Stock of the Day

February 4, 2020

CoStar Group (CSGP)

$76.79
-$1.54 (-2.0%)
Market Cap: $32.11B

About CoStar Group

CoStar Group, Inc. provides information, analytics, and online marketplace services to the commercial real estate, hospitality, residential, and related professionals industries in the United States, Canada, Europe, the Asia Pacific, and Latin America. The company offers CoStar Property that provides inventory of office, industrial, retail, multifamily, hospitality, and student housing properties and land; CoStar Sales, a robust database of comparable commercial real estate sales transactions; CoStar Market Analytics to view and report on aggregated market and submarket trends; and CoStar Tenant, an online business-to-business prospecting and analytical tool that provides tenant information. It also provides Leasing, a tool to capture, manage, and maintain lease data; CoStar Lease Analysis; Public Record, a searchable database of commercially zoned parcels; CoStar Real Estate Manager, a real estate lease administration, portfolio management, and lease accounting compliance software solution; and CoStar Risk Analytics and CoStar Investment. In addition, it offers apartment marketing sites, such as ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, WestsideRentals.com, AFTER55.com, CorporateHousing.com, ForRentUniversity.com, Apartamentos.com, and Off Campus Partners; LoopNet Premium Lister; LoopNet Diamond, Platinum, and Gold Ads; LandsofAmerica.com, LandAndFarm.com, and LandWatch.com for rural land for-sale; BizBuySell.com, BizQuest.com, and FindaFranchise.com for operating businesses and franchises for-sale; Ten-X, an online auction platform for commercial real estate; and HomeSnap, an online and mobile software platform, as well as Homes.com, a homes for sale listings site. The company was founded in 1987 and is headquartered in Washington, the District of Columbia.

CoStar Group Bull Case

Here are some ways that investors could benefit from investing in CoStar Group, Inc.:

  • Recent institutional interest has surged, with Blue Zone Wealth Advisors LLC increasing its stake by 7.9%, indicating strong confidence in the company's future performance.
  • CoStar Group, Inc. has a solid market capitalization of $32.04 billion, reflecting its significant presence and stability in the technology sector.
  • The stock is currently priced at $78.16, which is below its 52-week high of $100.38, suggesting potential for price appreciation as the market recovers.
  • Analysts have a consensus rating of "Moderate Buy" for CoStar Group, Inc., with several firms setting price targets above the current trading price, indicating expected growth.
  • The company has a high quick ratio of 9.63, suggesting it has sufficient short-term assets to cover its liabilities, which is a positive indicator of financial health.

CoStar Group Bear Case

Investors should be bearish about investing in CoStar Group, Inc. for these reasons:

  • Recent price target reductions by analysts, including Citigroup lowering its target from $88.00 to $86.00, may indicate a lack of confidence in short-term growth prospects.
  • The stock has experienced volatility, with a significant drop from its 52-week high, which could deter risk-averse investors.
  • CoStar Group, Inc. has a high price-to-earnings ratio of 223.08, suggesting that the stock may be overvalued compared to its earnings, which could lead to a price correction.
  • Insider selling activity, such as the sale of 5,500 shares by an insider, may raise concerns about the company's future performance and insider confidence.
  • Despite a strong institutional ownership of 96.60%, the presence of sell ratings from some analysts could indicate potential risks in the stock's performance.

Recent News