WASHINGTON—Michael J. Desmarais, Chief Human Resources Officer at CoStar Group , Inc. (NASDAQ:CSGP), has recently sold 5,500 shares of the company's common stock. The transaction, which took place on November 26, 2024, was executed at an average price of $79.88 per share, totaling approximately $439,340.
Following this transaction, Desmarais retains ownership of 58,798 shares in CoStar Group. This includes 211 shares acquired through the company's Employee Stock Purchase Plan since his last reported filing. The sale price per share ranged from $79.71 to $80.23.
In other recent news, CoStar Group demonstrated robust growth with an 11% year-over-year revenue increase in Q3, reaching $693 million. The company's net income also significantly rose to $53 million, up from $7 million in Q1 2024. CoStar Group completed the acquisition of Visual Lease, a leading lease administration and accounting software provider, which is expected to enhance CoStar's Real Estate Manager business and offer expanded lease management and accounting solutions to a broader customer base.
Analysts from Citi maintained a Buy rating on CoStar Group, albeit reducing the price target from $97.00 to $90.00, based on a sum-of-the-parts analysis. Similarly, Needham reiterated a Buy rating on CoStar Group shares, maintaining a positive outlook due to a strategic shift in sales and a more favorable commercial real estate market environment.
CoStar Group plans to significantly expand its sales force, targeting over 275 hires by the end of 2024 and potentially doubling in 2025. The company's revenue guidance for the full year 2024 is set between $2.72 billion and $2.73 billion, with an adjusted EBITDA projected to be between $205 million and $215 million. These recent developments indicate a period of transition for CoStar, with expectations that bookings, which have reached $44 million, may have stabilized.
InvestingPro Insights
As we examine Michael J. Desmarais' recent stock sale, it's worth considering CoStar Group's current financial position and market performance. According to InvestingPro data, CoStar Group boasts a substantial market capitalization of $33.64 billion, reflecting its significant presence in the Real Estate Management & Development industry.
The company's revenue for the last twelve months as of Q3 2024 stood at $2.67 billion, with a notable growth rate of 11.67%. This growth trajectory aligns with CoStar's status as a prominent player in its sector, as highlighted by one of the InvestingPro Tips.
However, investors should note that CoStar Group is trading at a high earnings multiple, with a P/E ratio of 189.7. This valuation metric, coupled with the InvestingPro Tip indicating that the company is trading at high EBIT and EBITDA multiples, suggests that the stock may be priced at a premium relative to its earnings.
For those seeking a more comprehensive analysis, InvestingPro offers additional insights, with 12 more tips available for CoStar Group. These tips could provide valuable context for understanding the implications of insider transactions like Desmarais' stock sale.
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