Needham & Company LLC Cuts CoStar Group (NASDAQ:CSGP) Price Target to $40.00

CoStar Group (NASDAQ:CSGP) had its price objective reduced by Needham & Company LLC from $50.00 to $40.00 in a research note issued to investors on Wednesday, MarketBeat reports. Needham & Company LLC currently has a buy rating on the technology company’s stock.

Several other research analysts have also issued reports on the company. Weiss Ratings reaffirmed a “sell (d)” rating on shares of CoStar Group in a research report on Wednesday, June 24th. Benchmark initiated coverage on CoStar Group in a research note on Thursday, June 4th. They issued a “buy” rating and a $45.00 price target for the company. William Blair downgraded CoStar Group from an “outperform” rating to a “market perform” rating in a research report on Wednesday. Wall Street Zen raised CoStar Group from a “hold” rating to a “buy” rating in a research note on Saturday, July 25th. Finally, Stephens reduced their target price on CoStar Group from $50.00 to $42.00 and set an “overweight” rating on the stock in a report on Monday, May 4th. Nine analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, CoStar Group has a consensus rating of “Hold” and an average price target of $41.61.

CoStar Group Trading Down 2.4%

CSGP opened at $28.76 on Wednesday. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.21 and a quick ratio of 2.20. CoStar Group has a fifty-two week low of $25.89 and a fifty-two week high of $97.43. The company’s 50 day moving average price is $30.55 and its two-hundred day moving average price is $40.14. The firm has a market capitalization of $11.65 billion, a price-to-earnings ratio of 151.38, a PEG ratio of 0.77 and a beta of 0.74.

CoStar Group (NASDAQ:CSGP) last released 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 firm had revenue of $925.00 million during the quarter, compared to the consensus estimate of $928.81 million. CoStar Group had a net margin of 2.08% and a return on equity of 3.74%. The company’s revenue for the quarter was up 18.4% on a year-over-year basis. During the same quarter last year, the firm earned $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, research analysts predict that CoStar Group will post 1.06 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Bamco Inc. NY lifted its stake in shares of CoStar Group by 1.3% in the 4th quarter. Bamco Inc. NY now owns 19,498,099 shares of the technology company’s stock valued at $1,311,052,000 after purchasing an additional 242,533 shares during the period. State Street Corp grew its stake in CoStar Group by 1.9% during the fourth quarter. State Street Corp now owns 18,632,352 shares of the technology company’s stock worth $1,252,839,000 after purchasing an additional 348,224 shares during the period. Principal Financial Group Inc. grew its stake in CoStar Group by 0.7% during the first quarter. Principal Financial Group Inc. now owns 17,696,192 shares of the technology company’s stock worth $713,866,000 after purchasing an additional 130,118 shares during the period. Baillie Gifford & Co. increased its holdings in CoStar Group by 56.9% in the fourth quarter. Baillie Gifford & Co. now owns 12,933,185 shares of the technology company’s stock worth $869,627,000 after purchasing an additional 4,691,543 shares in the last quarter. Finally, Capital International Investors increased its holdings in CoStar Group by 59.7% in the fourth quarter. Capital International Investors now owns 10,842,010 shares of the technology company’s stock worth $729,020,000 after purchasing an additional 4,053,456 shares in the last quarter. 96.60% of the stock is owned by institutional investors.

CoStar Group News Summary

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

• Positive Sentiment: CoStar’s second-quarter revenue increased 18.4% year over year, while adjusted earnings of $0.32 per share exceeded the $0.29 consensus estimate. The company also highlighted record revenue growth and maintained third-quarter and full-year 2026 earnings guidance. CoStar Group Q2 2026 Earnings Call Highlights
• Positive Sentiment: Zacks identified CoStar as a potentially attractive long-term growth stock, suggesting its growth profile and Style Scores remain supportive despite recent momentum concerns. Why CoStar Group Is a Top Growth Stock for the Long-Term
• Neutral Sentiment: CoStar data showed UK regional office construction starts fell below 5 million square feet in the second quarter, a 20-year low, while London dominated development. The report reinforces CoStar’s value as a real estate data provider, but weak office construction reflects challenging conditions for parts of the property market. CoStar Data Shows London Dominates UK Office Development
• Negative Sentiment: William Blair, Keefe, Bruyette & Woods and other analysts lowered their ratings, while JPMorgan cut its price target to $52, Citizens JMP reduced its target to $35, and BTIG issued a pessimistic forecast. The changes signal diminishing confidence in the near-term upside. Analyst Rating and Price Target Updates
• Negative Sentiment: Investor concerns include slower momentum, uncertainty around future earnings growth, soft guidance and the departure of Chief Financial Officer Scott Wheeler. CoStar’s quarterly revenue also came in slightly below consensus, and its high price-to-earnings ratio leaves the stock sensitive to any further slowdown. CoStar Group Near-Term Earnings Growth Uncertainty

CoStar Group Company Profile

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.