HubSpot (NYSE:HUBS) Shares Gap Up - Should You Buy?

Key Points

• HubSpot shares gapped up ahead of Thursday’s trading, opening at $233 after closing at $222.45, and last traded around $229.12.
• Several analysts cut price targets after the latest results, though the stock still holds a Moderate Buy consensus with an average target price of $311.00.
• HubSpot’s recent earnings were solid, with EPS of $2.72 beating estimates and revenue rising 23.4% year over year; the company also saw insider buying from its CEO and a director.

HubSpot, Inc. (NYSE:HUBS - Get Free Report)'s share price gapped up prior to trading on Thursday . The stock had previously closed at $222.45, but opened at $233.00. HubSpot shares last traded at $229.1190, with a volume of 332,168 shares.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. BMO Capital Markets decreased their target price on HubSpot from $285.00 to $230.00 and set an "outperform" rating on the stock in a report on Friday, May 8th. KeyCorp decreased their target price on HubSpot from $340.00 to $290.00 and set an "overweight" rating on the stock in a report on Friday, May 8th. Barclays decreased their target price on HubSpot from $300.00 to $270.00 and set an "overweight" rating on the stock in a report on Monday, May 11th. Piper Sandler decreased their target price on HubSpot from $260.00 to $250.00 and set an "overweight" rating on the stock in a report on Friday, May 8th. Finally, Citigroup cut HubSpot from a "buy" rating to a "neutral" rating and decreased their target price for the stock from $321.00 to $230.00 in a report on Friday, May 8th. Twenty-two investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, HubSpot currently has an average rating of "Moderate Buy" and an average target price of $311.00.

HubSpot Stock Performance

The business's fifty day simple moving average is $219.59 and its 200-day simple moving average is $285.45. The firm has a market capitalization of $11.47 billion, a PE ratio of 116.99, a price-to-earnings-growth ratio of 2.63 and a beta of 1.21.

HubSpot (NYSE:HUBS - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The software maker reported $2.72 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.47 by $0.25. HubSpot had a net margin of 3.04% and a return on equity of 5.66%. The business had revenue of $881.00 million during the quarter, compared to analyst estimates of $863.32 million. During the same period last year, the firm posted $1.84 EPS. The company'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. Sell-side analysts expect that HubSpot, Inc. will post 4.39 earnings per share for the current fiscal year.

Insider Buying and Selling at HubSpot

In related news, CEO Yamini Rangan acquired 2,750 shares of HubSpot stock in a transaction on Tuesday, May 12th. The shares were bought at an average cost of $189.84 per share, with a total value of $522,060.00. Following the completion of the purchase, the chief executive officer directly owned 102,982 shares of the company's stock, valued at $19,550,102.88. The trade was a 2.74% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Lorrie M. Norrington acquired 1,313 shares of HubSpot stock in a transaction on Monday, May 11th. The shares were bought at an average cost of $190.42 per share, for a total transaction of $250,021.46. Following the completion of the purchase, the director directly owned 2,838 shares of the company's stock, valued at $540,411.96. The trade was a 86.10% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have bought 14,063 shares of company stock worth $2,585,781 and have sold 26,207 shares worth $6,233,049. 3.70% of the stock is owned by corporate insiders.

Institutional Trading of HubSpot

A number of institutional investors have recently bought and sold shares of HUBS. Geode Capital Management LLC increased its stake in shares of HubSpot by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 971,712 shares of the software maker's stock valued at $388,917,000 after buying an additional 14,159 shares during the period. Thrivent Financial for Lutherans raised its position in shares of HubSpot by 23.7% in the 3rd quarter. Thrivent Financial for Lutherans now owns 23,789 shares of the software maker's stock worth $11,128,000 after acquiring an additional 4,559 shares in the last quarter. OFI Invest Asset Management raised its position in shares of HubSpot by 130.2% in the 4th quarter. OFI Invest Asset Management now owns 99,622 shares of the software maker's stock worth $39,978,000 after acquiring an additional 56,348 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank raised its position in shares of HubSpot by 65.9% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 44,583 shares of the software maker's stock worth $17,891,000 after acquiring an additional 17,713 shares in the last quarter. Finally, Slow Capital Inc. raised its position in shares of HubSpot by 35.9% in the 4th quarter. Slow Capital Inc. now owns 18,615 shares of the software maker's stock worth $7,470,000 after acquiring an additional 4,913 shares in the last quarter. 90.39% of the stock is currently 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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