CoStar Group (NASDAQ:CSGP) Stock Price Breaks Below Fifty Day Moving Average on Analyst Downgrade

CoStar Group, Inc. (NASDAQ:CSGP)’s stock price passed below its 50-day moving average during trading on Wednesday after JPMorgan Chase & Co. lowered their price target on the stock from $52.00 to $44.00. The stock has a 50-day moving average of $30.48 and traded as low as $26.86. JPMorgan Chase & Co. currently has an overweight rating on the stock. CoStar Group shares last traded at $27.54, with a volume of 18,318,858 shares.

A number of other analysts also recently issued reports on CSGP. Citigroup reaffirmed a “market outperform” rating on shares of CoStar Group in a research report on Wednesday. Needham & Company LLC reissued a “buy” rating and set a $40.00 price target on shares of CoStar Group in a research report on Wednesday. Wall Street Zen downgraded CoStar Group from a “buy” rating to a “hold” rating in a research note on Sunday, August 2nd. KeyCorp set a $33.00 price target on CoStar Group in a research note on Monday, August 24th. Finally, Citizens Jmp lowered their price target on CoStar Group from $44.00 to $35.00 and set a “market outperform” rating on the stock in a research report on Wednesday, July 29th. Ten equities 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 stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $39.11.

Insiders Place Their Bets

In other 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 value of $147,374.64. Following the sale, the chief accounting officer directly owned 18,822 shares of the company’s stock, valued at approximately $579,341.16. This represents a 20.28% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Andrew C. Florance bought 83,300 shares of the company’s stock in a transaction dated Tuesday, August 4th. The stock was purchased at an average cost of $29.89 per share, for a total transaction of $2,489,837.00. Following the completion of the acquisition, the chief executive officer owned 1,806,165 shares in the company, valued at $53,986,271.85. This trade represents a 4.83% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 1.18% of the company’s stock.

Trending Headlines about CoStar Group

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

• Positive Sentiment: Q3 results exceeded expectations. CoStar reported record revenue of approximately $952 million, up 14% year over year, while adjusted EPS of $0.38 surpassed the $0.34 consensus estimate. Adjusted EBITDA reached a record $229 million, roughly doubling from a year earlier, and operating cash flow improved substantially. CoStar Group Q3 Earnings Beat Estimates
• Positive Sentiment: Management raised its outlook. CoStar increased full-year 2026 adjusted EBITDA guidance to $820 million-$840 million and outlined a longer-term target of $1.25 billion in adjusted EBITDA for 2028, supporting the company’s margin-expansion story. CoStar Raises EBITDA Outlook
• Neutral Sentiment: Analyst views remain divided. JPMorgan maintained an overweight rating with a $44 target, while Needham maintained a buy rating with a $40 target. However, Goldman Sachs, BTIG, Baird and Keefe, Bruyette & Woods reduced their price targets; Wells Fargo kept an underweight rating despite raising its target to $26.
• Negative Sentiment: Investors reacted to weaker forward signals. Coverage highlighted concerns about guidance, residential-market profitability and high interest rates. Although revenue and adjusted earnings beat estimates, reported net income and diluted EPS were pressured by comparison with the prior year, increasing doubts about the pace and quality of earnings growth. CoStar Q3 Beats Revenue but Stock Drops on Weak Guidance
• Negative Sentiment: The Vexcel acquisition adds execution and capital-allocation risk. CoStar plans to purchase Vexcel for $730 million in cash to add high-resolution aerial imagery, a potentially valuable enhancement to its property-data platform but a sizable cash commitment that may raise near-term integration concerns. CoStar to Acquire Vexcel

Hedge Funds Weigh In On CoStar Group

A number of institutional investors have recently bought and sold shares of the business. Transamerica Financial Advisors LLC bought a new stake in CoStar Group in the second quarter valued at approximately $33,000. Pin Oak Investment Advisors Inc. bought a new position in shares of CoStar Group during the 2nd quarter worth approximately $47,000. CYBER HORNET ETFs LLC increased its holdings in shares of CoStar Group by 50.8% during the 2nd quarter. CYBER HORNET ETFs LLC now owns 1,757 shares of the technology company’s stock worth $50,000 after acquiring an additional 592 shares during the last quarter. Root Financial Partners LLC acquired a new position in shares of CoStar Group during the 3rd quarter worth approximately $48,000. Finally, Livforsakringsbolaget Skandia Omsesidigt acquired a new position in shares of CoStar Group during the 2nd quarter worth approximately $59,000. Institutional investors and hedge funds own 96.60% of the company’s stock.

CoStar Group Trading Down 14.0%

The business has a 50 day moving average of $30.48 and a two-hundred day moving average of $37.25. 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 firm has a market cap of $11.16 billion, a P/E ratio of 144.95, a PEG ratio of 0.86 and a beta of 0.80.

CoStar Group (NASDAQ:CSGP) last issued its quarterly earnings data on Tuesday, October 27th. The technology company reported $0.38 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.04. The company had revenue of $952.00 million for the quarter, compared to analyst estimates of $945.82 million. CoStar Group had a net margin of 2.08% and a return on equity of 3.74%. The company’s revenue was up 14.1% on a year-over-year basis. During the same period in the prior year, the firm earned $0.23 earnings per share. Analysts predict that CoStar Group, Inc. will post 1.07 earnings per share for the current year.

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.