5 Stocks to Buy Now According to Leonard A. Potter’s Wildcat Capital Management

4. CoStar Group, Inc. (NASDAQ:CSGP)

Wildcat Capital Management Stake Value: $41,778,000
Percentage of Wildcat Capital Management’s 13F Portfolio: 6.8%
Number of Hedge Fund Holders: 49

CoStar Group, Inc. (NASDAQ:CSGP) is a commercial real estate information, analytics, and online markets provider based in the United States. Leonard A. Potter decreased his fund’s stake in CoStar Group, Inc. (NASDAQ:CSGP) by 10% during Q4, lowering the value of his holding to $41.78 million based on a position of 528,640 shares.

According to Insider Monkey’s database, 49 hedge funds had a stake in CoStar Group, Inc. (NASDAQ:CSGP) as of the end of Q4 2021, with the total value of their holdings being $2.56 billion. Akre Capital Management is the leading shareholder in CoStar Group, Inc. (NASDAQ:CSGP) among that group, with a stake worth over $771.68 million.

Citi analyst Peter Christiansen cut his price target on CoStar Group, Inc. (NASDAQ:CSGP) to $65 from $110 on February 24 but maintained a ‘Buy’ recommendation on the stock.

Baron Growth Fund, in its Q4 2021 investor letter, mentioned CoStar Group, Inc. (NASDAQ:CSGP). Here is what the fund said:

“We have seen our businesses exercise their pricing power more aggressively in recent months. CoStar Group, Inc. management indicated that the new rate card for its Apartment.com marketing network included 7% price increases on average, with prices for some products increasing by up to 20%. The company also resumed annual pricing increases in its core Suite information and analytics business after a multi-year hiatus.

Real estate data and marketing platform CoStar Group, Inc. detracted for the quarter. The company experienced a slowdown in its multi-family marketing platform as a result of record-high apartment occupancy. We believe this condition is temporary and that growth will improve through higher prices and better customer segmentation. The company is pushing into the residential market, which meaningfully expands its total addressable market. While this initiative requires short-term investment, it should ultimately yield high returns and bolster growth and margins.”