Exploring CoStar Group, Inc. (CSGP) Investor Profile: Who’s Buying and Why?

You're looking at CoStar Group, Inc. (CSGP) and wondering why the stock seems to defy gravity, even as the commercial real estate (CRE) market faces headwinds-honestly, who is buying? The answer is institutional money, and a lot of it: major players like Vanguard Group Inc. and BlackRock, Inc. collectively hold tens of millions of shares, with institutional ownership sitting at a staggering 96.60% of the company. That kind of concentration isn't just a fun fact; it tells you the smart money is betting big on the company's pivot, especially its residential push like Homes.com. They are looking past the Q3 2025 net loss of $31 million and focusing on the underlying operational strength, like the 20% year-over-year revenue growth to $834 million for the quarter, and the full-year revenue guidance of up to $3.24 billion. So, are the big funds seeing something you're missing in this $28.32 billion market cap giant, or are they setting up for a correction? Let's break down exactly who is accumulating those 70,056,441 shares held by Vanguard Group Inc. and why their thesis matters for your portfolio right now.

Who Invests in CoStar Group, Inc. (CSGP) and Why?

You're looking at CoStar Group, Inc. (CSGP) and wondering who's actually buying this stock and what their endgame is. The direct takeaway is that CoStar Group, Inc. is overwhelmingly an institutional play, with nearly all investors betting on its continued market dominance and high-growth trajectory, not on dividends or deep value.

The investor base is dominated by large, long-term financial institutions. This is a classic growth stock ownership profile: the big money is buying the story of market leadership and expansion. You can see a full history of how this company built its position in the market here: CoStar Group, Inc. (CSGP): History, Ownership, Mission, How It Works & Makes Money.

Key Investor Types: The Institutional Fortress

CoStar Group, Inc.'s ownership structure is a fortress of institutional capital. As of late 2025, hedge funds and other institutional investors own a staggering 96.60% of the company's stock. This leaves a minimal float for individual, or retail, investors, who hold roughly 2.31% of the shares. Insiders, like executives and directors, own a small but significant stake, around 1.09%.

This high institutional concentration means the stock's price movements are largely dictated by the strategic decisions of a few hundred major funds, not the day-to-day trading of individual investors. It's a conviction stock for the big players.

The top institutional holders are a list of the world's largest asset managers, which often use passive (index-tracking) and active growth strategies:

• Vanguard Group, Inc.: Holds over 70 million shares.
• BlackRock, Inc.: Holds over 36 million shares.
• Baron Capital Group, Inc.: Holds nearly 20 million shares.

Investment Motivations: Growth at a Premium

Investors are drawn to CoStar Group, Inc. for one primary reason: growth. The company has a remarkable track record, having achieved its 57th consecutive quarter of double-digit revenue growth as of the second quarter of 2025. This consistency is what institutions pay a premium for.

There are no dividends-this is a pure growth machine that reinvests every dollar back into its expansion, especially in its residential platform, Homes.com. The trade-off is clear: you forgo income now for the promise of much higher capital appreciation later. The market is defintely pricing this in, as the stock has a high Price-to-Earnings (P/E) ratio of over 1,300.00, indicating investors are willing to pay a massive premium for future earnings.

Here's the quick math on the 2025 outlook that fuels this motivation:

Investment Strategies: Long-Term Conviction

The dominant strategy among CoStar Group, Inc.'s investors is a long-term holding strategy, often classified as 'growth investing' or 'secular growth.' This is not a stock for short-term traders, although some hedge funds may use it for tactical plays.

The presence of index funds like Vanguard and BlackRock means a large portion of the shares are held passively, reflecting CoStar Group, Inc.'s inclusion in major indices like the S&P 500. This passive buying creates a constant, structural demand for the stock. Active managers, meanwhile, are focused on the company's ability to execute its expansion into the residential market with Homes.com and maintain its monopoly-like position in commercial real estate data (CRE).

• Passive Long-Term: Index funds hold for decades, providing a stable floor for the stock price.
• Active Growth: Managers buy based on the company's forecast annual earnings growth rate of 242.9% for 2025-2027, which is far ahead of the US Real Estate Services industry average.
• Risk Mapping: The primary near-term risk is the high cost associated with the Homes.com build-out, which resulted in a $15 million net loss in Q1 2025 (mostly due to the Matterport acquisition). Investors accept this short-term dip in profitability for long-term market share gains.

The consensus among Wall Street analysts is a 'Moderate Buy,' with an average 12-month price target of $94.15 as of late 2025, suggesting a belief in significant upside from current levels. Your next step should be to look at your own portfolio's risk tolerance and decide if you are ready to own a high-conviction growth story with a premium price tag.

Institutional Ownership and Major Shareholders of CoStar Group, Inc. (CSGP)

If you're looking at CoStar Group, Inc. (CSGP), the first thing to understand is that it's an institutionally-dominated stock. This isn't a retail-driven story; it's a battleground for the world's largest money managers, which means their investment decisions fundamentally drive the stock price and the company's strategic direction.

As of the third quarter of 2025, institutional investors-think mutual funds, pension funds, and endowments-collectively own an overwhelming majority of the company, holding approximately 89.15% of the outstanding shares. This high concentration, totaling over 538 million shares, gives them significant sway over the stock's trajectory and corporate governance. For a deeper dive into the company's origins and business model, you can check out CoStar Group, Inc. (CSGP): History, Ownership, Mission, How It Works & Makes Money.

The Top Institutional Investors: Who's Buying?

The shareholder base is anchored by the giants of passive and active money management. These firms are not just holding shares; they are the market, and their movements are what you need to track. The top holders, based on their September 30, 2025, 13F filings, are a list of the usual suspects, which defintely adds a layer of stability to the stock.

Here's the quick math on the top five, representing a massive chunk of the total institutional value:

The Vanguard Group and BlackRock, Inc. alone hold a substantial percentage, mostly through index funds (like the Vanguard Total Stock Market Index Fund and BlackRock's iShares ETFs). This means a large portion of CoStar Group, Inc.'s stock is essentially on autopilot, bought and held as a component of major market indices.

Recent Shifts: Are Institutions Accumulating or Distributing?

Looking at the Q3 2025 filings, the trend is clear: the biggest players are still accumulating. This is a strong signal of confidence in the company's long-term growth story and its dominant position in the commercial real estate data and marketplace segments.

For example, Vanguard Group Inc. increased its position by over 1.2 million shares in the third quarter of 2025. BlackRock, Inc. also added a significant chunk, boosting its stake by more than 1.09 million shares. This accumulation suggests they see continued revenue growth, which CoStar Group, Inc. delivered with Q3 2025 revenue reaching $833.6 million, a 20.4% year-over-year increase.

However, it's not all one-way traffic. Some active managers are taking profits or reallocating capital. Bamco Inc /Ny/, for instance, reduced its stake by 424,369 shares in the same quarter. Plus, you saw new, large positions initiated earlier in 2025, like Mizuho Markets Americas LLC's roughly $586 million position in Q1 2025, which shows conviction from new entrants.

• Vanguard added 1,208,958 shares in Q3 2025.
• BlackRock added 1,093,724 shares in Q3 2025.
• Bamco Inc /Ny/ sold 424,369 shares in Q3 2025.
• Massachusetts Financial Services Co /Ma/ increased its stake by 12.468%.

The Institutional Impact on Stock and Strategy

When institutions own this much of a company, their role shifts from mere shareholders to key stakeholders who can influence strategy (corporate governance). Their presence provides a floor for the stock price because their sheer size makes them less prone to panic selling than individual investors. They are the definition of long-term capital.

The high institutional ownership is a double-edged sword: it offers stability, but it also means management is under constant pressure to deliver on growth metrics like the $0.820-$0.840 EPS guidance for the full fiscal year 2025. Their expectations for continued double-digit revenue growth-a streak CoStar Group, Inc. has maintained for 58 consecutive quarters as of Q3 2025-are baked into the valuation. If the company misses a beat, the sell-off can be swift and severe, simply due to the massive dollar value of shares these institutions can move.

Their focus is on sustained market dominance and accretive acquisitions. They are essentially endorsing the company's aggressive strategy to grow its residential marketplaces, like Homes.com, and its core commercial data business. The consensus analyst rating of a 'Moderate Buy' with an average price target of $93.38 reflects this institutional confidence in the company's execution.

Key Investors and Their Impact on CoStar Group, Inc. (CSGP)

The investor profile for CoStar Group, Inc. (CSGP) is dominated by institutional money, which is a clear signal of confidence in the company's long-term market position. These large funds own a staggering portion of the company, and their moves are what defintely drive the stock's volatility and stability.

As of late 2025, institutional investors hold approximately 96.60% of CoStar Group, Inc.'s stock, representing a total value of holdings around $28.175 billion. This level of ownership means the company's stock price and strategic direction are highly sensitive to the sentiment of a few dozen major players. When institutions own this much, they become the market.

• High institutional ownership signals a mature, lower-risk growth stock.
• Insider ownership is low, at about 1.18%, which is typical for a large, established tech company.

The Heavy Hitters: Who Owns the Largest Stakes?

The top shareholders are the usual suspects in the world of mega-cap investing-the index fund giants and a few active managers with deep pockets. These firms are generally passive holders, meaning they track a benchmark index like the S&P 500, but their sheer size gives them immense influence on corporate governance matters, such as board elections and executive compensation.

The largest institutional holders include Vanguard Group Inc and BlackRock, Inc., two firms I know well from my time as an analyst. Vanguard is the single largest holder, and their position is critical. For a deeper dive into the company's underlying metrics, you should read Breaking Down CoStar Group, Inc. (CSGP) Financial Health: Key Insights for Investors.

Here's a snapshot of some major institutional ownership data as of the first half of the 2025 fiscal year:

The dominance of Vanguard and BlackRock, Inc. means their investment thesis is simple: CoStar Group, Inc. is a core technology stock that belongs in a diversified portfolio. They are buying the market, not necessarily the story. Still, their consistent buying provides a strong floor for the stock price.

Recent Investor Moves and Market Signals

The most telling insights come from recent activity, specifically in the first and second quarters of 2025. We've seen a mix of large new positions and existing funds scaling up their bets, which suggests a renewed appetite for the stock despite its high valuation multiples.

For example, Vanguard Group Inc increased its position by 4.1% in Q1 2025, adding over 2.7 million shares. This is a massive vote of confidence. Also, the hedge fund activity is notable: Third Point LLC and SG Capital Management LLC both initiated new, nine-figure positions in Q1 and Q2 2025, respectively. That's a clear signal that active managers see a near-term catalyst or a long-term undervaluation, even with the stock trading at a high price-to-sales ratio compared to its peers.

On the other side of the ledger, insider selling has been present. For instance, insider Frederick G. Saint sold 25,000 shares in Q2 2025 for roughly $2.26 million. While this is a small percentage of the total float, it's a reminder that not everyone is uniformly bullish. Plus, the company itself is actively managing its capital structure by accelerating a $500 million stock buyback program, a move that is often seen as a direct way to boost earnings per share (EPS) and appease shareholders looking for capital return.

Market Impact and Investor Sentiment

You want to know who is buying CoStar Group, Inc. (CSGP) and why. The short answer is that the institutional conviction is high, but the sentiment is currently complex-a mix of long-term belief and near-term caution. Big money holds the vast majority of the stock, but recent price action shows a clear wobble.

Institutional investors, the massive funds like Vanguard Group Inc. and BlackRock, Inc., own a staggering 96.60% of the company's common stock. This level of ownership means the stock's direction is defintely dictated by their collective moves. For example, Vanguard Group Inc. increased its stake by 0.6% in the second quarter of 2025, bringing its total holding to 68,847,483 shares, valued at approximately $5.54 billion. That is a serious vote of confidence in the long-term data and marketplace thesis.

Still, the overall investor sentiment is best described as a 'Moderate Buy' consensus from Wall Street analysts, but the underlying mood is tempered. The 2025 Annual General Meeting review suggested a 'HOLD' stance, noting the stock might be fully priced given its steady, but not explosive, growth trajectory.

• Vanguard Group Inc. is the largest institutional holder.
• Institutional ownership sits at a dominant 96.60%.
• The core belief is in CoStar's data moat and market dominance.

Recent Market Reactions to Ownership Shifts

The stock market's response to CoStar Group, Inc.'s recent performance and ownership changes has been volatile, showing the tension between its core business strength and its high-cost growth investments. In the month leading up to November 2025, the stock slipped almost 12%, and it is down 4.9% year-to-date. That kind of slide tells you investors are reassessing something.

The most dramatic recent move came after the Q3 2025 earnings report on October 28, 2025. Despite beating adjusted earnings per share (EPS) and revenue estimates-reporting $0.23 EPS versus the consensus of $0.19, and revenue of $833.6 million-the shares plunged 9.9% in the next trading session. Here's the quick math: investors focused on the cost of growth and margin pressure, not just the top-line beat. Conversely, the Q2 2025 results, which showed revenue surging 15.2% year-over-year to $781 million and adjusted EBITDA skyrocketing 107.3% to $85 million, drove the stock up 6.9% immediately. The market is hyper-sensitive to the profitability of the Homes.com investment.

Analyst Perspectives on Key Investor Impact

The analyst community is split, which is why you see a 'Moderate Buy' consensus. Out of 18 analysts, the breakdown shows a clear bias toward the long-term story, but with a significant contingent of caution. The average price target is aggressive, sitting around $93.38 to $94.46, suggesting a substantial upside from the current price levels.

The divergence in ratings is rooted in the company's two-speed business model. Analysts like Citizens, who reiterated a 'Market Outperform' rating with a $100 price target, focus on the core commercial real estate business (CoStar Suite and LoopNet), where the Commercial Real Estate Information and Marketplace EBITDA margins have expanded to a healthy 47%. This segment is a cash machine. On the other side, Wells Fargo recently lowered its price target to $60.00 on November 17, 2025, maintaining an 'Underweight' rating. Their concern centers on the aggressive, margin-limiting investment in Homes.com and rising competition from Zillow Rentals in the rental space, which could impact the Apartments.com platform. You can read more about the company's long-term strategy and what drives this investment in their Mission Statement, Vision, & Core Values of CoStar Group, Inc. (CSGP).

For fiscal year 2025, the company's guidance points to revenue in the range of $3.23 billion to $3.24 billion and adjusted EPS between $0.82 and $0.84. The core question for investors is whether the significant spending on the residential side will transition from a drag on net income to a major growth engine, justifying the current valuation. The table below summarizes the analyst sentiment:

The takeaway is simple: institutional investors are buying the long-term vision of a dominant, end-to-end real estate data giant, but they are still punishing the stock for the short-term cost of that ambition. Your action is to monitor the Homes.com sales momentum and margin trajectory in the next two quarters.