HubSpot (NYSE:HUBS) Trading Down 8.2% - What's Next?

Key Points

• HubSpot shares fell 8.2% to $230.49, with trading volume down sharply versus the daily average. The stock’s market capitalization is approximately $11.83 billion.
• Despite the selloff, HubSpot reported quarterly EPS of $2.72 versus the $2.47 consensus estimate, while revenue reached $881 million and grew 23.4% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $307.86.
• Company insiders bought shares, including CEO Yamini Rangan’s approximately $522,000 purchase and CTO Dharmesh Shah’s $1.8 million purchase. Institutional investors own roughly 90.4% of the stock.

HubSpot, Inc. (NYSE:HUBS - Get Free Report)'s share price fell 8.2% on Thursday . The company traded as low as $232.03 and last traded at $230.49. Approximately 253,036 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 1,761,721 shares. The stock had previously closed at $251.12.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on HUBS. Stifel Nicolaus set a $275.00 price objective on HubSpot in a research report on Friday, May 8th. BMO Capital Markets cut their target price on shares of HubSpot from $285.00 to $230.00 and set an "outperform" rating for the company in a research note on Friday, May 8th. Royal Bank Of Canada dropped their price objective on shares of HubSpot from $400.00 to $350.00 and set an "outperform" rating on the stock in a report on Friday, May 8th. Jefferies Financial Group reiterated a "buy" rating and issued a $250.00 target price on shares of HubSpot in a research note on Friday, May 8th. Finally, Truist Financial cut their price target on HubSpot from $300.00 to $230.00 and set a "buy" rating for the company in a report on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, HubSpot presently has an average rating of "Moderate Buy" and a consensus target price of $307.86.

HubSpot Trading Down 8.0%

The stock has a market cap of $11.83 billion, a price-to-earnings ratio of 120.97, a P/E/G ratio of 2.60 and a beta of 1.22. The company has a 50 day simple moving average of $202.71 and a 200-day simple moving average of $234.30.

HubSpot (NYSE:HUBS - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The software maker reported $2.72 earnings per share for the quarter, topping the consensus estimate of $2.47 by $0.25. The company had revenue of $881.00 million during the quarter, compared to analysts' expectations of $863.32 million. HubSpot had a return on equity of 5.66% and a net margin of 3.04%.HubSpot's revenue for the quarter was up 23.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.84 earnings per share. 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 analysts forecast that HubSpot, Inc. will post 4.39 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Yamini Rangan bought 2,750 shares of the stock in a transaction that occurred on Tuesday, May 12th. The shares were acquired at an average cost of $189.84 per share, for a total transaction of $522,060.00. Following the completion of the acquisition, the chief executive officer owned 102,982 shares in the company, valued at approximately $19,550,102.88. This represents a 2.74% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CTO Dharmesh Shah purchased 10,000 shares of the business's stock in a transaction on Tuesday, May 12th. The stock was purchased at an average price of $181.37 per share, with a total value of $1,813,700.00. Following the purchase, the chief technology officer owned 1,295,400 shares of the company's stock, valued at approximately $234,946,698. The trade was a 0.78% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders purchased 14,063 shares of company stock worth $2,585,781 and sold 26,415 shares worth $5,533,379. Corporate insiders own 3.70% of the company's stock.

Institutional Investors Weigh In On HubSpot

Hedge funds have recently bought and sold shares of the company. Fluent Financial LLC acquired a new position in HubSpot during the second quarter worth approximately $763,000. Assenagon Asset Management S.A. boosted its stake in shares of HubSpot by 135.3% during the 2nd quarter. Assenagon Asset Management S.A. now owns 226,818 shares of the software maker's stock worth $41,397,000 after acquiring an additional 130,433 shares during the period. CX Institutional increased its holdings in shares of HubSpot by 4,785.7% during the 2nd quarter. CX Institutional now owns 342 shares of the software maker's stock worth $62,000 after acquiring an additional 335 shares during the last quarter. Basecamp Wealth Advisors LLC increased its holdings in shares of HubSpot by 18.5% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 435 shares of the software maker's stock worth $106,000 after acquiring an additional 68 shares during the last quarter. Finally, Empowered Funds LLC raised its stake in HubSpot by 84.5% in the 1st quarter. Empowered Funds LLC now owns 3,938 shares of the software maker's stock valued at $961,000 after acquiring an additional 1,804 shares during the period. 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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