CoStar Group (CSGP) Declined on Shortfall in 2023 Guidance

Conestoga Capital Advisors, an asset management company, released its “Mid Cap Strategy” first-quarter 2023 investor letter. A copy of the same can be downloaded here. The Mid Cap Composite rose 10.23% net of fees in the first quarter, compared to the Russell Midcap Growth Index’s 9.14% return. The strategy primarily benefitted from the stock selection while the sector allocation also contributed to the relative performance. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Conestoga Mid Cap Strategy highlighted stocks like CoStar Group, Inc. (NASDAQ:CSGP) in the first quarter 2023 investor letter. Headquartered in Washington, the District of Columbia, CoStar Group, Inc. (NASDAQ:CSGP) provides information, analytics, and marketplace services to commercial real estate. On May 26, 2023, CoStar Group, Inc. (NASDAQ:CSGP) stock closed at $78.49 per share. One-month return of CoStar Group, Inc. (NASDAQ:CSGP) was 2.00%, and its shares gained 27.63% of their value over the last 52 weeks. CoStar Group, Inc. (NASDAQ:CSGP) has a market capitalization of $32.066 billion.

Conestoga Mid Cap Strategy made the following comment about CoStar Group, Inc. (NASDAQ:CSGP) in its Q1 2023 investor letter:

“CoStar Group, Inc. (NASDAQ:CSGP): CSGP is a leading provider of online real estate marketplaces, information, and analytics for commercial and residential property markets. CSGP reported solid 4Q22 results but guidance for 2023 was significantly below investor’s expectations. The shortfall in 2023 guidance was primarily caused by the company’s higher-than-anticipated investment in its residential segment. While revenue guidance for 2023 was roughly in-line with expectations, the company surprised the market with its EBITDA guide, which was well below consensus estimates. While disappointing from a short-term perspective, CSGP’s management team has a strong history of generating significant returns from its investments.”

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CoStar Group, Inc. (NASDAQ:CSGP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held CoStar Group, Inc. (NASDAQ:CSGP) at the end of first quarter 2023 which was 46 in the previous quarter.

We discussed CoStar Group, Inc. (NASDAQ:CSGP) in another article and shared Baron Asset Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.