News and Views

The Official Blog of

CoStar Group, Inc. (CSGP) saw its stock dip amid a volatile market this year. CoStar Group continues to underperform the S&P 500, falling approximately 24% year to date, while the S&P was down about 20% as of July 2022. Amidst stock fluctuations this year, hedge funds were actively buying the stock in the first quarter, and CoStar Group was added to the WhaleWisdom WhaleIndex 100 on May 17, 2022.

CoStar Group provides data, analytics, and marketing services to the commercial and residential real estate industry. The company has an integrated suite of online marketplaces and an online database called CoStar. Some of its more well-known online marketplaces include and BizBuySell. CoStar Group generates revenue from the subscription fees it charges customers to access its research database and marketplace.


Hedge Funds and Institutions Are Buying

CoStar Group has received positive attention from both hedge funds and institutions. Hedge funds increased their aggregate 13F shares to approximately 95.5 million from about 90.6 million, roughly a 5.4% increase during the first quarter. Overall, 26 hedge funds created new positions, 58 added, 37 exited, and 45 reduced their holdings. Institutions increased their aggregate holdings by about 0.1% to approximately 374.1 million from 373.9 million. The 13F metrics across the past twenty years show that share value remains on a gradual upward trend.


Encouraging Multi-year Estimates

Analysts expect to see earnings rise, with increases in growth that could bring earnings to

$1.28 by December 2023, up from an estimated $1.02 for December 2022. Estimates are also optimistic for revenue, with an anticipated rise by the end of 2022 to approximately $2.2 billion. Continued momentum may bring revenue of about $2.5 billion by December 2023.


Analysts Raise Price Targets

Mayank Tandon of Needham & Co. raised the firm’s price target on CoStar Group to $77 from $70 while maintaining a Buy rating. CoStar Group performed better than expected in the first quarter. Tandon noted that strong demand across the company’s business lines impacted the results. Citi analyst Peter Christiansen also kept a Buy rating on shares. Christiansen raised the firm’s price target on CoStar Group to $70 from $65 following solid first-quarter results.

Optimistic Outlook Beyond 2022

While CoStar Group’s growth has slowed, 2023 revenue and earnings estimates are encouraging. Analysts raised their price targets and appeared to view the company as a Buy. With CoStar’s track record of growth and good earnings forecast for 2023, CoStar Group may be a good opportunity for patient investors.

This entry was posted on Monday, July 11th, 2022 at 8:20 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Comments are closed.