HubSpot (NYSE:HUBS) Shares Down 6% - Here's Why

Key Points

• HubSpot shares fell 6% to $269.54 on Tuesday, with mid-day volume (~619,895 shares) down about 66% from average and the stock trading below its 50‑day ($296.31) and 200‑day ($387.87) moving averages; market cap is roughly $14.2B.
• Analysts maintain a consensus rating of Moderate Buy with a consensus target of $454.20, though individual price targets and actions vary widely (ranging from about $280 to $650).
• HubSpot beat estimates last quarter (EPS $3.09 vs. $2.99; revenue $846.8M vs. $830.7M, +20.4% YoY) but trades at a very high P/E (~309) and insiders have sold roughly 26,691 shares (~$8.14M) in the past three months.

HubSpot, Inc. (NYSE:HUBS - Get Free Report)'s stock price dropped 6% during trading on Tuesday . The stock traded as low as $264.09 and last traded at $269.54. Approximately 619,895 shares traded hands during mid-day trading, a decline of 66% from the average daily volume of 1,836,109 shares. The stock had previously closed at $286.84.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the company. Morgan Stanley restated an "overweight" rating on shares of HubSpot in a research report on Thursday, February 12th. Stifel Nicolaus reduced their price objective on HubSpot from $550.00 to $500.00 and set a "buy" rating for the company in a research report on Friday, January 23rd. Cantor Fitzgerald increased their price objective on HubSpot from $280.00 to $325.00 and gave the company an "overweight" rating in a research report on Tuesday, March 3rd. Weiss Ratings reissued a "sell (e+)" rating on shares of HubSpot in a report on Friday, January 9th. Finally, Argus dropped their target price on shares of HubSpot from $650.00 to $525.00 and set a "buy" rating for the company in a report on Thursday, November 20th. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, HubSpot currently has an average rating of "Moderate Buy" and a consensus target price of $454.20.

HubSpot Stock Performance

The company has a market capitalization of $14.20 billion, a P/E ratio of 309.42, a PEG ratio of 4.42 and a beta of 1.40. The company's fifty day simple moving average is $296.31 and its 200-day simple moving average is $387.87.

HubSpot (NYSE:HUBS - Get Free Report) last released its quarterly earnings results on Wednesday, February 11th. The software maker reported $3.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.99 by $0.10. HubSpot had a net margin of 1.47% and a return on equity of 3.64%. The business had revenue of $846.75 million for the quarter, compared to analyst estimates of $830.65 million. During the same period in the previous year, the company earned $2.32 earnings per share. The business's revenue for the quarter was up 20.4% on a year-over-year basis. On average, sell-side analysts predict that HubSpot, Inc. will post 1.01 EPS for the current year.

Insider Activity at HubSpot

In related news, insider Erika Ashley Fisher sold 841 shares of the firm's stock in a transaction dated Wednesday, February 4th. The shares were sold at an average price of $238.01, for a total value of $200,166.41. Following the transaction, the insider directly owned 10,119 shares of the company's stock, valued at approximately $2,408,423.19. This trade represents a 7.67% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Brian Halligan sold 8,261 shares of the company's stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $253.00, for a total transaction of $2,090,033.00. Following the sale, the director directly owned 481,168 shares of the company's stock, valued at $121,735,504. The trade was a 1.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 26,691 shares of company stock worth $8,136,702. 4.00% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On HubSpot

Institutional investors and hedge funds have recently bought and sold shares of the stock. Strategic Advocates LLC acquired a new stake in shares of HubSpot during the third quarter worth about $25,000. Turning Point Benefit Group Inc. purchased a new stake in shares of HubSpot in the third quarter valued at approximately $25,000. Goodman Advisory Group LLC acquired a new position in shares of HubSpot during the 2nd quarter worth $27,000. Exane Asset Management acquired a new position in HubSpot during the third quarter worth about $30,000. Finally, Rakuten Securities Inc. increased its stake in HubSpot by 783.3% in the 2nd 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. 90.39% of the stock is owned by hedge funds and other institutional investors.

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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