CoStar Group CEO Andy Florance purchased $2.5 million of shares in the open market on May 1 at prices between $35.17 and $35.82, bringing his total year-to-date buying to over $5 million. This marks his second major acquisition in two months and signals his confidence in the stock’s undervaluation.

Activist investor Third Point, led by Dan Loeb, fully exited its position on April 10 after calling for a board overhaul and a renewed focus on the core commercial real estate business. The departure removes an imminent proxy contest threat and may reduce activist-driven volatility.

CoStar reported Q1 revenue of $897 million, up 23% year-over-year, and adjusted EBITDA of $132 million, more than double the prior year. The company cited a new AI application launch driving a 119% surge in organic residential site traffic as a key growth driver.

Despite operational growth, shares have declined 32% over three months and 54% over a year due to investor concerns over AI threats in software and capital demands for Homes.com expansion. Management views significant upside, positioning the stock for potential recovery.