CoStar Group, Inc. Monthly Stock Report - October 18, 2025

Company Overview

CoStar Group, Inc. (NASDAQ: CSGP), headquartered in Arlington, Virginia, operates in the Real Estate Services industry within the broader Real Estate sector. Founded in 1987, the company has become a pivotal player in the real estate marketplace, providing a comprehensive range of information, analytics, and online marketplace services globally across the United States, Canada, Europe, the Asia Pacific, and Latin America. CoStar Group's offerings include various platforms such as CoStar Property for property inventory, CoStar Leasing for lease transaction data, and sophisticated market analysis tools, catering to clients including brokers, property owners, and government agencies. With a robust business model rooted in data analytics and research-driven insights, CoStar Group continues to solidify its leadership position in the rapidly evolving property services landscape.

52-Week Price Performance Analysis

52-Week Price Performance Chart

The 52-week price chart of CoStar Group, Inc. illustrates a predominantly sideways trend with intermittent bullish and bearish phases. The stock has fluctuated between a range of $68.26 (the 52-week low) and $97.43 (the 52-week high), with the most recent price standing at $74.965.

Technical Analysis Insights

• Trends: Initially, the stock oscillated between $70 and $85, undergoing a consolidation phase until July, when it experienced a bullish breakout past $90. However, this momentum was not sustainable, and a sharp decline ensued post-September, with the stock falling below $80.
• Support and Resistance Levels: Key support is identified between $70 and $73, which saw recent testing at $73.99. The stock has not managed to sustain resistance levels near $90, indicating bearish market sentiment.
• Momentum and Moving Averages: The current price is approximately 13.1% lower than the 50-day moving average of $86.44, suggesting negative momentum. The recent crossover indicates potential for continued downward pressure unless a reversal occurs.
• Volatility Metrics: The price has moved 4.36% below the recent pivot point, leading investors to watch for stabilization around current support levels. A break below $70 could further amplify concerns regarding the stock's viability in the near term.

Summary of Price Performance

• Current Price: $74.965
• 52-Week High: $97.43
• 52-Week Low: $68.26
• 50-Day Moving Average: $86.4418

Financial Performance and Metrics

CoStar Group, Inc. has shown solid financial performance, which is crucial for potential investors examining its investment viability.

• Total Revenue: Approximately $2.92 billion, with the latest quarterly results revealing a 15.2% year-over-year growth to $781 million in Q2 2025.
• Adjusted EBITDA: The company reported an impressive 107.3% rise in adjusted EBITDA to $85 million, reflecting its operational efficiency and the ability to generate substantial earnings from its core business activities.
• Shares and Equity Structure: The company has 423,650,362 total shares outstanding, with 15,408,940 shares sold short, which constitutes approximately 4.31% of the float. This adds an element of scrutiny regarding investor sentiment, with the short interest indicating potential bearish perceptions.
• Valuation Metrics: The current stock price of $74.965 suggests significant growth potential when juxtaposed with analyst projections of a target high price of $107.00, a target mean price of $96.50, and a moderate buy recommendation.

Key Financial Metrics

• Total Revenue (2025): $2.92 billion
• Q2 Revenue: $781 million
• Q2 Adjusted EBITDA: $85 million
• Current Price: $74.965
• Analyst Target High Price: $107.00
• Analyst Target Mean Price: $96.50

Recent News and Developments

As of October 18, 2025, CoStar Group has been in the headlines for several significant developments:

• Legal Actions: On September 30, 2025, CoStar announced it is pursuing legal action against Zillow for infringing on its intellectual property. The company claims Zillow has displayed thousands of copyrighted CoStar photographs without permission, distributing them to partners like Redfin and Realtor.com. CoStar seeks both permanent injunctive relief and substantial damages.

• Upcoming Earnings Release: The company is scheduled to release its Q3 2025 financial results on October 28, which is highly anticipated given the positive performance shown in the second quarter.

• Workplace Recognition: CoStar Group has been recognized as one of GlobeSt.'s Best Places to Work in Commercial Real Estate for 2025, showcasing strong employee engagement with a notably high retention rate of 98.8% in the first half of 2025.

Market Sentiment and Analyst Recommendations

The analyst consensus surrounding CoStar Group, Inc. suggests a positive outlook despite recent stock price underperformance compared to the Nasdaq Composite.

• Analyst Ratings: The current consensus rating is a "Moderate Buy," with an average recommendation key indicating a strong confidence in the stock's potential. Out of 16 analysts, the recommendation mean stands at 2.06, showing solid backing behind the stock's bullish prospects.
• Price Targets: Analysts project a target high price of $107.00, a target mean price of $96.50, and a target low price of $70.00. This range signifies a significant upside potential, with a suggested price appreciation anticipated if market conditions align favorably.

Market Sentiment Insights

• Analyst Consensus: "Moderate Buy"
• Price Target Range: $70.00 - $107.00
• Current Suggestion: Buy

Conclusion

CoStar Group, Inc. demonstrates a compelling investment opportunity for retail investors looking for growth within the real estate landscape. Despite recent price setbacks and bearish sentiment reflected through short interest, the strong financial metrics, positive analyst ratings, and significant growth potential illustrated by target price analysis suggest a favorable outlook.

Investors should remain vigilant regarding market developments and executive announcements, particularly as the company's third-quarter earnings date approaches. Maintaining a watchful eye on support and resistance levels will be key in navigating buying opportunities in this promising stock. While the path seems challenging in light of short-term volatility, the longer-term view remains optimistic.

For continued insights and market analysis, stay tuned for upcoming reports as CoStar Group and the broader real estate sector continue to evolve.