HubSpot (NYSE:HUBS) Shares Gap Down - Time to Sell?

Key Points

• HubSpot shares gapped down before trading on Wednesday, opening at $200 after closing at $208.19 and last trading around $202.86, down about 1.5%.
• Several analysts cut price targets recently, including Citigroup lowering its rating to neutral and trimming its target to $230, while the consensus rating remains Moderate Buy with a $311 target.
• The company beat earnings and revenue estimates in its latest quarter, reporting $2.72 EPS on $881 million in revenue, but the stock still trades well below its 50-day and 200-day moving averages.

HubSpot, Inc. (NYSE:HUBS - Get Free Report)'s share price gapped down prior to trading on Wednesday . The stock had previously closed at $208.19, but opened at $200.00. HubSpot shares last traded at $202.8550, with a volume of 151,350 shares trading hands.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the company. BTIG Research reissued a "buy" rating and issued a $300.00 price target on shares of HubSpot in a research note on Tuesday, April 21st. Citigroup cut HubSpot from a "buy" rating to a "neutral" rating and dropped their price target for the stock from $321.00 to $230.00 in a research note on Friday, May 8th. Oppenheimer dropped their price target on HubSpot from $550.00 to $350.00 and set an "outperform" rating on the stock in a research note on Wednesday, February 4th. Wells Fargo & Company dropped their price target on HubSpot from $350.00 to $300.00 and set an "overweight" rating on the stock in a research note on Friday, May 8th. Finally, BMO Capital Markets dropped their price target on HubSpot from $285.00 to $230.00 and set an "outperform" rating on the stock in a research note on Friday, May 8th. Twenty-two analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, HubSpot presently has a consensus rating of "Moderate Buy" and a consensus target price of $311.00.

HubSpot Trading Down 1.5%

The company has a market cap of $10.50 billion, a price-to-earnings ratio of 107.42, a price-to-earnings-growth ratio of 2.64 and a beta of 1.23. The firm's fifty day moving average price is $230.85 and its 200-day moving average price is $302.41.

HubSpot (NYSE:HUBS - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The software maker reported $2.72 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.47 by $0.25. HubSpot had a net margin of 3.04% and a return on equity of 5.66%. The company had revenue of $881.00 million during the quarter, compared to analyst estimates of $863.32 million. During the same quarter in the previous year, the business earned $1.84 EPS. The firm's revenue was up 23.4% on a year-over-year basis. HubSpot has set its Q2 2026 guidance at 3.000-3.020 EPS and its FY 2026 guidance at 13.040-13.120 EPS. As a group, research analysts anticipate that HubSpot, Inc. will post 3.79 EPS for the current year.

Insider Buying and Selling

In other news, CTO Dharmesh Shah purchased 10,000 shares of the firm's stock in a transaction dated Tuesday, May 12th. The stock was bought at an average price of $181.37 per share, with a total value of $1,813,700.00. Following the acquisition, the chief technology officer directly owned 1,295,400 shares of the company's stock, valued at approximately $234,946,698. This represents a 0.78% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Erika Ashley Fisher sold 915 shares of the stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $236.66, for a total value of $216,543.90. Following the sale, the insider directly owned 16,270 shares of the company's stock, valued at approximately $3,850,458.20. The trade was a 5.32% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have acquired 14,063 shares of company stock worth $2,585,781 and have sold 17,707 shares worth $4,363,049. Corporate insiders own 4.00% of the company's stock.

Institutional Trading of HubSpot

A number of large investors have recently bought and sold shares of the business. Fifth Third Bancorp increased its stake in HubSpot by 2.5% during the 3rd quarter. Fifth Third Bancorp now owns 1,076 shares of the software maker's stock worth $503,000 after purchasing an additional 26 shares in the last quarter. GPS Wealth Strategies Group LLC raised its stake in shares of HubSpot by 5.7% in the 3rd quarter. GPS Wealth Strategies Group LLC now owns 522 shares of the software maker's stock valued at $244,000 after purchasing an additional 28 shares during the period. Bessemer Group Inc. raised its stake in shares of HubSpot by 9.1% in the 3rd quarter. Bessemer Group Inc. now owns 335 shares of the software maker's stock valued at $156,000 after purchasing an additional 28 shares during the period. National Bank of Canada FI raised its stake in shares of HubSpot by 8.6% in the 3rd quarter. National Bank of Canada FI now owns 379 shares of the software maker's stock valued at $177,000 after purchasing an additional 30 shares during the period. Finally, Westside Investment Management Inc. raised its stake in shares of HubSpot by 80.5% in the 3rd quarter. Westside Investment Management Inc. now owns 74 shares of the software maker's stock valued at $33,000 after purchasing an additional 33 shares during the period. 90.39% of the stock is owned by institutional investors.

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.

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