William Blair Reiterates Outperform Rating on CoStar Group (CSGP) amid CEO buy

William Blair analyst Stephen Sheldon reiterated an Outperform rating on CoStar Group (NASDAQ: CSGP)

The analyst commented, "We wanted to highlight that CoStar’s CEO Andy Florance purchased 55,720 shares on the open market at a price $44.52 per share on February 27 (52-week low at $43.16), increasing his total position by roughly 3.5%, to 1.6 million shares (~0.5% of shares outstanding). His total position in CoStar is now worth around $72 million at today’s price, and we believe investors have been wanting to see his equity position build to better align his incentives with those of shareholders. While Florance does receive significant share-based compensation, the last time he purchased shares on the open market was in October 2024, when he bought 14,731 shares for roughly $1.1 million at $74.67 per share, but beyond that, he had not made any other open-market purchases over the prior 15-plus years based on the data we reviewed. We believe investors will be encouraged by this rare open-market purchase from Florance, given recent AI disintermediation and competitive concerns that have snowballed and pressured the shares, and would likely welcome additional insider buying as a further signal of confidence. At the time of publishing, shares of Costar were up roughly 1% against a tough tape (major indices all down around 2% on rising geopolitical tensions)."

For an analyst ratings summary and ratings history on CoStar Group click here. For more ratings news on CoStar Group click here.

Shares of CoStar Group closed at $45.17 yesterday.

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