Andrew Florance, President and CEO of CoStar Group (CSGP), recently bought 14,731 shares. The buy increased his position by 1%, and came to a total cost of $1,099,966.
This marks the first insider buy at the company over the past two years. Insiders, including the CEO, CFO, and several directors, have been regular and consistent sellers of shares. That includes a sale from a director amounting to over $5.3 million the same day the CEO bought shares.
Overall, CoStar Group insiders own 1.2% of shares.
The real estate analytics firm is up just 1% over the past year, as the real estate market has been hobbled by high interest rates, fire sales, and a slow-moving office market.
CoStar managed to grow revenues by 11% last year, but earnings fell by a hefty 42%. Profit margins are slim for an analytics firm, at 7%, and the stock still trades at 66 times earnings.
Action to take: Shares are about 25% off their 52-week high from the spring, and have traded sideways for a few months now. Interested investors could buy a small stake here and use any further weakness to add to the position.
For traders, shares are at the low end of their range, and could see a short-term bounce higher. The January 2025 $80 calls, last trading for about $1.85, might deliver mid-double-digit returns on such a move.
Disclosure: The author of this article has no position in the company mentioned here, and does not intend to trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.