CSGP – CoStar Group, Inc.

CoStar Group, Inc. (CSGP) Monthly Stock Report – December 02, 2025

Company Overview

CoStar Group, Inc., headquartered in Arlington, Virginia, is a prominent player in the Real Estate Services industry, which is a vital segment of the broader Real Estate sector. Founded in 1987, the company has established itself as a leading provider of comprehensive information, analytics, and online marketplace services across diverse regions including the United States, Canada, Europe, the Asia Pacific, and Latin America. CoStar’s business model focuses on delivering platforms for commercial real estate transactions, portfolio management, market analysis, and various tools for property leasing and sales.

The company also operates notable marketing websites such as Apartamentos.com and LoopNet.com. These platforms cater to a wide range of clients, including brokers, property owners, investors, and government entities. With total revenue reported at approximately $3.06 billion, CoStar Group demonstrates a solid market position and operational effectiveness. The strong recommendation for investors is a “buy,” with a target high price set at $105.00, reflecting the anticipated growth and positive trajectory in the company’s valuation.

52-Week Price Performance Analysis

The 52-week price chart for CoStar Group, Inc. (CSGP) outlines a predominantly bearish trend, particularly in the latter half of the year. Initially, the stock hovered within the $75-$80 range, but it struggled to break through the significant resistance level around $80, which was marked by a red dashed line on the chart. The inability to maintain upward momentum led to a downturn, reinforcing bearish sentiment as indicated by a downward trend line.

Key technical analysis shows that the stock currently sits at $67.77, significantly below both its 50-day moving average of $74.43 and its recent 52-week high of $97.43. The ongoing bearish trend is illustrated by a decline of roughly 15.13% from a peak reached in September. Support and resistance levels are crucial for strategic trading decisions; with $68 acting as potential support and $80 as strong resistance, investors should monitor these levels closely.

The hourly chart indicates that the current price is testing the support level. A break below $68 could further indicate downward movement, while a sustained move above the 50-day moving average may signal the potential for a rebound. Momentum indicators suggest bearish pressure, as evidenced by the 50-day moving average crossing below the price line in October, highlighting a concerning downward trend after failing to establish higher highs following an August peak.

Financial Performance and Metrics

CoStar Group, Inc. recently reported its third-quarter 2025 financial results, showcasing a year-over-year revenue increase of 20%, resulting in total revenue of $833.6 million–surpassing analyst expectations of $812.12 million. However, the adjusted earnings per share (EPS) of $0.23 fell short of the consensus estimate of $0.30, reflecting mixed results despite raising its full-year guidance to between $3.23 billion and $3.24 billion, indicating an expected growth rate of 18% at the midpoint.

The company has consistently shown robust operational efficiency with an EBITDA reported at $157.8 million, supporting strong profitability potential. Additionally, CoStar has 423,822,791 shares outstanding, with only 18,092,722 shares shorted, representing approximately 0.0506% of its float. This relatively low short interest suggests positive sentiment among investors.

However, the stock is facing scrutiny due to its high valuation metrics, as shown by a P/E ratio of 283 and an EV to EBITDA ratio of 202.31, which some analysts interpret as potential overvaluation risks. The financial health indicators paint a complex picture; while revenue growth is a positive sign, concerns about profitability relative to market expectations remain paramount.

Recent News and Developments

CoStar has been active in strategic initiatives to enhance its market position. Notably, the company completed the acquisition of Domain Holdings Australia Limited on August 27, 2025, by acquiring the remaining 83% of its shares. This strategic move aims to bolster CoStar’s competitive edge and add value to Australia’s property market by combining its global technology with local expertise.

Additionally, CoStar is focused on capital management, exemplified by its issuance of $1.0 billion in senior notes and a new $1.1 billion revolving credit facility acquired in May 2024. These actions are geared towards supporting future strategic acquisitions and business growth.

In the realm of market analysis, recent reports suggest a cautious yet optimistic outlook from analysts. While there’s a moderate buy consensus, some have raised concerns about the high valuation metrics, calling for a prudent approach to investment.

Market Sentiment and Analyst Recommendations

Currently, CoStar Group, Inc. (NASDAQ: CSGP) enjoys a consensus rating of “Moderate Buy” from analysts, reflecting confidence primarily driven by its growth potential. The average price target stands at $93.38, with a target high of $105.00 and a target low of $60.00. The significant variation in target prices indicates the market’s divided sentiment on its future trajectory.

The recommendation mean of 2.0 confirms a broadly favorable view among analysts, signaling the stock could be a worthwhile investment, particularly for those looking at long-term growth. However, it’s essential for investors to weigh the substantial risks tied to high valuation metrics against potential rewards. Institutional activity shows some caution, such as Korea Investment CORP reducing its stake by 28.3% during the second quarter, indicating evolving market perceptions.

Conclusion: Opportunities and Risks

CoStar Group, Inc. presents an intriguing opportunity for retail investors, highlighted by its robust revenue growth and positive analyst sentiment, alongside a significant potential upside. However, the inherent volatility and challenges associated with high valuation metrics should encourage caution. As investors consider entering this position, monitoring key price levels, maintaining awareness of ongoing strategic developments, and evaluating broad market conditions will be essential to capitalizing on potential gains while mitigating risk.

In conclusion, the upcoming months will be critical for making informed investment decisions regarding CoStar Group, as the market continues to assess its performance against macroeconomic trends and evolving competitive landscapes.

Metric	Value
Market Cap	$28.7b
Total Debt	$1.1b
Total Cash	$1.9b
Shares Outstanding	423.8m
Float Shares	418.2m