HubSpot (NYSE:HUBS) Shares Gap Up - Time to Buy?

Key Points

• Gap up: HubSpot stock gapped up from $221.76 to an open of $235.42 and last traded at $232.70 (up ~7.3%) on volume ~207,151 shares.
• Analyst backdrop: Consensus is a "Moderate Buy" with 25 Buy, 2 Hold and 1 Sell rating and a consensus price target of $388.07, although several firms have recently trimmed targets into the $300–$350 range while maintaining buy/outperform views.
• Fundamentals vs. valuation: The company beat quarterly EPS ($3.09 vs. $2.99 est.) and revenue ($846.8M vs. $830.7M), with revenue up 20.4% YoY, but trades at a very high P/E (273.4) and has seen insider sales of ~26,483 shares (~$6.6M) in the last three months.

HubSpot, Inc. (NYSE:HUBS - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $221.76, but opened at $235.42. HubSpot shares last traded at $232.70, with a volume of 207,151 shares.

Analyst Ratings Changes

HUBS has been the topic of several research reports. Bank of America assumed coverage on HubSpot in a research report on Tuesday, March 31st. They issued a "buy" rating and a $300.00 target price on the stock. BTIG Research reaffirmed a "buy" rating and set a $300.00 price target on shares of HubSpot in a research report on Tuesday, April 21st. Truist Financial decreased their target price on shares of HubSpot from $650.00 to $300.00 and set a "buy" rating on the stock in a research report on Thursday, February 12th. Oppenheimer cut their price target on HubSpot from $550.00 to $350.00 and set an "outperform" rating for the company in a research note on Wednesday, February 4th. Finally, Wall Street Zen downgraded HubSpot from a "strong-buy" rating to a "buy" rating in a research report on Sunday, April 19th. Twenty-five analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, HubSpot currently has an average rating of "Moderate Buy" and a consensus price target of $388.07.

HubSpot Stock Up 7.3%

The business's 50 day simple moving average is $242.77 and its two-hundred day simple moving average is $323.93. The stock has a market cap of $12.25 billion, a P/E ratio of 273.42, a PEG ratio of 3.12 and a beta of 1.44.

HubSpot (NYSE:HUBS - Get Free Report) last announced its quarterly earnings results on Wednesday, February 11th. The software maker reported $3.09 EPS for the quarter, beating analysts' consensus estimates of $2.99 by $0.10. HubSpot had a return on equity of 3.64% and a net margin of 1.47%.The firm had revenue of $846.75 million for the quarter, compared to analyst estimates of $830.65 million. During the same period last year, the firm posted $2.32 earnings per share. The business's revenue for the quarter was up 20.4% on a year-over-year basis. As a group, research analysts forecast that HubSpot, Inc. will post 3.64 earnings per share for the current fiscal year.

Insider Buying and Selling

In other HubSpot news, Director Brian Halligan sold 8,292 shares of the company's stock in a transaction that occurred on Tuesday, April 21st. The shares were sold at an average price of $230.72, for a total value of $1,913,130.24. Following the completion of the transaction, the director directly owned 362,000 shares in the company, valued at approximately $83,520,640. This represents a 2.24% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Erika Ashley Fisher sold 841 shares of the firm's stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $238.01, for a total transaction of $200,166.41. Following the transaction, the insider directly owned 10,119 shares of the company's stock, valued at $2,408,423.19. The trade was a 7.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 26,483 shares of company stock worth $6,585,062 over the last three months. Insiders own 4.00% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of HUBS. Empowered Funds LLC grew its position in shares of HubSpot by 88.5% in the 1st quarter. Empowered Funds LLC now owns 1,570 shares of the software maker's stock valued at $897,000 after buying an additional 737 shares during the last quarter. NewEdge Advisors LLC lifted its stake in shares of HubSpot by 12.1% in the second quarter. NewEdge Advisors LLC now owns 4,788 shares of the software maker's stock worth $2,665,000 after acquiring an additional 516 shares during the period. Treasurer of the State of North Carolina lifted its stake in shares of HubSpot by 4.7% in the second quarter. Treasurer of the State of North Carolina now owns 23,754 shares of the software maker's stock worth $13,222,000 after acquiring an additional 1,077 shares during the period. Osterweis Capital Management Inc. bought a new stake in HubSpot in the second quarter valued at approximately $34,000. Finally, Alliancebernstein L.P. boosted its holdings in HubSpot by 35.0% in the second quarter. Alliancebernstein L.P. now owns 376,076 shares of the software maker's stock valued at $209,335,000 after acquiring an additional 97,469 shares during the last quarter. 90.39% of the stock is owned by 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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