HubSpot (NYSE:HUBS) Shares Gap Down on Analyst Downgrade

HubSpot, Inc. (NYSE:HUBS) gapped down before the market opened on Monday after Wells Fargo & Company downgraded the stock from a strong-buy rating to a hold rating. The stock had previously closed at $224.26, but opened at $215.68. HubSpot shares last traded at $220.8380, with a volume of 123,375 shares trading hands.

Several other research analysts have also recently weighed in on HUBS. Raymond James Financial restated an “outperform” rating and set a $250.00 target price on shares of HubSpot in a report on Friday, May 8th. KeyCorp cut their price target on HubSpot from $340.00 to $290.00 and set an “overweight” rating for the company in a report on Friday, May 8th. Sanford C. Bernstein set a $381.00 price objective on HubSpot in a research report on Friday, May 8th. Piper Sandler lowered their price objective on HubSpot from $260.00 to $250.00 and set an “overweight” rating on the stock in a research note on Friday, May 8th. Finally, Zacks Research upgraded HubSpot from a “hold” rating to a “strong-buy” rating in a report on Monday, July 13th. 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 issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $308.32.

Insider Buying and Selling

In other news, insider Erika Ashley Fisher sold 915 shares of HubSpot stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $236.66, for a total transaction of $216,543.90. Following the sale, the insider owned 16,270 shares of the company’s stock, valued at approximately $3,850,458.20. The trade was a 5.32% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Brian Halligan sold 8,500 shares of HubSpot stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $184.42, for a total transaction of $1,567,570.00. Following the sale, the director directly owned 93,500 shares in the company, valued at approximately $17,243,270. The trade was a 8.33% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders acquired 14,063 shares of company stock worth $2,585,781 and sold 17,915 shares worth $3,654,114. Company insiders own 3.70% of the company’s stock.

Institutional Investors Weigh In On HubSpot

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Turning Point Benefit Group Inc. purchased a new position in shares of HubSpot during the 3rd quarter worth $25,000. Rakuten Securities Inc. raised its holdings in HubSpot by 783.3% in the 2nd quarter. Rakuten Securities Inc. now owns 53 shares of the software maker’s stock valued at $30,000 after buying an additional 47 shares during the period. Cary Street Partners Investment Advisory LLC purchased a new stake in HubSpot in the 4th quarter valued at about $33,000. Osterweis Capital Management Inc. acquired a new position in HubSpot in the second quarter valued at about $34,000. Finally, Larson Financial Group LLC lifted its position in HubSpot by 378.9% in the fourth quarter. Larson Financial Group LLC now owns 91 shares of the software maker’s stock valued at $37,000 after buying an additional 72 shares during the last quarter. Institutional investors and hedge funds own 90.39% of the company’s stock.

HubSpot Price Performance

The company has a market cap of $11.19 billion, a PE ratio of 114.35, a price-to-earnings-growth ratio of 2.52 and a beta of 1.22. The company’s 50 day simple moving average is $200.10 and its two-hundred day simple moving average is $241.47.

HubSpot (NYSE:HUBS) last announced its quarterly earnings results on Thursday, May 7th. The software maker reported $2.72 earnings per share for the quarter, beating 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 business had revenue of $881.00 million during the quarter, compared to analysts’ expectations of $863.32 million. During the same period last year, the business earned $1.84 earnings per share. The business’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. Sell-side analysts expect that HubSpot, Inc. will post 4.39 EPS for the current fiscal year.

HubSpot Company Profile

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.