HubSpot (NYSE:HUBS) Stock Rating Lowered by Citigroup

Key Points

• Citigroup downgraded HubSpot from "buy" to "neutral" with a $230 price target, implying about a 5.6% downside from the current share price.
• Despite several analyst cuts, the street consensus remains a Moderate Buy (22 Buys, 5 Holds, 2 Sells) with an average target of $358.70.
• HubSpot reported a Q1 beat ($2.72 EPS, $881M revenue, +23% y/y) and raised Q2 and FY26 guidance, but shares fell roughly 16% post-earnings and insiders have recently sold stock.

HubSpot (NYSE:HUBS - Get Free Report) was downgraded by investment analysts at Citigroup from a "buy" rating to a "neutral" rating in a report issued on Friday, Marketbeat reports. They presently have a $230.00 price target on the software maker's stock. Citigroup's price target would indicate a potential downside of 5.64% from the stock's current price.

HUBS has been the subject of a number of other research reports. Needham & Company LLC reduced their price objective on HubSpot from $700.00 to $300.00 and set a "buy" rating for the company in a research note on Thursday, February 12th. Piper Sandler cut their target price on HubSpot from $260.00 to $250.00 and set an "overweight" rating on the stock in a report on Friday. UBS Group reduced their price target on shares of HubSpot from $325.00 to $260.00 and set a "buy" rating for the company in a research report on Tuesday, April 14th. Royal Bank Of Canada restated an "outperform" rating and set a $400.00 price target on shares of HubSpot in a research note on Thursday, April 16th. Finally, The Goldman Sachs Group lowered their price objective on shares of HubSpot from $517.00 to $442.00 and set a "buy" rating on the stock in a report on Thursday, February 12th. Twenty-two analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, HubSpot has a consensus rating of "Moderate Buy" and an average target price of $358.70.

HubSpot Trading Up 3.6%

Shares of NYSE HUBS opened at $243.74 on Friday. The firm has a market capitalization of $12.55 billion, a P/E ratio of 280.16, a P/E/G ratio of 3.21 and a beta of 1.23. The firm's 50-day moving average price is $243.61 and its 200-day moving average price is $317.94. HubSpot has a 1-year low of $187.45 and a 1-year high of $682.57.

HubSpot (NYSE:HUBS - Get Free Report) last issued its earnings results on Thursday, May 7th. The software maker reported $2.72 EPS for the quarter, beating the consensus estimate of $2.47 by $0.25. HubSpot had a return on equity of 3.64% and a net margin of 1.47%.The company had revenue of $881.00 million during the quarter, compared to the consensus estimate of $863.32 million. During the same period last year, the business posted $1.84 EPS. The firm's revenue for the quarter was up 23.4% compared to the same quarter last year. HubSpot has set its Q2 2026 guidance at 3.000-3.020 EPS and its FY 2026 guidance at 13.040-13.120 EPS. Equities research analysts forecast that HubSpot will post 3.66 EPS for the current year.

Insider Buying and Selling

In other news, insider Erika Ashley Fisher sold 915 shares of HubSpot stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $236.66, for a total value of $216,543.90. Following the completion of the transaction, the insider owned 16,270 shares in the company, valued at $3,850,458.20. This trade represents a 5.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Brian Halligan sold 8,292 shares of the business'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 transaction of $1,913,130.24. Following the completion of the sale, the director directly owned 362,000 shares in the company, valued at approximately $83,520,640. This trade represents a 2.24% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 25,968 shares of company stock worth $6,453,082 in the last ninety days. 4.00% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Earned Wealth Advisors LLC bought a new position in shares of HubSpot in the first quarter worth $215,000. Meeder Advisory Services Inc. raised its stake in shares of HubSpot by 115.5% during the 1st quarter. Meeder Advisory Services Inc. now owns 1,321 shares of the software maker's stock valued at $322,000 after purchasing an additional 708 shares during the period. Parallel Advisors LLC raised its stake in shares of HubSpot by 5.1% during the 1st quarter. Parallel Advisors LLC now owns 5,559 shares of the software maker's stock valued at $1,357,000 after purchasing an additional 268 shares during the period. KBC Group NV lifted its holdings in HubSpot by 1.5% during the 1st quarter. KBC Group NV now owns 10,695 shares of the software maker's stock worth $2,611,000 after purchasing an additional 158 shares in the last quarter. Finally, SEB Asset Management AB purchased a new stake in HubSpot during the 1st quarter worth about $3,885,000. 90.39% of the stock is currently owned by hedge funds and other institutional investors.

Key HubSpot News

Here are the key news stories impacting HubSpot this week:

• Positive Sentiment: Q1 beat and strong top-line: HubSpot reported $2.72 EPS vs. $2.47 expected and $881M revenue (+23% y/y), showing durable growth and subscription strength. Read More.
• Positive Sentiment: Raised guidance: management lifted Q2 EPS to $3.00–3.02 (vs. ~2.40 consensus) and FY26 EPS to $13.04–13.12 (well above consensus), which, if achieved, materially improves FY earnings outlook. Read More.
• Neutral Sentiment: AI product roadmap remains a key driver of the bull case: HubSpot’s Breeze AI agents and broader “AI-first CRM” messaging underpin longer-term revenue/margin upside, but investors want proof of adoption and retention. Read More.
• Negative Sentiment: Big post-earnings selloff despite the beat: shares fell sharply (reports ~16%) as players reacted to mixed signals — strong EPS but some guidance/revenue details and execution risk sparked profit-taking and short-term volatility. Read More.
• Negative Sentiment: Investor concerns and risk narrative: analysts and commentators flagged mounting risks (AI-driven churn fears, post-earnings volatility and execution/valuation questions) even as some see the pullback as a buying opportunity. Read More.
• Negative Sentiment: Insider sale: an officer sold ~$216.5k of stock, which can be perceived negatively by traders focused on insider activity. Read More.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.