HubSpot (NYSE:HUBS) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• HubSpot has been downgraded from a "buy" to a "hold" rating by Wall Street Zen, impacting investor sentiment.
• Despite the downgrade, analysts have varying opinions, with some maintaining "overweight" ratings and higher price targets, signaling mixed investor outlooks.
• HubSpot reported a 19.4% year-over-year revenue increase with quarterly earnings exceeding estimates, suggesting solid financial performance despite the rating change.

HubSpot (NYSE:HUBS - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Friday.

HUBS has been the topic of several other reports. Cantor Fitzgerald restated an "overweight" rating and set a $775.00 price objective on shares of HubSpot in a research note on Friday. Wells Fargo & Company began coverage on shares of HubSpot in a research report on Tuesday. They issued an "overweight" rating and a $685.00 price target on the stock. Sanford C. Bernstein raised shares of HubSpot from a "market perform" rating to an "outperform" rating and set a $606.00 price target for the company in a report on Wednesday, September 3rd. Citigroup lowered their price objective on shares of HubSpot from $700.00 to $650.00 and set a "buy" rating for the company in a research report on Friday, August 8th. Finally, Barclays cut their target price on shares of HubSpot from $745.00 to $675.00 and set an "overweight" rating on the stock in a report on Monday, July 21st. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, HubSpot currently has an average rating of "Moderate Buy" and an average price target of $723.11.

HubSpot Stock Performance

Shares of HubSpot stock traded up $7.77 during trading on Friday, reaching $452.93. The company had a trading volume of 895,846 shares, compared to its average volume of 918,150. HubSpot has a fifty-two week low of $418.34 and a fifty-two week high of $881.13. The firm's fifty day moving average is $483.26 and its 200-day moving average is $545.08. The company has a market cap of $23.87 billion, a price-to-earnings ratio of -1,969.27, a price-to-earnings-growth ratio of 15.35 and a beta of 1.58.

HubSpot (NYSE:HUBS - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The software maker reported $2.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.12 by $0.07. HubSpot had a positive return on equity of 1.74% and a negative net margin of 0.42%.The firm had revenue of $760.87 million for the quarter, compared to analysts' expectations of $739.94 million. During the same quarter in the prior year, the firm posted $1.94 earnings per share. HubSpot's revenue for the quarter was up 19.4% compared to the same quarter last year. On average, research analysts anticipate that HubSpot will post 1.01 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Brian Halligan sold 8,500 shares of the firm's stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $449.84, for a total transaction of $3,823,640.00. Following the transaction, the director directly owned 522,435 shares of the company's stock, valued at approximately $235,012,160.40. This trade represents a 1.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CTO Dharmesh Shah sold 17,253 shares of the company's stock in a transaction dated Monday, September 8th. The stock was sold at an average price of $500.66, for a total transaction of $8,637,886.98. Following the completion of the sale, the chief technology officer directly owned 1,275,805 shares of the company's stock, valued at $638,744,531.30. The trade was a 1.33% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 48,096 shares of company stock worth $24,062,137. Insiders own 4.00% of the company's stock.

Hedge Funds Weigh In On HubSpot

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Venturi Wealth Management LLC raised its stake in shares of HubSpot by 1.1% in the 1st quarter. Venturi Wealth Management LLC now owns 1,507 shares of the software maker's stock worth $861,000 after buying an additional 16 shares in the last quarter. WCM Investment Management LLC lifted its holdings in HubSpot by 0.6% in the 1st quarter. WCM Investment Management LLC now owns 2,668 shares of the software maker's stock valued at $1,553,000 after acquiring an additional 17 shares during the last quarter. Yousif Capital Management LLC boosted its position in shares of HubSpot by 3.0% during the 1st quarter. Yousif Capital Management LLC now owns 662 shares of the software maker's stock valued at $378,000 after purchasing an additional 19 shares in the last quarter. Ballentine Partners LLC grew its stake in shares of HubSpot by 3.5% in the 1st quarter. Ballentine Partners LLC now owns 584 shares of the software maker's stock worth $334,000 after purchasing an additional 20 shares during the last quarter. Finally, Apollon Wealth Management LLC raised its holdings in shares of HubSpot by 5.2% in the 1st quarter. Apollon Wealth Management LLC now owns 405 shares of the software maker's stock worth $231,000 after purchasing an additional 20 shares in the last quarter. 90.39% of the stock is owned by institutional investors.

About HubSpot

HubSpot, Inc, together with its subsidiaries, provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company's CRM platform includes Marketing Hub, a toolset for marketing automation and email, social media, SEO, and reporting and analytics; Sales Hub offers email templates and tracking, conversations and live chat, meeting and call scheduling, lead and website visit alerts, lead scoring, sales automation, pipeline management, quoting, forecasting, and reporting; Service Hub, a service software designed to help businesses manage, respond, and connect with customers; and Content Management Systems Hub enables businesses to create new and edit existing web content.

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