HubSpot (NYSE:HUBS) Shares Down 4.6% on Analyst Downgrade

Key Points

• HubSpot shares fell 4.6% after Wells Fargo & Company downgraded the stock from strong-buy to hold. The stock traded as low as $221.09 during the session.
• Despite the downgrade, analysts remain generally positive overall: HubSpot has a Moderate Buy consensus rating and an average price target of $308.32, though individual targets vary widely.
• Recent company data showed better-than-expected quarterly results, with EPS of $2.72 versus $2.47 expected and revenue of $881 million, up 23.4% year over year. The article also noted insider selling, including Director Brian Halligan selling 8,500 shares.

HubSpot, Inc. (NYSE:HUBS - Get Free Report)'s share price traded down 4.6% during trading on Tuesday after Wells Fargo & Company downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $221.09 and last traded at $220.5930. 506,359 shares were traded during mid-day trading, a decline of 71% from the average daily volume of 1,765,338 shares. The stock had previously closed at $231.21.

HUBS has been the topic of a number of other research reports. Sanford C. Bernstein set a $381.00 price objective on shares of HubSpot in a research report on Friday, May 8th. Barclays decreased their target price on shares of HubSpot from $300.00 to $270.00 and set an "overweight" rating for the company in a research report on Monday, May 11th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $250.00 price target on shares of HubSpot in a report on Friday, May 8th. Stifel Nicolaus set a $275.00 price target on HubSpot in a research report on Friday, May 8th. Finally, Evercore set a $225.00 price target on HubSpot in a research report on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $308.32.

Insider Buying and Selling at HubSpot

In other news, Director Brian Halligan sold 8,500 shares of the business's stock in a transaction 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 of the company's stock, valued at $17,243,270. The trade was a 8.33% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Erika Ashley Fisher sold 915 shares of the company's stock in a transaction on Monday, May 4th. The shares were sold at an average price of $236.66, for a total value of $216,543.90. Following the completion of the transaction, the insider directly owned 16,270 shares in the company, valued at approximately $3,850,458.20. The trade was a 5.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders acquired 14,063 shares of company stock valued at $2,585,781 and sold 17,915 shares valued at $3,654,114. 3.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Turning Point Benefit Group Inc. purchased a new stake in HubSpot in the third quarter valued at approximately $25,000. Rakuten Securities Inc. raised its position in HubSpot by 783.3% during the 2nd quarter. Rakuten Securities Inc. now owns 53 shares of the software maker's stock worth $30,000 after buying an additional 47 shares during the last quarter. Cary Street Partners Investment Advisory LLC acquired a new stake in HubSpot during the 4th quarter valued at approximately $33,000. Osterweis Capital Management Inc. acquired a new stake in HubSpot during the 2nd quarter valued at approximately $34,000. Finally, Larson Financial Group LLC boosted its holdings in shares of HubSpot by 378.9% in the 4th quarter. Larson Financial Group LLC now owns 91 shares of the software maker's stock valued at $37,000 after acquiring an additional 72 shares during the last quarter. 90.39% of the stock is owned by institutional investors and hedge funds.

HubSpot Trading Down 5.2%

The firm has a market capitalization of $11.23 billion, a PE ratio of 115.04, a P/E/G ratio of 2.45 and a beta of 1.22. The firm's fifty day moving average price is $199.33 and its 200 day moving average price is $242.76.

HubSpot (NYSE:HUBS - Get Free Report) last posted its earnings results on Thursday, May 7th. The software maker reported $2.72 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.47 by $0.25. The company had revenue of $881.00 million during the quarter, compared to the consensus estimate of $863.32 million. HubSpot had a net margin of 3.04% and a return on equity of 5.66%. The firm's quarterly revenue was up 23.4% on a year-over-year basis. During the same period in the previous year, the firm posted $1.84 earnings per share. HubSpot has set its Q2 2026 guidance at 3.000-3.020 EPS and its FY 2026 guidance at 13.040-13.120 EPS. On average, analysts predict that HubSpot, Inc. will post 4.39 earnings per share for the current 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.