HubSpot (NYSE:HUBS) Shares Down 5.8% on Analyst Downgrade

Key Points

• HubSpot's stock price fell 5.8% following a downgrade by Citigroup, which lowered its price target from $700 to $650 but maintained a buy rating.
• Multiple analysts have issued varying target prices, with a consensus target of $726.04 and most ratings being favorable, as evidenced by twenty-seven analysts giving it a buy rating.
• HubSpot recently reported a 19.4% year-over-year revenue increase and earnings per share of $2.19, slightly above the consensus estimate.

HubSpot, Inc. (NYSE:HUBS - Get Free Report) traded down 5.8% during mid-day trading on Monday after Citigroup lowered their price target on the stock from $700.00 to $650.00. Citigroup currently has a buy rating on the stock. HubSpot traded as low as $423.01 and last traded at $423.42. 795,185 shares changed hands during mid-day trading, an increase of 11% from the average session volume of 715,435 shares. The stock had previously closed at $449.72.

Several other research analysts have also issued reports on HUBS. Mizuho reduced their target price on shares of HubSpot from $900.00 to $700.00 and set an "outperform" rating on the stock in a research note on Tuesday, April 15th. Needham & Company LLC reiterated a "buy" rating and issued a $900.00 target price on shares of HubSpot in a report on Friday, May 9th. The Goldman Sachs Group cut their target price on HubSpot from $900.00 to $795.00 and set a "buy" rating on the stock in a report on Friday, May 9th. UBS Group decreased their price objective on HubSpot from $820.00 to $700.00 and set a "buy" rating for the company in a report on Thursday. Finally, Oppenheimer upped their target price on HubSpot from $700.00 to $750.00 and gave the stock an "outperform" rating in a research note on Friday, May 9th. Three research analysts have rated the stock with a hold rating, twenty-seven have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $726.04.

Insider Activity

In related news, CEO Yamini Rangan sold 2,383 shares of the company's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $551.79, for a total value of $1,314,915.57. Following the transaction, the chief executive officer owned 63,918 shares in the company, valued at $35,269,313.22. The trade was a 3.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Kathryn Bueker sold 615 shares of the company's stock in a transaction dated Wednesday, July 2nd. The stock was sold at an average price of $551.79, for a total transaction of $339,350.85. Following the completion of the transaction, the chief financial officer owned 41,086 shares in the company, valued at approximately $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 ninety days, insiders sold 19,998 shares of company stock worth $10,928,616. 4.00% of the stock is owned by company insiders.

Institutional Trading of HubSpot

Large investors have recently made changes to their positions in the stock. Elequin Capital LP purchased a new position in shares of HubSpot in the 4th quarter valued at approximately $27,000. Coppell Advisory Solutions LLC grew its stake in shares of HubSpot by 91.7% during the 4th quarter. Coppell Advisory Solutions LLC now owns 46 shares of the software maker's stock worth $32,000 after purchasing an additional 22 shares during the period. Whittier Trust Co. grew its stake in HubSpot by 136.4% in the 2nd quarter. Whittier Trust Co. now owns 52 shares of the software maker's stock valued at $29,000 after acquiring an additional 30 shares during the period. Colonial Trust Co SC grew its stake in HubSpot by 111.1% in the 4th quarter. Colonial Trust Co SC now owns 57 shares of the software maker's stock valued at $40,000 after acquiring an additional 30 shares during the period. Finally, Hilltop National Bank acquired a new stake in HubSpot in the 2nd quarter valued at $32,000. 90.39% of the stock is owned by hedge funds and other institutional investors.

HubSpot Stock Performance

The business's 50 day moving average is $547.87 and its 200-day moving average is $611.65. The stock has a market cap of $22.30 billion, a price-to-earnings ratio of -1,848.52, a PEG ratio of 15.20 and a beta of 1.66.

HubSpot (NYSE:HUBS - Get Free Report) last released its earnings results on Wednesday, August 6th. The software maker reported $2.19 earnings per share for the quarter, beating the consensus estimate of $2.12 by $0.07. The company had revenue of $760.87 million during 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 revenue was up 19.4% compared to the same quarter last year. During the same period in the previous year, the company posted $1.94 EPS. Sell-side analysts anticipate that HubSpot, Inc. will post 1.01 EPS for the current fiscal 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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