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

CoStar Group (NASDAQ:CSGP) had its price target reduced by Needham & Company LLC from $80.00 to $60.00 in a research note issued on Wednesday,Benzinga reports. The brokerage presently has a “buy” rating on the technology company’s stock. Needham & Company LLC’s price target would indicate a potential upside of 22.08% from the company’s previous close.

CSGP has been the topic of several other reports. BMO Capital Markets lowered their price objective on CoStar Group from $77.00 to $72.00 and set a “market perform” rating on the stock in a research note on Thursday, January 8th. BTIG Research upgraded CoStar Group from a “neutral” rating to a “buy” rating and set a $80.00 target price on the stock in a report on Tuesday, January 27th. Weiss Ratings reiterated a “sell (d)” rating on shares of CoStar Group in a research report on Monday, December 29th. Bank of America set a $74.00 price objective on shares of CoStar Group in a research report on Wednesday, January 7th. Finally, Zacks Research lowered shares of CoStar Group from a “hold” rating to a “strong sell” rating in a research report on Friday, January 9th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, four have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $80.71.

CoStar Group Stock Performance

NASDAQ:CSGP opened at $49.15 on Wednesday. The firm has a market capitalization of $20.83 billion, a PE ratio of 983.00, a PEG ratio of 1.26 and a beta of 0.84. CoStar Group has a 1 year low of $43.80 and a 1 year high of $97.43. 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 firm’s fifty day simple moving average is $59.63 and its 200 day simple moving average is $71.63.

CoStar Group (NASDAQ:CSGP) last posted its quarterly earnings data on Tuesday, February 24th. The technology company reported $0.31 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.04. CoStar Group had a return on equity of 2.45% and a net margin of 0.66%.The company had revenue of $900.00 million during the quarter, compared to analysts’ expectations of $892.22 million. During the same period in the prior year, the business earned $0.26 earnings per share. CoStar Group’s revenue for the quarter was up 26.9% compared to the same quarter last year. CoStar Group has set its Q1 2026 guidance at 0.160-0.190 EPS. On average, sell-side analysts anticipate that CoStar Group will post 0.94 EPS for the current year.

CoStar Group announced that its Board of Directors has approved a stock repurchase plan on Wednesday, January 7th that allows the company to buyback $1.50 billion in shares. This buyback authorization allows the technology company to reacquire up to 5.3% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On CoStar Group

A number of institutional investors have recently made changes to their positions in the stock. ING Groep NV boosted its holdings in CoStar Group by 1,950.5% during the third quarter. ING Groep NV now owns 128,052 shares of the technology company’s stock worth $10,804,000 after buying an additional 121,807 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. increased its stake in shares of CoStar Group by 14.1% in the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 171,380 shares of the technology company’s stock valued at $14,459,000 after acquiring an additional 21,225 shares during the last quarter. UMB Bank n.a. raised its position in shares of CoStar Group by 51.6% in the 3rd quarter. UMB Bank n.a. now owns 225,305 shares of the technology company’s stock valued at $19,009,000 after acquiring an additional 76,720 shares during the period. Swedbank AB boosted its stake in CoStar Group by 21.0% during the 3rd quarter. Swedbank AB now owns 302,360 shares of the technology company’s stock worth $25,510,000 after acquiring an additional 52,433 shares during the last quarter. Finally, Generali Asset Management SPA SGR increased its stake in CoStar Group by 641.8% in the third quarter. Generali Asset Management SPA SGR now owns 23,880 shares of the technology company’s stock valued at $2,015,000 after purchasing an additional 20,661 shares in the last quarter. 96.60% of the stock is owned by institutional investors and hedge funds.

CoStar Group News Summary

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

• Positive Sentiment: Q4 results beat consensus — CoStar reported $0.31 EPS vs. $0.27 expected and $900M revenue (≈+26.9% YoY), showing strong top-line growth that underpins the upbeat reaction. CoStar Group (CSGP) Surpasses Q4 Estimates
• Positive Sentiment: Analyst support remains — Needham’s Mayank Tandon reiterated a Buy rating on CSGP despite lowering the price target to $60, signaling continued analyst conviction in the company’s multi-year story. Needham Maintains Buy on CoStar
• Neutral Sentiment: Investor communications update — CoStar expanded use of its corporate website for official investor disclosures, a governance/IR change that improves access but is unlikely to move fundamentals. CoStar Expands Investor Disclosures
• Neutral Sentiment: Product/market signal — Homes.com published high-end sale data showing continued activity in luxury markets, which supports CoStar’s residential marketplace relevance but is more PR than a near-term earnings driver. Homes.com Release
• Negative Sentiment: Weaker-than-expected Q1 guidance drove the pullback — management guided Q1 2026 EPS of $0.160–$0.190 (consensus ~ $0.230) and revenue $890–900M (below consensus), which prompted investor concern about near-term margin/booking cadence. CoStar Beats Q4 but Outlook Disappoints
• Negative Sentiment: Market reaction and narrative risk — coverage noted the stock’s valuation and activist/strategic narrative shifts, which can amplify volatility as investors reassess multiples versus growth prospects. Narrative Shifts After Homes.com and Activist Pressure

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.