CoStar Group (NASDAQ:CSGP) Shares Gap Up – Should You Buy?

Shares of CoStar Group, Inc. (NASDAQ:CSGP) gapped up prior to trading on Thursday. The stock had previously closed at $32.90, but opened at $33.98. CoStar Group shares last traded at $34.6890, with a volume of 705,972 shares trading hands.

Analyst Ratings Changes

A number of brokerages have issued reports on CSGP. Citigroup cut CoStar Group from a “market outperform” rating to a “neutral” rating and cut their price objective for the company from $70.00 to $33.00 in a report on Wednesday, July 29th. Robert W. Baird set a $34.00 target price on shares of CoStar Group and gave the company a “neutral” rating in a research note on Tuesday, July 14th. Wall Street Zen cut CoStar Group from a “buy” rating to a “hold” rating in a report on Sunday, August 2nd. Keefe, Bruyette & Woods cut CoStar Group from an “outperform” rating to a “market perform” rating and cut their price target for the company from $41.00 to $29.00 in a report on Wednesday, July 29th. Finally, BTIG Research reduced their price target on shares of CoStar Group from $55.00 to $42.00 and set a “buy” rating on the stock in a research report on Wednesday, July 29th. Nine research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $40.11.

CoStar Group Price Performance

The company has a market capitalization of $14.36 billion, a price-to-earnings ratio of 186.59, a PEG ratio of 0.84 and a beta of 0.80. The company has a current ratio of 2.21, a quick ratio of 2.21 and a debt-to-equity ratio of 0.13. The company has a 50 day moving average price of $30.41 and a 200 day moving average price of $31.82.

CoStar Group (NASDAQ:CSGP) last issued its quarterly earnings results on Tuesday, July 28th. The technology company reported $0.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.03. The business had revenue of $925.00 million for the quarter, compared to analyst estimates of $928.81 million. CoStar Group had a return on equity of 3.74% and a net margin of 2.08%. The firm’s revenue for the quarter was up 18.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.17 earnings per share. CoStar Group has set its Q3 2026 guidance at 0.310-0.340 EPS and its FY 2026 guidance at 1.320-1.390 EPS. As a group, equities research analysts forecast that CoStar Group, Inc. will post 1.07 earnings per share for the current year.

Insider Activity

In other CoStar Group news, CAO Cynthia Cammett Cann sold 4,788 shares of the company’s 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 transaction, the chief accounting officer directly owned 18,822 shares in the company, valued at approximately $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 accessible through this hyperlink. Also, CEO Andrew Florance bought 83,300 shares of CoStar Group stock in a transaction dated Tuesday, August 4th. The stock was acquired at an average cost of $29.89 per share, for a total transaction of $2,489,837.00. Following the purchase, the chief executive officer directly owned 1,806,165 shares in the company, valued at approximately $53,986,271.85. The trade was a 4.83% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 1.18% of the company’s stock.

Institutional Investors Weigh In On CoStar Group

A number of institutional investors and hedge funds have recently modified their holdings of CSGP. Red Spruce Capital LLC lifted its holdings in shares of CoStar Group by 101.0% during the 2nd quarter. Red Spruce Capital LLC now owns 76,448 shares of the technology company’s stock valued at $2,165,000 after purchasing an additional 38,413 shares in the last quarter. Tidal Investments LLC grew its stake in shares of CoStar Group by 176.9% during the 2nd quarter. Tidal Investments LLC now owns 68,552 shares of the technology company’s stock worth $1,941,000 after acquiring an additional 43,798 shares in the last quarter. Oppenheimer Asset Management Inc. acquired a new stake in shares of CoStar Group in the second quarter valued at approximately $7,516,000. Odyssean LLC acquired a new stake in shares of CoStar Group in the second quarter valued at approximately $2,564,000. Finally, Nykredit A S bought a new stake in shares of CoStar Group in the second quarter worth $11,370,000. 96.60% of the stock is owned by institutional investors.

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.