HubSpot (NYSE:HUBS) Shares Down 5.8% - Here's Why

Key Points

• HubSpot's stock price dropped by 5.8% to $489.53, significantly below its previous close of $519.88, with trading volume down by 85% from the average.
• Analysts have mixed ratings on HubSpot, with price targets ranging from $675 to $775 and an overall consensus rating of "Moderate Buy," reflecting varied expectations on its stock performance.
• On the earnings front, HubSpot reported a 19.4% year-over-year revenue increase and beat EPS estimates, signaling ongoing growth despite the recent stock decline.

HubSpot, Inc. (NYSE:HUBS - Get Free Report) fell 5.8% during trading on Tuesday . The company traded as low as $502.29 and last traded at $489.53. 110,420 shares traded hands during mid-day trading, a decline of 85% from the average session volume of 731,776 shares. The stock had previously closed at $519.88.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on HUBS. Canaccord Genuity Group cut their price objective on HubSpot from $765.00 to $700.00 and set a "buy" rating for the company in a research report on Thursday, August 7th. Truist Financial cut their price objective on HubSpot from $720.00 to $675.00 and set a "buy" rating for the company in a research report on Thursday, August 7th. Sanford C. Bernstein raised HubSpot from a "market perform" rating to an "outperform" rating and set a $606.00 price objective on the stock in a report on Wednesday, September 3rd. Cantor Fitzgerald assumed coverage on HubSpot in a report on Tuesday, June 3rd. They set an "overweight" rating and a $775.00 price objective on the stock. Finally, Stifel Nicolaus decreased their price objective on HubSpot from $750.00 to $700.00 and set a "buy" rating on the stock in a report on Monday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $722.93.

HubSpot Trading Down 8.6%

The company has a 50-day simple moving average of $491.63 and a 200 day simple moving average of $548.54. The company has a market cap of $25.03 billion, a P/E ratio of -2,065.48, a P/E/G ratio of 17.86 and a beta of 1.58.

HubSpot (NYSE:HUBS - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The software maker reported $2.19 EPS for the quarter, beating the consensus estimate of $2.12 by $0.07. The company had revenue of $760.87 million for the quarter, compared to the consensus estimate of $739.94 million. HubSpot had a positive return on equity of 1.74% and a negative net margin of 0.42%.HubSpot's quarterly revenue was up 19.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.94 EPS. On average, equities analysts forecast that HubSpot, Inc. will post 1.01 EPS for the current fiscal year.

Insider Transactions at HubSpot

In other news, CTO Dharmesh Shah sold 17,253 shares of the stock in a transaction on Monday, September 8th. The stock was sold at an average price of $500.66, for a total transaction of $8,637,886.98. Following the transaction, the chief technology officer owned 1,275,805 shares of the company's stock, valued at approximately $638,744,531.30. This represents a 1.33% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 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 transaction, the chief financial officer directly owned 41,086 shares in the company, 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. Insiders sold a total of 51,094 shares of company stock worth $25,716,404 over the last quarter. 4.00% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On HubSpot

Institutional investors have recently added to or reduced their stakes in the stock. Goodman Advisory Group LLC bought a new stake in HubSpot during the second quarter valued at about $27,000. Whittier Trust Co. boosted its position in HubSpot by 136.4% during 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. Rakuten Securities Inc. boosted its position in HubSpot by 783.3% during the second quarter. Rakuten Securities Inc. now owns 53 shares of the software maker's stock valued at $30,000 after purchasing an additional 47 shares in the last quarter. Hilltop National Bank purchased a new stake in HubSpot in the second quarter valued at about $32,000. Finally, Cullen Frost Bankers Inc. raised its stake in HubSpot by 130.8% in the first quarter. Cullen Frost Bankers Inc. now owns 60 shares of the software maker's stock valued at $34,000 after buying an additional 34 shares during the last quarter. Institutional investors own 90.39% of the company's stock.

HubSpot Company Profile

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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