GET DAILY SIGNALSWhy Is CoStar Group (CSGP) Stock Down -9.37% Today?
Key Takeaways
- Shares of CSGP fell 9.37% to $29.01, extending losses after third-quarter results.
- The primary catalyst was weak net new bookings of $37 million, which overshadowed a revenue and profit beat.
- Management pointed to slower-than-expected sales-force growth and soft residential real estate conditions in the U.S., U.K., and Australia.
- Several analysts trimmed price targets following the report, with JPMorgan lowering its target to $44 from $52.
- Broader markets were steady, making this a company-specific, earnings-driven move rather than a sector-wide selloff.
- Traders are watching next for signs of sales-force re-acceleration and any stabilization in residential bookings.
- For more detail on this stock, explore Price Targets, Earnings, and Forecast pages.
- Discover AI-driven trading strategies on Tickeron's Trending AI Robots page.
Opening Summary
CoStar Group, Inc. (CSGP), a leading provider of commercial and residential real estate information, analytics, and online marketplaces — including brands such as CoStar Suite, LoopNet, Apartments.com, and Homes.com — saw its shares plunge 9.37% in Wednesday's session. The stock traded at $29.01, down from a prior close of $32.01. The decline followed the company's third-quarter earnings report, which beat Wall Street's top- and bottom-line estimates but fell short on the metric investors care most about right now: net new bookings.
Earnings Beat, But Weak Bookings Dominate
CoStar delivered solid headline numbers for the third quarter of 2026. Revenue rose 14% year over year to $952 million, adjusted earnings per share of $0.38 exceeded the $0.34 consensus, and adjusted EBITDA doubled year over year to a record $229 million. The company also raised its full-year adjusted EBITDA guidance to a midpoint of $830 million. Despite these positives, the market reaction was decisively negative because annualized net new bookings came in at just $37 million, well below management's expectations.
Net new bookings are a closely watched gauge of future subscription revenue growth, and the shortfall raised concerns that the company's sales engine is losing momentum. On the earnings call, CEO Andy Florance attributed the weakness to economic headwinds and slower-than-expected sales-force growth, noting the sales team has contracted about 10% from a year ago.
Residential Market Pressure Weighs on Outlook
The booking slowdown was compounded by a challenging residential real estate backdrop. Management cited soft conditions across the U.S., U.K., and Australian markets, including record-low pending home sales, elevated multifamily vacancy, and falling home prices in Australia. Lower transaction volume at Domain, CoStar's Australian property portal, also contributed to a revised full-year revenue outlook. While the company raised full-year guidance on a headline basis, the increase was driven largely by the Zonda acquisition; excluding Zonda, the outlook was trimmed modestly.
Analyst Reactions and Target Cuts
The earnings-driven move drew a swift response from Wall Street. JPMorgan lowered its price target on CSGP to $44 from $52 while keeping an Overweight rating, and BTIG reduced its target to $35. The combination of a bookings miss and near-term sales-capacity constraints prompted several analysts to recalibrate growth expectations, even as many acknowledged the company's improving profitability and cost discipline.
Market Context and Trading Activity
The selloff in CSGP stood out as a company-specific reaction rather than a broad market move, with major indices relatively stable during the session. Trading volume ran elevated as investors repositioned around the earnings surprise, reflecting intense scrutiny of the company's growth trajectory. The stock has now extended a difficult year, trading well below its 52-week high as investors weigh a reset in valuation against slower bookings momentum.
What Comes Next for CSGP
Investors will be watching whether CoStar can re-accelerate sales-force hiring and translate its cost-efficiency efforts into renewed bookings growth. Management signaled plans to decentralize recruiting and rebuild sales headcount in 2027, while reiterating a 2028 adjusted EBITDA target of $1.25 billion. Upcoming quarters will test whether the profit-first pivot can coexist with durable top-line expansion. Key risks include persistent residential market weakness, competitive pressure in multifamily advertising, and the pace of integration for recent acquisitions such as Zonda and the pending Vexcel deal.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CSGP in downward trend: price may decline as a result of having broken its higher Bollinger Band on October 22, 2026
CSGP broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 29 similar instances where the stock broke above the upper band. In 22 of the 29 cases the stock fell afterwards. This puts the odds of success at 76%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for CSGP moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 21 similar instances where the indicator moved out of overbought territory. In 12 of the 21 cases, the stock moved lower in the following days. This puts the odds of a move lower at 57%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 46 of 62 cases where CSGP's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 74%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CSGP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 08, 2026. You may want to consider a long position or call options on CSGP as a result. In 49 of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 56%.
The Moving Average Convergence Divergence (MACD) for CSGP just turned positive on October 08, 2026. Looking at past instances where CSGP's MACD turned positive, the stock continued to rise in 27 of 48 cases over the following month. The odds of a continued upward trend are 56%.
CSGP moved above its 50-day moving average on October 15, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for CSGP crossed bullishly above the 50-day moving average on October 20, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 72%.
Following a +7.31% 3-day Advance, the price is estimated to grow further. Considering data from situations where CSGP advanced for three days, in 173 of 302 cases, the price rose further within the following month. The odds of a continued upward trend are 57%.
The Aroon Indicator entered an Uptrend today. In 93 of 154 cases where CSGP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 60%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. CSGP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 84 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 89 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 93 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.407) is normal, around the industry mean (2.122). P/E Ratio (153.000) is within average values for comparable stocks, (53.105). Projected Growth (PEG Ratio) (0.099) is also within normal values, averaging (0.683). Dividend Yield (0.000) settles around the average of (0.105) among similar stocks. P/S Ratio (3.566) is also within normal values, averaging (5.807).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CSGP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
Industry description
Market Cap
High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a provider of information, analytics and marketing services
Industry RealEstateDevelopment
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