Needham & Company LLC Has Lowered Expectations for CoStar Group (NASDAQ:CSGP) Stock Price

CoStar Group (NASDAQ:CSGP) had its price objective cut by equities research analysts at Needham & Company LLC from $105.00 to $80.00 in a note issued to investors on Thursday,Benzinga reports. The firm currently has a “buy” rating on the technology company’s stock. Needham & Company LLC’s price target indicates a potential upside of 27.78% from the company’s previous close.

Other research analysts have also issued reports about the company. Citigroup restated a “market outperform” rating on shares of CoStar Group in a research report on Thursday. Wells Fargo & Company reissued an “underweight” rating and set a $55.00 target price (down previously from $60.00) on shares of CoStar Group in a research note on Thursday. Citizens Jmp dropped their target price on CoStar Group from $100.00 to $78.00 and set a “market outperform” rating for the company in a research report on Thursday. Royal Bank Of Canada reiterated a “sector perform” rating and set a $91.00 price target on shares of CoStar Group in a research note on Thursday, October 9th. Finally, Raymond James Financial set a $74.00 price target on shares of CoStar Group in a research report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $86.00.

CoStar Group Trading Up 1.5%

CSGP stock traded up $0.95 during mid-day trading on Thursday, hitting $62.61. 2,370,093 shares of the company were exchanged, compared to its average volume of 5,561,544. The company has a quick ratio of 3.12, a current ratio of 3.12 and a debt-to-equity ratio of 0.12. The firm has a market capitalization of $26.54 billion, a P/E ratio of 1,249.00, a PEG ratio of 1.45 and a beta of 0.84. The business has a fifty day simple moving average of $67.29 and a 200-day simple moving average of $79.08. CoStar Group has a 12-month low of $60.19 and a 12-month high of $97.43.

CoStar Group (NASDAQ:CSGP) last released its quarterly earnings results on Tuesday, October 28th. The technology company reported $0.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.19 by $0.04. The business had revenue of $833.60 million for the quarter, compared to the consensus estimate of $823.62 million. CoStar Group had a net margin of 0.66% and a return on equity of 2.45%. The business’s revenue was up 20.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.22 EPS. 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, equities research analysts predict that CoStar Group will post 0.94 earnings per share for the current fiscal year.

CoStar Group declared that its Board of Directors has initiated a share repurchase program on Wednesday, January 7th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the technology company to reacquire up to 5.3% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s leadership believes its shares are undervalued.

Institutional Investors Weigh In On CoStar Group

A number of hedge funds and other institutional investors have recently modified their holdings of CSGP. Quent Capital LLC acquired a new position in shares of CoStar Group during the third quarter worth $26,000. Rossby Financial LCC raised its stake in CoStar Group by 315.9% in the second quarter. Rossby Financial LCC now owns 341 shares of the technology company’s stock valued at $27,000 after buying an additional 259 shares in the last quarter. Manning & Napier Advisors LLC purchased a new stake in CoStar Group during the 3rd quarter worth about $28,000. Bayforest Capital Ltd purchased a new stake in CoStar Group during the 1st quarter worth about $29,000. Finally, Westside Investment Management Inc. boosted its position in shares of CoStar Group by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 360 shares of the technology company’s stock worth $30,000 after acquiring an additional 180 shares in the last quarter. 96.60% of the stock is currently owned by institutional investors and hedge funds.

Key CoStar Group News

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

• Positive Sentiment: Board authorizes $1.5 billion buyback (up to ~5.3% of shares) — a direct capital-return action that can boost EPS and signals management thinks the stock is undervalued. Read More.
• Positive Sentiment: Company issued a medium-term plan focused on adjusted-EBITDA expansion and shareholder-aligned governance changes after a capital-allocation review, which supports long-term margin improvement. Read More.
• Positive Sentiment: Some analysts remain constructive — William Blair reiterated a Buy rating, highlighting the view that conservative guidance plus better capital allocation creates a buying opportunity. Read More.
• Positive Sentiment: Management is still guiding for roughly ~18% year-over-year revenue growth in FY26, signaling solid top-line momentum even as they tighten spending and capital deployment. Read More.
• Neutral Sentiment: FY26 EPS guidance of $1.220–1.330 is roughly in line with consensus but is somewhat conservative (slightly below some estimates), which tempers upside expectations. Read More.
• Neutral Sentiment: Citizens Jmp lowered its price target to $78 but kept a Market Outperform rating — a tempered bullish view that still implies upside but recognizes higher near-term uncertainty. Read More.
• Negative Sentiment: BMO cut its price target to $72 and moved to Market Perform, a clear downgrade in analyst sentiment that can pressure the stock if other firms follow. Read More.
• Negative Sentiment: Investors reacted poorly to the Homes.com plan — management says Homes.com will be profitable by 2030 and will cut net investment by at least $100M per year until then, which some view as a long payback and a drag on near-term growth. Read More.

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.