HubSpot (NYSE:HUBS) Hits New 52-Week Low on Analyst Downgrade

Key Points

• HubSpot's stock reached a new 52-week low of $457.18 following a downgrade from Truist Financial, which lowered its price target from $720.00 to $675.00 but maintains a buy rating on the stock.
• Recent analyst reports have resulted in mixed ratings, with four analysts suggesting a hold, twenty-six a buy, and one a strong buy, while the average target price is $745.46.
• Director Brian Halligan sold 8,500 shares of HubSpot stock, reflecting a 1.60% decrease in his position, despite insiders owning 4.50% of the company's stock overall.

HubSpot, Inc. (NYSE:HUBS - Get Free Report) hit a new 52-week low during trading on Thursday after Truist Financial lowered their price target on the stock from $720.00 to $675.00. Truist Financial currently has a buy rating on the stock. HubSpot traded as low as $457.18 and last traded at $463.13, with a volume of 947467 shares trading hands. The stock had previously closed at $492.62.

HUBS has been the topic of a number of other reports. Stifel Nicolaus dropped their target price on shares of HubSpot from $750.00 to $700.00 and set a "buy" rating on the stock in a research note on Monday, July 14th. BNP Paribas started coverage on shares of HubSpot in a research report on Tuesday, April 22nd. They set an "outperform" rating and a $700.00 target price for the company. Wall Street Zen downgraded shares of HubSpot from a "buy" rating to a "hold" rating in a research note on Saturday, July 26th. Morgan Stanley raised their price target on shares of HubSpot from $659.00 to $752.00 and gave the company an "overweight" rating in a research report on Friday, May 9th. Finally, Wells Fargo & Company lowered their price target on HubSpot from $700.00 to $675.00 and set an "overweight" rating for the company in a report on Monday, June 9th. Four equities research analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat, HubSpot has an average rating of "Moderate Buy" and an average target price of $745.46.

Insider Activity

In related news, Director Brian Halligan sold 8,500 shares of the stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $543.07, for a total transaction of $4,616,095.00. Following the sale, the director directly owned 522,435 shares of the company's stock, valued at approximately $283,718,775.45. This represents a 1.60% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Kathryn Bueker sold 615 shares of the stock in a transaction on Wednesday, July 2nd. The stock was sold at an average price of $551.79, for a total value of $339,350.85. Following the completion of the sale, the chief financial officer owned 41,086 shares of the company's stock, valued at $22,670,843.94. The trade was a 1.47% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 19,998 shares of company stock valued at $10,928,616. 4.50% of the stock is currently owned by company insiders.

Institutional Trading of HubSpot

A number of hedge funds have recently added to or reduced their stakes in HUBS. Elequin Capital LP acquired a new position in shares of HubSpot in the fourth quarter worth about $27,000. Coppell Advisory Solutions LLC grew its position in HubSpot by 91.7% in the fourth quarter. Coppell Advisory Solutions LLC now owns 46 shares of the software maker's stock valued at $32,000 after acquiring an additional 22 shares during the period. Aster Capital Management DIFC Ltd grew its position in shares of HubSpot by 213.3% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 47 shares of the software maker's stock worth $33,000 after buying an additional 32 shares during the period. Whittier Trust Co. lifted its holdings in shares of HubSpot by 136.4% in the second quarter. Whittier Trust Co. now owns 52 shares of the software maker's stock valued at $29,000 after purchasing an additional 30 shares in the last quarter. Finally, Colonial Trust Co SC lifted its stake in shares of HubSpot by 111.1% during the 4th quarter. Colonial Trust Co SC now owns 57 shares of the software maker's stock worth $40,000 after buying an additional 30 shares during the last quarter. 90.39% of the stock is owned by institutional investors and hedge funds.

HubSpot Price Performance

The firm's 50-day simple moving average is $555.48 and its 200 day simple moving average is $617.78. The firm has a market capitalization of $24.32 billion, a price-to-earnings ratio of -1,024.64, a P/E/G ratio of 17.90 and a beta of 1.66.

HubSpot (NYSE:HUBS - Get Free Report) last posted its earnings results on Wednesday, August 6th. The software maker reported $2.19 EPS for the quarter, topping the consensus estimate of $2.12 by $0.07. HubSpot had a positive return on equity of 0.14% and a negative net margin of 0.85%. The business had revenue of $760.87 million during the quarter, compared to analysts' expectations of $739.94 million. During the same period in the previous year, the business earned $1.94 earnings per share. The firm's revenue was up 19.4% on a year-over-year basis. As a group, research analysts predict that HubSpot, Inc. will post 1.01 earnings per share for the current year.

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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