HubSpot (NYSE:HUBS) Trading Down 8.5% – Here’s Why

HubSpot, Inc. (NYSE:HUBS)’s stock price traded down 8.5% on Wednesday . The company traded as low as $219.01 and last traded at $219.73. 587,131 shares were traded during trading, a decline of 68% from the average session volume of 1,808,458 shares. The stock had previously closed at $240.16.

Analysts Set New Price Targets

A number of analysts have commented on HUBS shares. Barclays reduced their target price on HubSpot from $300.00 to $270.00 and set an “overweight” rating for the company in a report on Monday, May 11th. Royal Bank Of Canada reduced their target price on HubSpot from $400.00 to $350.00 and set an “outperform” rating for the company in a report on Friday, May 8th. JPMorgan Chase & Co. reduced their target price on HubSpot from $530.00 to $425.00 and set an “overweight” rating for the company in a report on Friday, May 8th. Zacks Research lowered HubSpot from a “strong-buy” rating to a “hold” rating in a report on Tuesday, April 14th. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $382.00 price target on shares of HubSpot in a research note on Friday, May 8th. Twenty-two equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, HubSpot has an average rating of “Moderate Buy” and a consensus price target of $311.00.

HubSpot Price Performance

The stock’s 50-day moving average is $220.74 and its two-hundred day moving average is $287.72. The stock has a market cap of $11.43 billion, a P/E ratio of 116.86, a price-to-earnings-growth ratio of 2.87 and a beta of 1.21.

HubSpot (NYSE:HUBS) last issued its earnings results on Thursday, May 7th. The software maker reported $2.72 earnings per share for the quarter, topping analysts’ consensus estimates of $2.47 by $0.25. HubSpot had a net margin of 3.04% and a return on equity of 5.66%. The firm had revenue of $881.00 million during the quarter, compared to analyst estimates of $863.32 million. During the same quarter in the prior year, the business earned $1.84 earnings per share. HubSpot’s revenue for the quarter was up 23.4% on a year-over-year basis. HubSpot has set its Q2 2026 guidance at 3.000-3.020 EPS and its FY 2026 guidance at 13.040-13.120 EPS. On average, analysts anticipate that HubSpot, Inc. will post 4.39 EPS for the current fiscal year.

Insider Activity at HubSpot

In related news, insider Erika Ashley Fisher sold 915 shares of the 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 directly owned 16,270 shares of the company’s stock, valued at approximately $3,850,458.20. This represents a 5.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Yamini Rangan acquired 2,750 shares of the stock in a transaction on Tuesday, May 12th. The shares were acquired at an average price of $189.84 per share, with a total value of $522,060.00. Following the transaction, the chief executive officer directly owned 102,982 shares of the company’s stock, valued at $19,550,102.88. The trade was a 2.74% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders purchased 14,063 shares of company stock valued at $2,585,781 and sold 26,207 shares valued at $6,233,049. Corporate insiders own 3.70% of the company’s stock.

Hedge Funds Weigh In On HubSpot

Several institutional investors have recently bought and sold shares of the business. Parallel Advisors LLC lifted its position in HubSpot by 5.1% during the first quarter. Parallel Advisors LLC now owns 5,559 shares of the software maker’s stock valued at $1,357,000 after purchasing an additional 268 shares during the last quarter. Lavelle Capital LP bought a new stake in shares of HubSpot in the 1st quarter valued at approximately $1,559,000. Groupe la Francaise lifted its stake in shares of HubSpot by 52.3% in the 1st quarter. Groupe la Francaise now owns 29,004 shares of the software maker’s stock valued at $7,058,000 after purchasing an additional 9,959 shares during the last quarter. Arete Wealth Advisors LLC bought a new stake in shares of HubSpot in the 1st quarter valued at approximately $3,109,000. Finally, Bull Harbor Capital LLC bought a new stake in shares of HubSpot in the 1st quarter valued at approximately $444,000. Institutional investors own 90.39% of the company’s stock.

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.