the stock is owned by hedge funds and other institutional investors.

CoStar Group Stock Performance

The company has a 50 day moving average of $30.56 and a 200 day moving average of $37.41. The stock has a market capitalization of $11.49 billion, a price-to-earnings ratio of 150.48 and a beta of 0.80.

CoStar Group (NASDAQ:CSGP) last issued its earnings results on Tuesday, October 27th. The technology company reported $0.38 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.04. The firm had revenue of $952.00 million during the quarter, compared to analyst estimates of $945.82 million. The firm’s revenue was up 14.1% compared to the same quarter last year. During the same period last year, the business earned $0.23 EPS. As a group, research analysts expect that CoStar Group, Inc. will post 1.07 EPS for the current fiscal year.

About CoStar Group

CoStar Group, Inc is a provider of information, analytics, and online marketplaces for the commercial and residential real estate industries. The company collects, analyzes, and distributes property and market data to real estate professionals, investors, lenders, and other businesses.

Its brands and services include CoStar, which offers commercial real estate data and research; LoopNet, a marketplace for commercial property listings; Apartments.com, a rental housing marketplace; and Homes.com, a residential real estate platform.