HubSpot (NYSE:HUBS) Sets New 12-Month Low - Here's Why

Key Points

• HubSpot hit a new 52-week low, trading as low as $199 and last at $201.72 on volume of 919,335 shares (previous close $217.98).
• Several analysts sharply cut price targets (e.g., Needham $700→$300, Oppenheimer $550→$350, Jefferies $560→$325), yet MarketBeat’s consensus remains a Moderate Buy with an average target of $429.90.
• The company beat the quarter (EPS $3.09 vs. $2.99; revenue $846.8M vs. $830.7M, +20.4% YoY) but still trades at a high valuation (PE ~233.9) amid notable insider selling (~26,691 shares, ~$7.25M) and ~90% institutional ownership.

HubSpot, Inc. (NYSE:HUBS - Get Free Report)'s share price reached a new 52-week low during trading on Thursday . The company traded as low as $199.00 and last traded at $201.7240, with a volume of 919335 shares changing hands. The stock had previously closed at $217.98.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the company. Needham & Company LLC reduced their target price on HubSpot from $700.00 to $300.00 and set a "buy" rating for the company in a report on Thursday, February 12th. Oppenheimer reduced their target price on HubSpot from $550.00 to $350.00 and set an "outperform" rating for the company in a report on Wednesday, February 4th. Jefferies Financial Group reduced their target price on HubSpot from $560.00 to $325.00 and set a "buy" rating for the company in a report on Thursday, February 12th. Sanford C. Bernstein reissued an "outperform" rating on shares of HubSpot in a report on Thursday, February 12th. Finally, KeyCorp dropped their price target on HubSpot from $400.00 to $340.00 and set an "overweight" rating for the company in a research report on Thursday, February 12th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, HubSpot has a consensus rating of "Moderate Buy" and an average price target of $429.90.

HubSpot Price Performance

The firm has a market cap of $10.72 billion, a PE ratio of 233.92, a PEG ratio of 3.39 and a beta of 1.44. The business has a 50-day moving average price of $250.76 and a two-hundred day moving average price of $351.85.

HubSpot (NYSE:HUBS - Get Free Report) last announced its quarterly earnings results on Wednesday, February 11th. The software maker reported $3.09 earnings per share for the quarter, beating analysts' consensus estimates of $2.99 by $0.10. The business had revenue of $846.75 million during the quarter, compared to analysts' expectations of $830.65 million. HubSpot had a return on equity of 3.64% and a net margin of 1.47%.The business's revenue for the quarter was up 20.4% on a year-over-year basis. During the same quarter last year, the business posted $2.32 earnings per share. Equities analysts expect that HubSpot, Inc. will post 1.01 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Brian Halligan sold 8,500 shares of the stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $262.75, for a total transaction of $2,233,375.00. Following the sale, the director owned 370,558 shares of the company's stock, valued at $97,364,114.50. This trade represents a 2.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Erika Ashley Fisher sold 841 shares of the stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $238.01, for a total value of $200,166.41. Following the sale, the insider directly owned 10,119 shares in the company, valued at approximately $2,408,423.19. The trade was a 7.67% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 26,691 shares of company stock worth $7,250,662. Corporate insiders own 4.00% of the company's stock.

Hedge Funds Weigh In On HubSpot

Large investors have recently added to or reduced their stakes in the business. Goodman Advisory Group LLC purchased a new position in HubSpot during the second quarter worth about $27,000. Rakuten Securities Inc. increased its stake in HubSpot by 783.3% during the second quarter. Rakuten Securities Inc. now owns 53 shares of the software maker's stock worth $30,000 after acquiring an additional 47 shares during the last quarter. Strategic Advocates LLC acquired a new stake in HubSpot during the third quarter worth about $25,000. Turning Point Benefit Group Inc. acquired a new stake in HubSpot during the third quarter worth about $25,000. Finally, Osterweis Capital Management Inc. acquired a new stake in HubSpot during the second quarter worth about $34,000. 90.39% of the stock is currently owned by hedge funds and other institutional investors.

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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