Needham & Company LLC Reaffirms Buy Rating for CoStar Group (NASDAQ:CSGP)

CoStar Group (NASDAQ:CSGP)‘s stock had its “buy” rating reissued by investment analysts at Needham & Company LLC in a note issued to investors on Wednesday, Benzinga reports. They currently have a $40.00 target price on the technology company’s stock. Needham & Company LLC‘s target price would suggest a potential upside of 44.08% from the company’s current price.

A number of other equities analysts also recently weighed in on the stock. KeyCorp set a $33.00 target price on shares of CoStar Group in a research note on Monday, August 24th. Royal Bank Of Canada set a $34.00 price target on shares of CoStar Group and gave the company a “sector perform” rating in a research note on Monday, July 13th. Robert W. Baird set a $34.00 price target on shares of CoStar Group and gave the company a “neutral” rating in a report on Tuesday, July 14th. The Goldman Sachs Group restated a “buy” rating and issued a $40.00 price objective on shares of CoStar Group in a research report on Wednesday, July 29th. Finally, Citizens Jmp reduced their price objective on CoStar Group from $44.00 to $35.00 and set a “market outperform” rating on the stock in a report on Wednesday, July 29th. Ten research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $39.53.

CoStar Group Price Performance

Shares of CoStar Group stock traded down $4.25 during midday trading on Wednesday, hitting $27.76. 4,811,197 shares of the company were exchanged, compared to its average volume of 6,985,074. The firm has a 50 day simple moving average of $30.56 and a 200-day simple moving average of $37.41. The firm has a market cap of $11.25 billion, a P/E ratio of 147.33 and a beta of 0.80. CoStar Group has a 52 week low of $25.89 and a 52 week high of $72.50.

CoStar Group (NASDAQ:CSGP) last issued its earnings results on Tuesday, October 27th. The technology company reported $0.38 EPS 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 for the quarter was up 14.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.23 EPS. Equities research analysts expect that CoStar Group will post 1.07 earnings per share for the current year.

Insider Buying and Selling

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

Hedge Funds Weigh In On CoStar Group

Hedge funds have recently added to or reduced their stakes in 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 purchasing an additional 2,988 shares during the period. Redmond Asset Management LLC raised its stake in CoStar Group by 134.9% in the third quarter. Redmond Asset Management LLC now owns 37,600 shares of the technology company’s stock valued at $1,030,000 after buying an additional 21,592 shares during the period. Motley Fool Asset Management LLC raised its stake in CoStar Group by 5.7% in the third quarter. Motley Fool Asset Management LLC now owns 11,462 shares of the technology company’s stock valued at $314,000 after buying an additional 615 shares during the period. Pinnacle Wealth Planning Services Inc. lifted its position in shares of CoStar Group by 128.3% in the third quarter. Pinnacle Wealth Planning Services Inc. now owns 2,431 shares of the technology company’s stock valued at $67,000 after buying an additional 1,366 shares during the last quarter. Finally, Park Avenue Securities LLC lifted its position in shares of CoStar Group by 43.6% in the third quarter. Park Avenue Securities LLC now owns 34,698 shares of the technology company’s stock valued at $951,000 after buying an additional 10,537 shares during the last quarter. Institutional investors and hedge funds own 96.60% of the company’s stock.

CoStar Group News Summary

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

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.