CoStar Group (NASDAQ: CSGP) has experienced a reduction in its stock price target from analysts at Needham & Company LLC, who revised their forecast from $105.00 to $80.00. This adjustment was communicated to investors in a note issued on Thursday, October 9, 2023. Despite the lowered target, Needham maintains a “buy” rating on the company’s stock, which indicates a potential upside of approximately 27.78% from its previous closing price.
Other financial institutions have also weighed in on CoStar Group’s performance. Citigroup reaffirmed a “market outperform” rating, while Wells Fargo & Company adjusted its outlook to an “underweight” rating with a target price of $55.00, down from $60.00. Citizens JMP lowered their price target from $100.00 to $78.00 but still assigned a “market outperform” rating. Additionally, Royal Bank of Canada set a price target of $91.00, while Raymond James Financial established a target of $74.00.
Overall, the consensus rating for CoStar Group currently stands at “Moderate Buy,” with a collective average price target of $86.00. Among analysts, one has rated the stock as a Strong Buy, thirteen have issued a Buy rating, five have a Hold rating, and two assigned a Sell rating.
Recent Financial Performance
CoStar Group recently reported its quarterly earnings on October 28, 2023, revealing earnings per share (EPS) of $0.23. This figure surpassed analysts’ expectations of $0.19 by $0.04. The company generated revenues of $833.60 million, exceeding the consensus estimate of $823.62 million. Notably, CoStar Group’s revenue increased by 20.4% year-over-year, reflecting a solid growth trajectory compared to the previous year’s earnings of $0.22 EPS.
Looking ahead, CoStar Group has provided guidance for Q4 2025, anticipating EPS between $0.260 and $0.280. For the full fiscal year of 2025, the company estimates EPS in the range of $0.820 to $0.840. Analysts predict that CoStar Group will post an EPS of $0.94 for the current fiscal year.
On January 7, 2023, CoStar Group’s Board of Directors announced a significant share repurchase program, allowing the company to buy back up to $1.50 billion in shares. This initiative permits the reacquisition of approximately 5.3% of its stock through open market purchases, typically indicating that the company believes its shares are undervalued.
Institutional Investor Activity
Recent changes in holdings by institutional investors further reflect the market’s response to CoStar Group’s stock. Quent Capital LLC acquired a new stake valued at $26,000 during the third quarter. Meanwhile, Rossby Financial LLC increased its stake by 315.9% in the second quarter, now holding 341 shares valued at $27,000 after purchasing an additional 259 shares. Other notable investments include Manning & Napier Advisors LLC, which acquired a new stake worth about $28,000, and Bayforest Capital Ltd, with a new stake valued at approximately $29,000.
As of now, institutional investors and hedge funds own approximately 96.60% of CoStar Group’s stock, demonstrating strong confidence in the company’s market position.
About CoStar Group
CoStar Group, Inc. is a leading provider of information, analytics, and online marketplaces for the commercial real estate sector. The company specializes in gathering property-level data and building market analytics. Its research tools are widely used by brokers, owners, lenders, investors, and other real estate professionals to evaluate markets, track inventory, and manage listings.
CoStar’s services are primarily offered through subscription-based platforms that combine proprietary databases, mapping, and workflow applications, facilitating decision-making throughout the property life cycle. In addition to its core research services, CoStar operates various online listing and marketing platforms, connecting buyers, sellers, tenants, and brokers in the real estate market.
