CoStar Group shares jumped 2.5% Wednesday after top executives including CEO Andy Florance bought stock amid activist pressure. The purchases come as the company faces a 27% year-to-date decline and battles hedge funds Third Point and D.E. Shaw over its Homes.com residential expansion. The stock hit a 52-week low of $43.16 yesterday.

Activists argue CoStar has destroyed $11 billion in market value through its residential push, with D.E. Shaw calling it a "quixotic quest" that has distracted from high-margin commercial real estate. Despite the assault, Florance remains committed to the strategy, framing it as essential for the company's digital ecosystem evolution. The board has authorized a $1.5 billion share repurchase program and plans to cut Homes.com spending by $300 million in 2026.

For 2026, CoStar projects revenue between $3.78 billion and $3.82 billion with adjusted EBITDA up to $800 million. The insider buying appears designed to counter criticism that management hasn't shared the pain with regular investors. Florance purchased 55,720 shares while President Fred Saint bought 20,000 shares. The upcoming annual meeting will likely serve as a referendum on whether Florance's vision for residential real estate dominance will prevail over activist demands for retreat.