HubSpot (NYSE:HUBS) Downgraded to “Neutral” Rating by Citigroup

HubSpot (NYSE:HUBS) was downgraded by equities research analysts at Citigroup from a “buy” rating to a “neutral” rating in a research note issued to investors on Friday, Marketbeat Ratings reports. They currently have a $230.00 target price on the software maker’s stock. Citigroup’s price target suggests a potential downside of 5.64% from the company’s previous close.

A number of other research analysts have also recently commented on the company. Wall Street Zen cut HubSpot from a “strong-buy” rating to a “buy” rating in a research note on Sunday, April 19th. Needham & Company LLC reduced their price target on shares of HubSpot from $700.00 to $300.00 and set a “buy” rating on the stock in a research report on Thursday, February 12th. Barclays decreased their price target on shares of HubSpot from $525.00 to $300.00 and set an “overweight” rating on the stock in a research note on Thursday, February 12th. BTIG Research restated a “buy” rating and issued a $300.00 price objective on shares of HubSpot in a report on Tuesday, April 21st. Finally, BMO Capital Markets cut their price objective on shares of HubSpot from $385.00 to $285.00 and set an “outperform” rating for the company in a research note on Thursday, February 12th. Twenty-two equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $358.70.

HubSpot Stock Performance

HubSpot stock opened at $243.74 on Friday. The stock has a market cap of $12.55 billion, a P/E ratio of 280.16, a PEG ratio of 3.21 and a beta of 1.23. The firm’s fifty day moving average price is $243.61 and its 200-day moving average price is $317.94. HubSpot has a fifty-two week low of $187.45 and a fifty-two week high of $682.57.

HubSpot (NYSE:HUBS) last released its quarterly earnings results on Thursday, May 7th. The software maker reported $2.72 earnings per share for the quarter, beating the consensus estimate of $2.47 by $0.25. The firm had revenue of $881.00 million for the quarter, compared to analysts’ expectations of $863.32 million. HubSpot had a return on equity of 3.64% and a net margin of 1.47%.The company’s revenue was up 23.4% compared to the same quarter last year. During the same quarter last year, the firm posted $1.84 EPS. HubSpot has set its Q2 2026 guidance at 3.000-3.020 EPS and its FY 2026 guidance at 13.040-13.120 EPS. Sell-side analysts predict that HubSpot will post 3.66 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Brian Halligan sold 8,500 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $262.75, for a total transaction of $2,233,375.00. Following the completion of the sale, the director owned 370,558 shares of the company’s stock, valued at approximately $97,364,114.50. This represents a 2.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Erika Ashley Fisher sold 915 shares of the firm’s stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $236.66, for a total transaction of $216,543.90. Following the completion of the transaction, the insider owned 16,270 shares in the company, valued at $3,850,458.20. This represents a 5.32% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 25,968 shares of company stock worth $6,453,082 over the last ninety days. Insiders own 4.00% of the company’s stock.

Institutional Investors Weigh In On HubSpot

Several institutional investors have recently added to or reduced their stakes in the company. Strategic Advocates LLC purchased a new position in shares of HubSpot in the third quarter valued at about $25,000. Turning Point Benefit Group Inc. bought a new stake in shares of HubSpot in the third quarter worth about $25,000. Exane Asset Management bought a new stake in shares of HubSpot in the third quarter worth about $30,000. Rakuten Securities Inc. increased its holdings in HubSpot by 783.3% during the 2nd quarter. Rakuten Securities Inc. now owns 53 shares of the software maker’s stock valued at $30,000 after purchasing an additional 47 shares during the period. Finally, Westside Investment Management Inc. raised its position in HubSpot by 80.5% during the 3rd quarter. Westside Investment Management Inc. now owns 74 shares of the software maker’s stock valued at $33,000 after purchasing an additional 33 shares during the last quarter. Hedge funds and other institutional investors own 90.39% of the company’s stock.

Key Stories Impacting HubSpot

Here are the key news stories impacting HubSpot this week:

• Positive Sentiment: Q1 beat and strong top-line: HubSpot reported $2.72 EPS vs. $2.47 expected and $881M revenue (+23% y/y), showing durable growth and subscription strength. Read More.
• Positive Sentiment: Raised guidance: management lifted Q2 EPS to $3.00–3.02 (vs. ~2.40 consensus) and FY26 EPS to $13.04–13.12 (well above consensus), which, if achieved, materially improves FY earnings outlook. Read More.
• Neutral Sentiment: AI product roadmap remains a key driver of the bull case: HubSpot’s Breeze AI agents and broader “AI-first CRM” messaging underpin longer-term revenue/margin upside, but investors want proof of adoption and retention. Read More.
• Negative Sentiment: Big post-earnings selloff despite the beat: shares fell sharply (reports ~16%) as players reacted to mixed signals — strong EPS but some guidance/revenue details and execution risk sparked profit-taking and short-term volatility. Read More.
• Negative Sentiment: Investor concerns and risk narrative: analysts and commentators flagged mounting risks (AI-driven churn fears, post-earnings volatility and execution/valuation questions) even as some see the pullback as a buying opportunity. Read More.
• Negative Sentiment: Insider sale: an officer sold ~$216.5k of stock, which can be perceived negatively by traders focused on insider activity. Read More.

About HubSpot

HubSpot, Inc is a software company that develops a cloud-based customer relationship management (CRM) platform designed to help organizations attract, engage and delight customers. Its primary business activities center on providing integrated marketing, sales and customer service tools that support inbound marketing strategies, content management, lead nurturing, sales automation and customer support workflows.

The company’s product suite is organized around modular “hubs” built on a central CRM: Marketing Hub, Sales Hub, Service Hub, CMS Hub and Operations Hub.