CoStar Group’s (CSGP) “Buy” Rating Reaffirmed at Needham & Company LLC

CoStar Group (NASDAQ:CSGP)‘s stock had its “buy” rating restated by analysts at Needham & Company LLC in a research note issued on Wednesday, Benzinga reports. They presently have a $40.00 price objective on the technology company’s stock. Needham & Company LLC‘s price target points to a potential upside of 24.96% from the company’s current price.

A number of other equities research analysts have also recently issued reports on CSGP. Wolfe Research reiterated an “outperform” rating and issued a $32.00 target price (down from $35.00) on shares of CoStar Group in a research note on Wednesday, July 29th. Citigroup reiterated a “market outperform” rating on shares of CoStar Group in a research note on Wednesday. Robert W. Baird set a $34.00 target price on CoStar Group and gave the company a “neutral” rating in a research note on Tuesday, July 14th. BTIG Research cut their target price on CoStar Group from $55.00 to $42.00 and set a “buy” rating on the stock in a research note on Wednesday, July 29th. Finally, Citizens Jmp cut their target price on 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 research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $40.21.

CoStar Group Stock Performance

CSGP stock opened at $32.01 on Wednesday. The stock has a market capitalization of $12.97 billion, a price-to-earnings ratio of 168.48 and a beta of 0.80. CoStar Group has a 1 year low of $25.89 and a 1 year high of $78.95. The stock’s fifty day moving average is $30.56 and its two-hundred day moving average is $37.41.

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

Insider Transactions at CoStar Group

In related news, CAO Cynthia Cammett Cann sold 4,788 shares of CoStar Group stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $30.78, for a total transaction of $147,374.64. Following the sale, the chief accounting officer directly owned 18,822 shares in the company, valued at $579,341.16. The trade was a 20.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Andrew Florance acquired 83,300 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The shares were bought at an average price of $29.89 per share, for a total transaction of $2,489,837.00. Following the completion of the purchase, the chief executive officer owned 1,806,165 shares of the company’s stock, valued at approximately $53,986,271.85. This represents a 4.83% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 1.18% of the stock is owned by insiders.

Institutional Investors Weigh In On CoStar Group

Hedge funds and other institutional investors have recently modified their holdings of the stock. D.A. Davidson & CO. grew its holdings in CoStar Group by 10.3% during the third quarter. D.A. Davidson & CO. now owns 31,879 shares of the technology company’s stock worth $873,000 after acquiring an additional 2,988 shares during the period. Redmond Asset Management LLC grew its holdings in CoStar Group by 134.9% during the third quarter. Redmond Asset Management LLC now owns 37,600 shares of the technology company’s stock worth $1,030,000 after acquiring an additional 21,592 shares during the period. Motley Fool Asset Management LLC grew its holdings in CoStar Group by 5.7% during the third quarter. Motley Fool Asset Management LLC now owns 11,462 shares of the technology company’s stock worth $314,000 after acquiring an additional 615 shares during the period. Pinnacle Wealth Planning Services Inc. grew its holdings in CoStar Group by 128.3% during the third quarter. Pinnacle Wealth Planning Services Inc. now owns 2,431 shares of the technology company’s stock worth $67,000 after acquiring an additional 1,366 shares during the period. Finally, Park Avenue Securities LLC grew its holdings in CoStar Group by 43.6% during the third quarter. Park Avenue Securities LLC now owns 34,698 shares of the technology company’s stock worth $951,000 after acquiring an additional 10,537 shares during the period. 96.60% of the stock is currently owned by institutional investors.

Trending Headlines about CoStar Group

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

• Positive Sentiment: CoStar reported record third-quarter revenue of $952 million, up 14% year over year, while adjusted EBITDA reached a record $229 million, roughly doubling from the prior year. Adjusted earnings of $0.38 per share exceeded the $0.34 consensus estimate, and operating cash flow increased substantially. CoStar Group third-quarter results
• Positive Sentiment: Management raised its 2026 adjusted EBITDA outlook to $820 million-$840 million and set a longer-term target of approximately $1.25 billion in adjusted EBITDA by 2028, reinforcing the potential for margin expansion and stronger cash generation. CoStar raises EBITDA outlook
• Positive Sentiment: CoStar agreed to acquire Vexcel Group for approximately $730 million. Vexcel’s survey-grade aerial imagery and geospatial data could enhance search, discovery, analytics, and digital-twin products across CoStar’s platforms. CoStar to acquire Vexcel
• Neutral Sentiment: The quarter’s GAAP net income was $74 million, or $0.18 per diluted share, while revenue was slightly below at least one Wall Street estimate of $965.1 million. The differing adjusted and GAAP figures may be contributing to investor caution.
• Negative Sentiment: Investors appeared to view the outlook and acquisition spending cautiously. The stock’s decline reflects concern that near-term growth may not justify its elevated valuation, with shares trading well below their 200-day moving average and at a high earnings multiple. CoStar third-quarter stock reaction

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.