HubSpot (NYSE:HUBS) Given New $220.00 Price Target at TD Cowen

Key Points

• TD Cowen lowered HubSpot’s price target to $220 from $250 and maintained a “hold” rating, while the analyst consensus remains “Moderate Buy” with a $282.23 target.
• HubSpot reported better-than-expected second-quarter results, with revenue up 19.8% year over year to $911.7 million and EPS of $3.26 versus the $3.02 consensus estimate.
• Shares fell 19.2% to $202.25 after the company issued third-quarter revenue guidance below expectations, prompting several analysts to cut their price targets despite stronger full-year EPS guidance.

HubSpot (NYSE:HUBS - Get Free Report) had its target price reduced by equities research analysts at TD Cowen from $250.00 to $220.00 in a note issued to investors on Thursday,Benzinga reports. The firm currently has a "hold" rating on the software maker's stock. TD Cowen's price objective indicates a potential upside of 8.78% from the stock's current price.

Other analysts have also issued reports about the stock. Wolfe Research lowered shares of HubSpot from an "outperform" rating to a "peer perform" rating in a research note on Thursday. Cantor Fitzgerald reaffirmed a "neutral" rating and set a $200.00 target price on shares of HubSpot in a research report on Thursday. Mizuho decreased their target price on shares of HubSpot from $300.00 to $260.00 and set an "outperform" rating for the company in a report on Friday, May 8th. BTIG Research lowered their target price on HubSpot from $300.00 to $250.00 and set a "buy" rating on the stock in a research note on Thursday. Finally, Royal Bank Of Canada decreased their target price on shares of HubSpot from $350.00 to $300.00 and set an "outperform" rating for the company in a research note on Thursday. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, HubSpot currently has an average rating of "Moderate Buy" and a consensus target price of $282.23.

HubSpot Stock Down 19.2%

Shares of HubSpot stock traded down $47.97 during trading hours on Thursday, reaching $202.25. 7,307,489 shares of the company's stock were exchanged, compared to its average volume of 1,815,124. The business has a fifty day moving average of $206.87 and a two-hundred day moving average of $230.28. The company has a market capitalization of $10.36 billion, a P/E ratio of 104.39, a price-to-earnings-growth ratio of 2.72 and a beta of 1.19. HubSpot has a 1 year low of $169.63 and a 1 year high of $525.51.

HubSpot (NYSE:HUBS - Get Free Report) last posted its earnings results on Wednesday, August 5th. The software maker reported $3.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.02 by $0.24. HubSpot had a return on equity of 5.66% and a net margin of 3.04%.The company had revenue of $911.74 million during the quarter, compared to analysts' expectations of $898.31 million. During the same quarter last year, the firm earned $2.19 earnings per share. The firm's quarterly revenue was up 19.8% compared to the same quarter last year. HubSpot has set its FY 2026 guidance at 13.230-13.310 EPS and its Q3 2026 guidance at 3.250-3.270 EPS. As a group, research analysts predict that HubSpot will post 4.39 EPS for the current year.

Insider Transactions at HubSpot

In related news, Director Lorrie M. Norrington acquired 1,313 shares of the firm's stock in a transaction that occurred on Monday, May 11th. The stock was acquired at an average cost of $190.42 per share, for a total transaction of $250,021.46. Following the completion of the acquisition, the director directly owned 2,838 shares of the company's stock, valued at approximately $540,411.96. This trade represents a 86.10% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, CTO Dharmesh Shah purchased 10,000 shares of the firm's stock in a transaction on Tuesday, May 12th. The shares were acquired at an average price of $181.37 per share, with a total value of $1,813,700.00. Following the completion of the acquisition, the chief technology officer owned 1,295,400 shares in the company, valued at approximately $234,946,698. This trade represents a 0.78% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders bought 14,063 shares of company stock valued at $2,585,781 and sold 25,500 shares valued at $5,316,835. 3.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of HUBS. Price T Rowe Associates Inc. MD lifted its holdings in shares of HubSpot by 36.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,581,922 shares of the software maker's stock worth $1,838,727,000 after buying an additional 1,224,424 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position in HubSpot by 352.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 903,559 shares of the software maker's stock valued at $220,559,000 after purchasing an additional 703,706 shares during the period. Capital World Investors acquired a new position in shares of HubSpot in the 4th quarter valued at about $259,930,000. AQR Capital Management LLC increased its holdings in shares of HubSpot by 117.6% during the 4th quarter. AQR Capital Management LLC now owns 1,188,981 shares of the software maker's stock valued at $477,138,000 after purchasing an additional 642,545 shares in the last quarter. Finally, Pictet Asset Management Holding SA grew its position in HubSpot by 32.7% during the fourth quarter. Pictet Asset Management Holding SA now owns 1,935,587 shares of the software maker's stock valued at $776,714,000 after buying an additional 476,740 shares during the period. 90.39% of the stock is currently owned by institutional investors.

Key Stories Impacting HubSpot

Here are the key news stories impacting HubSpot this week:

• Positive Sentiment: HubSpot reported second-quarter revenue of $911.7 million, up approximately 20% year over year, while adjusted EPS of $3.26 exceeded the $3.02 analyst consensus. Customer gains, subscription growth and demand for AI-powered CRM tools supported the results. HubSpot Reports Q2 2026 Results
• Positive Sentiment: Management raised confidence in profitability, issuing full-year 2026 EPS guidance of $13.23-$13.31, above the $11.37 consensus, and projecting 2% to 3% non-GAAP operating-margin expansion in 2027. HubSpot Margin Expansion Outlook
• Neutral Sentiment: HubSpot is expanding AI product trials and lowering entry prices to accelerate adoption. The strategy could broaden its addressable market, but management acknowledged that customers are taking longer to approve purchases and scrutinizing budgets more closely. Q2 Earnings Call Highlights
• Negative Sentiment: Third-quarter revenue guidance of $924 million-$925 million fell well below the $941.2 million consensus, signaling a slower near-term growth outlook despite EPS guidance above estimates. This cautious outlook was the primary catalyst for the selloff. HubSpot Guidance Reaction
• Negative Sentiment: Analysts cut price targets following the results: Stifel reduced its target to $200 from $275, while BTIG lowered its target to $250 from $300. Although BTIG retained a buy rating and KeyCorp maintained an overweight rating, the reductions reflect greater concern about growth and valuation.
• Negative Sentiment: Block & Leviton announced an investigation into possible securities-law violations after the sharp decline. The announcement is an investor solicitation and does not establish wrongdoing, but it adds reputational and legal uncertainty. HubSpot Investigation

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.

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