HubSpot (NYSE:HUBS) Shares Down 5.7% - Here's Why

Key Points

• Shares tumbled 5.7% to about $378.38 on Friday, with only 76,301 shares trading—an 89% drop from the average session volume.
• Wall Street firms trimmed price targets (e.g., Oppenheimer to $550, Barclays to $575, Piper Sandler to $590) but the stock retains a consensus rating of "Moderate Buy" with a consensus target of $613.45.
• HubSpot beat quarterly estimates, reporting $2.66 EPS vs. $2.58 expected and $809.5M in revenue (+20.9% year‑over‑year), signaling continued top-line growth.

HubSpot, Inc. (NYSE:HUBS - Get Free Report)'s share price traded down 5.7% during trading on Friday . The stock traded as low as $380.50 and last traded at $378.38. 76,301 shares traded hands during trading, a decline of 89% from the average session volume of 671,234 shares. The stock had previously closed at $401.30.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. Oppenheimer reduced their target price on HubSpot from $750.00 to $550.00 and set an "outperform" rating for the company in a report on Thursday, November 6th. Barclays lowered their target price on HubSpot from $675.00 to $575.00 and set an "overweight" rating on the stock in a research note on Thursday, November 6th. Weiss Ratings restated a "sell (e+)" rating on shares of HubSpot in a report on Tuesday, October 14th. Piper Sandler decreased their price objective on HubSpot from $675.00 to $590.00 and set an "overweight" rating for the company in a report on Thursday, November 6th. Finally, Needham & Company LLC lowered their target price on shares of HubSpot from $900.00 to $700.00 and set a "buy" rating on the stock in a report on Thursday, November 6th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $613.45.

HubSpot Trading Down 5.2%

The stock has a 50 day moving average price of $399.13 and a 200 day moving average price of $464.80. The company has a market cap of $19.93 billion, a PE ratio of -4,760.73, a PEG ratio of 13.61 and a beta of 1.46.

HubSpot (NYSE:HUBS - Get Free Report) last posted its quarterly earnings results on Thursday, November 6th. The software maker reported $2.66 earnings per share for the quarter, topping the consensus estimate of $2.58 by $0.08. HubSpot had a positive return on equity of 1.21% and a negative net margin of 0.12%.The firm had revenue of $809.52 million during the quarter, compared to analysts' expectations of $786.80 million. During the same quarter in the previous year, the business earned $2.18 earnings per share. The company's revenue was up 20.9% on a year-over-year basis. Equities analysts expect that HubSpot, Inc. will post 1.01 EPS for the current fiscal year.

Insider Activity

In other news, CFO Kathryn Bueker sold 615 shares of the company's stock in a transaction dated Monday, October 6th. The stock was sold at an average price of $500.00, for a total value of $307,500.00. Following the completion of the transaction, the chief financial officer owned 38,794 shares of the company's stock, valued at $19,397,000. This represents a 1.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Brian Halligan sold 8,500 shares of the business's stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $366.99, for a total value of $3,119,415.00. Following the completion of the transaction, the director directly owned 496,308 shares in the company, valued at approximately $182,140,072.92. This represents a 1.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 28,502 shares of company stock worth $11,559,565 over the last ninety days. Corporate insiders own 4.00% of the company's stock.

Institutional Investors Weigh In On HubSpot

Several institutional investors have recently made changes to their positions in the company. Vident Advisory LLC lifted its stake in HubSpot by 54.2% in the first quarter. Vident Advisory LLC now owns 1,707 shares of the software maker's stock worth $975,000 after purchasing an additional 600 shares during the last quarter. Royal Bank of Canada boosted its holdings in HubSpot by 36.6% during the 1st quarter. Royal Bank of Canada now owns 186,213 shares of the software maker's stock valued at $106,382,000 after acquiring an additional 49,917 shares during the period. Focus Partners Advisor Solutions LLC bought a new position in HubSpot in the 1st quarter valued at $780,000. Alyeska Investment Group L.P. purchased a new stake in HubSpot in the first quarter worth $64,928,000. Finally, AQR Capital Management LLC lifted its position in shares of HubSpot by 64.2% during the first quarter. AQR Capital Management LLC now owns 341,957 shares of the software maker's stock worth $191,431,000 after purchasing an additional 133,720 shares during the last quarter. Institutional investors own 90.39% of the company's stock.

About HubSpot

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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