CoStar Group Inc. ($CSGP) Stock Forecast: Down 6.2% Today

What is CoStar Group Inc.?

A real estate data provider, CoStar Group (CSGP), is known for its Homes.com platform. The company has been under pressure from activist investor Third Point regarding its Homes.com strategy and overall market performance.

Why is CoStar Group Inc. going down?

CSGP stock is down 6.2% on Jan 29, 2026 18:37

• CoStar Group saw a decline in the market today, potentially influenced by the pressure from activist investor Third Point concerning its Homes.com strategy and capital allocation decisions.
• Third Point's critique of CoStar's Homes.com investments and management choices may have unsettled investors, leading to a sell-off of CoStar's shares.
• Third Point's announcement of plans to nominate directors to CoStar's board likely created uncertainty about the company's future leadership and strategic path, contributing to negative market sentiment.
• Despite CoStar's defense of its Homes.com strategy and initiation of a $1.5 billion share repurchase program, investors may be observing the proxy battle with Third Point before re-establishing confidence in CoStar's stock.

CSGP Price Chart

CSGP Technical Analysis

CSGP News

CoStar pushes back on ‘short-sighted’ call to ditch Homes.com

CoStar Group has forcefully rejected activist investor Third Point's criticism of its Homes.com investment and overall strategy. The company defended Homes.com as core to its long-term vision, citing its expanding market reach and improved financials, while also pointing to board changes, buybacks, and a planned reduction in spending. CoStar questioned Third Point's track record and reaffirmed its commitment to its disciplined growth strategy.

https://www.realestatenews.com/2026/01/28/costar-pushes-back-on-short-sighted-call-to-ditch-homes-com

Third Point confirms plans to nomiate directors to board of CoStar Group

Third Point has announced its intention to nominate directors to CoStar Group's board, citing concerns over weak board oversight, misaligned management incentives, and "disastrous capital allocation policies." The activist investor criticized CEO Andy Florance's strategy with Homes.com, which it believes has led to significant underperformance of CoStar's stock. Third Point expressed confidence in CoStar's core commercial real estate business but highlighted the urgent need for new leadership to reverse value destruction and rebuild investor confidence.

https://www.tipranks.com/news/the-fly/third-point-confirms-plans-to-nomiate-directors-to-board-of-costar-group-thefly

CoStar Group responds to Third Point with $1.5 billion buyback, Homes.com strategy

CoStar Group announced a new $1.5 billion share repurchase program and defended its Homes.com strategy against activist investor Third Point LLC. The real estate data provider plans to reduce Homes.com investment, expecting the platform to break even by 2029, and projects significant revenue and EBITDA growth by 2026 and 2030. The company also added new independent directors to its board and redesigned its executive compensation program.

https://www.investing.com/news/company-news/costar-group-responds-to-third-point-with-15-billion-buyback-homescom-strategy-93CH-4470468

CoStar stands firm on Homes.com amid investor pressure

CoStar Group has rejected activist investor Third Point's call to divest or shut down Homes.com, stating that abandoning the platform would destroy long-term value. CoStar defended its strategy, citing 337% subscriber growth for Homes.com since Q1 2024, and outlined plans to reduce investment in the platform while accelerating share repurchases. The company also announced new profitability targets and enhancements to its commercial product offerings.

https://www.housingwire.com/articles/costar-rejects-investor-demands/

Why CoStar Group Stock Topped the Market Today

CoStar Group (NASDAQ: CSGP) saw a slight stock increase today after activist investor Third Point sent a blistering letter to its board of directors. Third Point, led by Daniel Loeb, is pushing for significant changes, including new board members and a re-evaluation of its Homes.com strategy, criticizing the company's "disastrous capital allocation policies" and poor stock performance. Investors are cautiously optimistic that this proxy battle could lead to positive changes for CoStar.

https://www.theglobeandmail.com/investing/markets/stocks/CSGP-Q/pressreleases/37262141/why-costar-group-stock-topped-the-market-today/

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CoStar Group Inc. Price History

05.00.2026 - CSGP Stock was up 2.0%

• A new investment in Check Point Software Technologies Ltd. and a positive earnings report exceeding expectations may have contributed to a bullish sentiment in the tech sector, potentially boosting investor confidence in related companies like CoStar Group.
• Despite a sell-off by a major investor, other institutional investors increasing their positions and the overall positivity towards the company's Q3 earnings performance could have driven the stock price higher.
• The rebound in the office sector may have positively impacted CoStar Group's outlook, especially with increased leasing activity and demand for office spaces.
• CoStar's identification of key trends shaping Canada's real estate market in 2026 could have provided insights into the broader real estate industry, potentially influencing investor sentiment towards real estate-related stocks like CoStar Group.

14.00.2026 - CSGP Stock was up 5.1%

• CSGP witnessed a notable uptrend today, possibly fueled by favorable affirmations from Goldman Sachs supporting its Buy recommendation and $84 target price.
• Goldman Sachs' positive outlook is anchored in the distinctive features of CoStar's Homes.com platform, anticipated outperformance of medium-range EBITDA goals, and projections of substantial EBITDA margin enlargement and EPS growth.
• While the mean one-year target price for CSGP has slightly decreased lately, the overall sentiment remains upbeat, underpinned by robust revenue expansion and a solid financial position.
• The market's reaction underscores investor trust in CoStar Group's strategic trajectory and growth prospects, culminating in the stock's upward momentum.

14.00.2026 - CSGP Stock was up 6.2%

• CoStar Group (CSGP) showcased notable upward momentum, potentially fueled by favorable analyst evaluations and ongoing Buy recommendations projecting optimistic price objectives.
• Despite facing financial pressures from substantial investments, CoStar's initiatives in the residential real estate domain, including its Homes.com project, are instilling confidence among investors.
• Analysts are positive about CoStar's technological advancements, integration of AI capabilities, and solid footing in commercial real estate, projecting notable growth in EBITDA margins and earnings per share in the foreseeable future.
• The announcement of a $1.5 billion share repurchase program and consistent revenue growth further bolstered the positive outlook on CoStar Group, outweighing concerns related to the stock trading below its 200-day moving average.

22.00.2026 - CSGP Stock was up 5.0%

• A recent high-value sale of a new construction McDonald's drive-thru for $3.23 million signals strong investor interest in essential-use assets with long-term leases, potentially boosting confidence in commercial real estate investments and benefiting companies like CoStar Group.
• CoStar Group's Founder and CEO, Andy Florance, ranking among the top ten on the 2026 SP 200 list for his leadership in transforming the residential real estate industry, could have positively influenced investor sentiment towards the company, leading to increased buying activity and driving the stock price higher.
• Homes.com being recognized as the fastest-growing residential real estate portal in the U.S., known for its innovative features and high visitor traffic, may have contributed to the bullish movement of CSGP stock as investors anticipate continued growth and success for CoStar Group in the real estate market.

28.00.2026 - CSGP Stock was down 5.7%

• CoStar Group (CSGP) stock saw a strong bearish movement due to activist investor Third Point's campaign for changes within the company, including a board overhaul and reevaluation of its Homes.com strategy.
• The market reacted negatively to criticisms of CoStar's poor capital allocation, weak oversight, and substantial value destruction, leading to concerns about the company's future performance.
• Investors' cautious optimism about potential positive changes was overshadowed by uncertainties surrounding CoStar's residential business missteps and the ongoing proxy battle.
• The bearish movement in CSGP stock reflects growing investor skepticism about the company's strategic direction in light of calls for significant reforms and the persistent underperformance of Homes.com.

16.00.2026 - CSGP Stock was up 5.1%

• CoStar Group (CSGP) saw bullish activities as investors responded favorably to the upcoming earnings report and positive guidance for Q4 2025.
• The reclassification to a "hold" rating by BNP Paribas and the unveiling of a $1.5 billion share repurchase plan are likely factors that lifted investor confidence in the stock's undervaluation.
• Analysts' aggregated ratings and price projections, despite EPS adjustments, reflect an optimistic outlook on CoStar Group's future performance.
• The combined favorable prospects and strategic maneuvers by the company might have influenced the bullish market trend witnessed recently.

29.00.2026 - CSGP Stock was down 6.2%

• CoStar Group saw a decline in the market today, potentially influenced by the pressure from activist investor Third Point concerning its Homes.com strategy and capital allocation decisions.
• Third Point's critique of CoStar's Homes.com investments and management choices may have unsettled investors, leading to a sell-off of CoStar's shares.
• Third Point's announcement of plans to nominate directors to CoStar's board likely created uncertainty about the company's future leadership and strategic path, contributing to negative market sentiment.
• Despite CoStar's defense of its Homes.com strategy and initiation of a $1.5 billion share repurchase program, investors may be observing the proxy battle with Third Point before re-establishing confidence in CoStar's stock.

29.00.2026 - CSGP Stock was down 5.1%

• CoStar Group experienced a notable downturn in its stock value today, likely reflecting investor apprehensions post Third Point's critique and advocacy for strategic alterations.
• The decision to retain Homes.com despite Third Point's pressure, alongside the announcement of a $1.5 billion share repurchase initiative, might have instigated uncertainties about the company's future trajectory.
• Market response indicates investor caution amidst the ongoing proxy battle and potential disruptions to CoStar's growth plans, resulting in a pessimistic outlook on the stock.
• Despite CoStar's efforts to support its Homes.com strategy and delineate growth forecasts, market sentiment appears pessimistic towards the stock due to the activist involvement and capital allocation concerns, influencing today's downturn.

09.00.2026 - CSGP Stock was down 5.3%

• CoStar Group's stock experienced a bearish trend, influenced by several factors:
• A reduction in CSGP's price target by BMO Capital from $77 to $72, highlighting concerns related to adjusted EPS guidance and profitability challenges with Homes.com.
• Despite the positive uptick in U.S. office leasing, market sentiment may have been dampened by perceptions of margin erosion in CoStar's non-Homes.com segments.
• Downward revisions in price targets by various brokerages, including Needham & Company LLC, likely intensified selling pressures on the stock.
• The company's initiation of a $1.5 billion share repurchase plan and adjustments to executive compensation could be perceived as responsive actions to address feedback from shareholders, possibly indicating internal issues within the company.

13.00.2026 - CSGP Stock was up 5.6%

• The rise in CSGP's stock price is linked to the company's impressive Q3 earnings performance, surpassing expectations with $0.23 EPS and $833.6 million in revenue.
• Despite several price target downgrades from analysts, with one lowering its target to $75 from $100, the market appears more focused on the positive earnings results.
• The announcement of a $1.5 billion share repurchase program by CoStar Group has also bolstered investor confidence in the company's future growth prospects.
• In summary, today's positive movement in CSGP's stock price is driven by a combination of strong earnings, strategic announcements, and market sentiment, with the impact of analyst adjustments being overshadowed.

07.00.2026 - CSGP Stock was down 4.5%

• The announcement of a new $1.5 billion share repurchase program and profitability forecasts for Homes.com by 2030 did not receive a positive response from investors, resulting in a downward trend in the stock price.
• Despite optimistic revenue projections and investments in Homes.com, investor apprehension regarding the prolonged timeline for profitability and CoStar Group's ability to meet its goals may have influenced the market sentiment.
• Investor reactions indicate a preference for more immediate returns or clear visibility on the path to profitability, leading to a decline in CSGP stock.
• The bearish movement could be linked to investors capitalizing on profits, potentially disappointed by the absence of immediate positive catalysts in the company's disclosures.

07.00.2026 - CSGP Stock was down 5.1%

• The unveiling of a $1.5 billion share repurchase program by CoStar Group initially instilled confidence in investors. However, the subsequent downturn in the stock suggests that concerns about the company's future growth may be weighing on market sentiment.
• While CoStar Group presented an optimistic forecast for 2026 and set medium-term targets, including substantial Adjusted EBITDA growth, market response indicates that investors might be scrutinizing different aspects such as profitability uncertainties and insider transactions.
• The report on Rockpoint's investment in New York's office real estate sector underscores rising demand in the field, potentially diverting investor interest from CoStar Group and adversely affecting its stock performance.
• The decrease in holdings by Robeco Institutional Asset Management B.V. in Check Point Software Technologies Ltd. may imply a broader trend of portfolio adjustments within the technology domain, triggering a sector-wide pessimism that impacted CoStar Group's shares today.