CoStar Group (NASDAQ:CSGP) Shares Gap Up – Still a Buy?

CoStar Group, Inc. (NASDAQ:CSGP)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $65.81, but opened at $69.28. CoStar Group shares last traded at $68.6450, with a volume of 2,074,733 shares trading hands.

Wall Street Analyst Weigh In

Several research firms recently weighed in on CSGP. The Goldman Sachs Group restated a “buy” rating and set a $84.00 price target on shares of CoStar Group in a research report on Wednesday, January 14th. Citizens Jmp dropped their target price on shares of CoStar Group from $100.00 to $78.00 and set a “market outperform” rating on the stock in a research note on Thursday, January 8th. Weiss Ratings reissued a “sell (d)” rating on shares of CoStar Group in a research report on Monday, December 29th. BMO Capital Markets lowered their price target on shares of CoStar Group from $77.00 to $72.00 and set a “market perform” rating on the stock in a report on Thursday, January 8th. Finally, Deutsche Bank Aktiengesellschaft set a $68.00 price objective on CoStar Group in a research note on Thursday, January 8th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $83.39.

CoStar Group Stock Performance

The company has a market capitalization of $28.68 billion, a P/E ratio of 1,355.48, a P/E/G ratio of 1.72 and a beta of 0.84. 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 company’s fifty day moving average is $65.97 and its 200 day moving average is $77.37.

CoStar Group (NASDAQ:CSGP) last issued its 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. CoStar Group had a net margin of 0.66% and a return on equity of 2.45%. The business had revenue of $833.60 million for the quarter, compared to analysts’ expectations of $823.62 million. During the same quarter in the previous year, the firm posted $0.22 EPS. The business’s revenue for the quarter was up 20.4% compared to the same quarter last year. As a group, equities analysts anticipate that CoStar Group, Inc. will post 0.94 earnings per share for the current year.

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

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Swedbank AB grew its holdings in shares of CoStar Group by 21.0% during the third quarter. Swedbank AB now owns 302,360 shares of the technology company’s stock valued at $25,510,000 after buying an additional 52,433 shares during the last quarter. Generali Asset Management SPA SGR raised its holdings in CoStar Group by 641.8% in the 3rd quarter. Generali Asset Management SPA SGR now owns 23,880 shares of the technology company’s stock worth $2,015,000 after acquiring an additional 20,661 shares during the last quarter. Third Point LLC lifted its position in CoStar Group by 56.2% in the 2nd quarter. Third Point LLC now owns 3,085,000 shares of the technology company’s stock valued at $248,034,000 after acquiring an additional 1,110,000 shares in the last quarter. Shaker Investments LLC OH purchased a new stake in CoStar Group during the 3rd quarter valued at $1,821,000. Finally, Voya Investment Management LLC boosted its stake in CoStar Group by 49.9% during the 3rd quarter. Voya Investment Management LLC now owns 1,846,286 shares of the technology company’s stock valued at $155,771,000 after purchasing an additional 614,515 shares during the last quarter. Hedge funds and other institutional investors own 96.60% of the company’s stock.

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.