HubSpot (NYSE:HUBS) Shares Down 4.6% After Analyst Downgrade

HubSpot, Inc. (NYSE:HUBS) traded down 4.6% during trading on Tuesday after Wells Fargo & Company downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $221.09 and last traded at $220.5930. Approximately 506,359 shares traded hands during trading, a decline of 71% from the average daily volume of 1,765,338 shares. The stock had previously closed at $231.21.

Other analysts also recently issued reports about the stock. Citigroup downgraded shares of HubSpot from a “buy” rating to a “neutral” rating and lowered their price target for the stock from $321.00 to $230.00 in a report on Friday, May 8th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of HubSpot in a report on Wednesday, June 24th. BTIG Research reiterated a “buy” rating and issued a $300.00 price objective on shares of HubSpot in a research report on Tuesday, April 21st. The Goldman Sachs Group reissued a “buy” rating and set a $382.00 target price on shares of HubSpot in a research note on Friday, May 8th. Finally, Morgan Stanley dropped their target price on HubSpot from $405.00 to $350.00 and set an “overweight” rating on the stock in a research report on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $308.32.

Insider Transactions at HubSpot

In related news, insider Erika Ashley Fisher sold 915 shares of the stock in a transaction on Monday, May 4th. The stock was sold at an average price of $236.66, for a total value 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 firm’s stock in a transaction on Tuesday, May 12th. The stock was purchased at an average price of $189.84 per share, for a total transaction of $522,060.00. Following the acquisition, the chief executive officer directly owned 102,982 shares in the company, valued at $19,550,102.88. This represents a 2.74% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders acquired 14,063 shares of company stock valued at $2,585,781 and sold 17,915 shares valued at $3,654,114. Insiders own 3.70% of the company’s stock.

Institutional Investors Weigh In On HubSpot

A number of hedge funds have recently modified their holdings of HUBS. Geode Capital Management LLC increased its stake in HubSpot by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 971,712 shares of the software maker’s stock worth $388,917,000 after purchasing an additional 14,159 shares during the period. OFI Invest Asset Management boosted its stake in shares of HubSpot by 130.2% in the fourth quarter. OFI Invest Asset Management now owns 99,622 shares of the software maker’s stock valued at $39,978,000 after purchasing an additional 56,348 shares during the period. Slow Capital Inc. boosted its stake in shares of HubSpot by 35.9% in the fourth quarter. Slow Capital Inc. now owns 18,615 shares of the software maker’s stock valued at $7,470,000 after purchasing an additional 4,913 shares during the period. Havemeyer Place LP acquired a new position in shares of HubSpot in the fourth quarter valued at approximately $2,044,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its holdings in shares of HubSpot by 65.9% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 44,583 shares of the software maker’s stock valued at $17,891,000 after purchasing an additional 17,713 shares in the last quarter. 90.39% of the stock is currently owned by institutional investors and hedge funds.

HubSpot Stock Performance

The firm’s 50 day moving average is $199.33 and its two-hundred day moving average is $242.76. The stock has a market capitalization of $11.23 billion, a PE ratio of 115.04, a P/E/G ratio of 2.45 and a beta of 1.22.

HubSpot (NYSE:HUBS) last issued its quarterly earnings results on Thursday, May 7th. The software maker reported $2.72 EPS for the quarter, beating the consensus estimate of $2.47 by $0.25. The company had revenue of $881.00 million during the quarter, compared to analysts’ expectations of $863.32 million. HubSpot had a net margin of 3.04% and a return on equity of 5.66%. The firm’s revenue was up 23.4% compared to the same quarter last year. During the same quarter last year, the company 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. On average, analysts anticipate that HubSpot, Inc. will post 4.39 EPS for the current year.

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.