CoStar Group (NASDAQ:CSGP) Hits New 12-Month Low Following Analyst Downgrade

CoStar Group, Inc. (NASDAQ:CSGP)’s share price hit a new 52-week low on Tuesday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The stock traded as low as $57.01 and last traded at $59.30, with a volume of 8883062 shares changing hands. The stock had previously closed at $58.49.

A number of other brokerages have also recently weighed in on CSGP. Wells Fargo & Company restated an “underweight” rating and set a $55.00 price objective (down from $60.00) on shares of CoStar Group in a research note on Thursday, January 8th. Deutsche Bank Aktiengesellschaft set a $68.00 price target on shares of CoStar Group in a research report on Thursday, January 8th. The Goldman Sachs Group set a $78.00 price objective on shares of CoStar Group in a report on Thursday, January 8th. Royal Bank Of Canada reiterated a “sector perform” rating and set a $91.00 price objective on shares of CoStar Group in a research note on Thursday, October 9th. Finally, BMO Capital Markets dropped their target price on CoStar Group from $77.00 to $72.00 and set a “market perform” rating on the stock in a report on Thursday, January 8th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $84.81.

Institutional Investors Weigh In On CoStar Group

A number of institutional investors have recently bought and sold shares of CSGP. Quent Capital LLC purchased a new stake in shares of CoStar Group in the third quarter worth approximately $26,000. Rossby Financial LCC increased its stake in CoStar Group by 315.9% in the 2nd quarter. Rossby Financial LCC now owns 341 shares of the technology company’s stock valued at $27,000 after buying an additional 259 shares during the period. Manning & Napier Advisors LLC acquired a new position in CoStar Group in the 3rd quarter valued at approximately $28,000. Westside Investment Management Inc. lifted its position in CoStar Group by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 360 shares of the technology company’s stock worth $30,000 after buying an additional 180 shares in the last quarter. Finally, Root Financial Partners LLC acquired a new stake in shares of CoStar Group during the 3rd quarter valued at $31,000. 96.60% of the stock is currently owned by institutional investors and hedge funds.

CoStar Group Stock Performance

The company has a current ratio of 3.12, a quick ratio of 3.12 and a debt-to-equity ratio of 0.12. The firm has a market capitalization of $26.20 billion, a PE ratio of 1,236.40, a PEG ratio of 1.51 and a beta of 0.84. The firm’s fifty day moving average price is $66.56 and its 200 day moving average price is $78.49.

CoStar Group (NASDAQ:CSGP) last announced its quarterly earnings data on Tuesday, October 28th. The technology company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.19 by $0.04. CoStar Group had a return on equity of 2.45% and a net margin of 0.66%.The business had revenue of $833.60 million during the quarter, compared to analyst estimates of $823.62 million. During the same period last year, the company earned $0.22 earnings per share. CoStar Group’s quarterly revenue was up 20.4% compared to the same quarter last year. CoStar Group has set its Q4 2025 guidance at 0.260-0.280 EPS and its FY 2025 guidance at 0.820-0.840 EPS. On average, research analysts anticipate that CoStar Group, Inc. will post 0.94 earnings per share for the current year.

CoStar Group announced that its Board of Directors has initiated a stock buyback plan on Wednesday, January 7th that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the technology company to repurchase up to 5.3% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board of directors believes its shares are undervalued.

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.