HubSpot (NYSE:HUBS) Trading 4.5% Higher - Time to Buy?

Key Points

• HubSpot shares jumped 4.5% to $270.79 on Thursday, but the move came on very light volume (258,494 shares, about 86% below the average), suggesting the rise may be thinly traded.
• The company beat quarterly estimates (EPS $3.09 vs. $2.99; revenue $846.75M, +20.4% YoY), yet the stock trades at a high valuation (P/E ~300) and remains below its 50‑day ($290.72) and 200‑day ($385.54) moving averages.
• Analysts hold a Moderate Buy consensus with an average price target of $454.20 (wide target dispersion and several recent target cuts), while insiders have sold about 26,691 shares (~$8.14M) over the past 90 days.

HubSpot, Inc. (NYSE:HUBS - Get Free Report)'s stock price shot up 4.5% during trading on Thursday . The stock traded as high as $275.43 and last traded at $270.7920. 258,494 shares traded hands during mid-day trading, a decline of 86% from the average session volume of 1,829,881 shares. The stock had previously closed at $259.10.

Wall Street Analyst Weigh In

Several research analysts have weighed in on HUBS shares. Citigroup increased their price target on shares of HubSpot from $600.00 to $640.00 and gave the company a "buy" rating in a report on Friday, February 13th. Needham & Company LLC decreased their target price on shares of HubSpot from $700.00 to $300.00 and set a "buy" rating on the stock in a research note on Thursday, February 12th. Oppenheimer dropped their price target on shares of HubSpot from $550.00 to $350.00 and set an "outperform" rating for the company in a research report on Wednesday, February 4th. Piper Sandler decreased their target price on shares of HubSpot from $400.00 to $280.00 and set an "overweight" rating for the company in a research report on Thursday, February 12th. Finally, Morgan Stanley reaffirmed an "overweight" rating on shares of HubSpot in a report on Thursday, February 12th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $454.20.

HubSpot Stock Performance

The stock's fifty day simple moving average is $290.72 and its two-hundred day simple moving average is $385.54. The company has a market cap of $13.70 billion, a price-to-earnings ratio of 300.48, a price-to-earnings-growth ratio of 4.02 and a beta of 1.40.

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

Insider Activity at HubSpot

In other news, insider Erika Ashley Fisher sold 841 shares of the company's stock in a transaction on Wednesday, February 4th. The stock was sold at an average price of $238.01, for a total transaction of $200,166.41. Following the completion of the sale, the insider directly owned 10,119 shares of the company's stock, valued at $2,408,423.19. This represents a 7.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Brian Halligan sold 8,500 shares of the firm's stock in a transaction that occurred on Tuesday, January 20th. The stock was sold at an average price of $303.38, for a total transaction of $2,578,730.00. Following the completion of the transaction, the director directly owned 487,344 shares of the company's stock, valued at $147,850,422.72. This represents a 1.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 26,691 shares of company stock worth $8,136,702 in the last ninety days. Corporate insiders own 4.00% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Goodman Advisory Group LLC bought a new stake in shares of HubSpot in the 2nd quarter worth about $27,000. Rakuten Securities Inc. increased its holdings in shares of HubSpot by 783.3% during the second quarter. Rakuten Securities Inc. now owns 53 shares of the software maker's stock worth $30,000 after buying an additional 47 shares in the last quarter. Strategic Advocates LLC bought a new position in shares of HubSpot in the third quarter valued at approximately $25,000. Turning Point Benefit Group Inc. acquired a new stake in shares of HubSpot in the third quarter valued at approximately $25,000. Finally, Osterweis Capital Management Inc. bought a new position in HubSpot in the 2nd quarter worth approximately $34,000. 90.39% of the stock is currently owned by institutional investors and hedge funds.

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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