Shares in CoStar Group (CSGP), which operates multiple online marketplaces including real estate, climbed on Monday after hedge fund Third Point said it plans to pressure the company to switch up its board of directors.
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Third Point, in a letter to the company’s board, noted that it is preparing a slate of new nominees for CoStar’s eight-member board. The activist investor also intends to pressure the Apartments.com and Homes.com parent to alter its strategy, including rolling back its push into the residential real estate segment.
Third Point Turns Up the Heat on CoStar’s Strategy
The development comes as Third Point’s standstill agreement with CoStar Group — a contract that prevents temporary interference in a business affair for a set periiod — expired at midnight on January 27. In the letter, the activist investor criticized the “anemic performance” of the company’s shares compared to the broader market — CSGP has fallen about 14% over the last twelve months.
Furthermore, the hedge fund argued that “disastrous capital allocation policies” enabled CEO Andy Florance “to sink billions of shareholder dollars into an ill-conceived and hopelessly executed strategy to build an online classifieds business in the residential real estate (RRE) industry.”
CoStar Books $31M Quarterly Loss
In its recent Q3 2025 earnings results for the period ending September 30, CoStar reported a net loss of $31 million despite growing its revenue by 20% from the prior-year quarter to $834 million. The company is looking to remain competitive and last year introduced a voice search feature on Homes.com.
Homes.com is the company’s flagship residential portal. Earlier this month, CoStar stated plans to implement “meaningful moderation” in its spending on the brand.
Is CSGP a Good Stock to Buy?
On Wall Street, CoStar Group’s shares have a Moderate Buy consensus rating from analysts. This is based on nine Buys, four Holds, and one Sell issued by 14 analysts over the past three months.
However, the average CSGP price target of $77.38 implies about 14% growth potential.
