HubSpot (NYSE:HUBS) Raised to Outperform at Sanford C. Bernstein

Key Points

• HubSpot was upgraded by Sanford C. Bernstein from a "market perform" rating to an "outperform" rating, with a target price set at $606.00, indicating a potential upside of 28.64%.
• The company reported a quarterly earnings of $2.19 per share, exceeding analysts' expectations, alongside a revenue of $760.87 million, reflecting a 19.4% year-over-year growth.
• Insider selling was reported, with CEO Yamini Rangan and CFO Kathryn Bueker selling shares, resulting in a 3.59% and 1.47% decrease in their ownership stakes, respectively.

HubSpot (NYSE:HUBS - Get Free Report) was upgraded by stock analysts at Sanford C. Bernstein from a "market perform" rating to an "outperform" rating in a research report issued to clients and investors on Wednesday, MarketBeat.com reports. The brokerage currently has a $606.00 price objective on the software maker's stock. Sanford C. Bernstein's price objective suggests a potential upside of 24.29% from the stock's previous close.

Other research analysts have also recently issued reports about the stock. Piper Sandler raised shares of HubSpot from a "neutral" rating to an "overweight" rating and boosted their target price for the stock from $645.00 to $675.00 in a research report on Thursday, August 7th. Barclays cut their price objective on shares of HubSpot from $745.00 to $675.00 and set an "overweight" rating on the stock in a report on Monday, July 21st. Canaccord Genuity Group cut their price objective on shares of HubSpot from $765.00 to $700.00 and set a "buy" rating on the stock in a report on Thursday, August 7th. BMO Capital Markets cut their price objective on shares of HubSpot from $650.00 to $600.00 and set an "outperform" rating on the stock in a report on Thursday, August 7th. Finally, Cantor Fitzgerald began coverage on shares of HubSpot in a report on Tuesday, June 3rd. They issued an "overweight" rating and a $775.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $722.93.

HubSpot Stock Performance

HubSpot stock traded up $23.27 during midday trading on Wednesday, reaching $487.58. The stock had a trading volume of 1,132,340 shares, compared to its average volume of 921,969. HubSpot has a twelve month low of $418.34 and a twelve month high of $881.13. The stock has a market capitalization of $25.69 billion, a PE ratio of -2,119.90, a price-to-earnings-growth ratio of 16.80 and a beta of 1.58. The stock's 50-day simple moving average is $504.15 and its 200 day simple moving average is $567.81.

HubSpot (NYSE:HUBS - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The software maker reported $2.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.12 by $0.07. HubSpot had a positive return on equity of 1.74% and a negative net margin of 0.42%.The firm had revenue of $760.87 million during the quarter, compared to the consensus estimate of $739.94 million. During the same period in the prior year, the firm earned $1.94 EPS. The firm's quarterly revenue was up 19.4% compared to the same quarter last year. Equities analysts predict that HubSpot will post 1.01 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Brian Halligan sold 8,500 shares of the firm's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $449.84, for a total value of $3,823,640.00. Following the transaction, the director directly owned 522,435 shares in the company, valued at approximately $235,012,160.40. This trade represents a 1.60% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Yamini Rangan sold 2,383 shares of the firm's stock in a transaction dated Wednesday, July 2nd. The stock was sold at an average price of $551.79, for a total transaction of $1,314,915.57. Following the completion of the transaction, the chief executive officer owned 63,918 shares in the company, valued at approximately $35,269,313.22. The trade was a 3.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 28,498 shares of company stock valued at $14,752,256 in the last ninety days. Corporate insiders own 4.00% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Price T Rowe Associates Inc. MD grew its position in shares of HubSpot by 17.0% during the first quarter. Price T Rowe Associates Inc. MD now owns 4,910,062 shares of the software maker's stock worth $2,805,070,000 after acquiring an additional 714,980 shares during the last quarter. Jennison Associates LLC grew its position in shares of HubSpot by 548.6% during the second quarter. Jennison Associates LLC now owns 794,677 shares of the software maker's stock worth $442,341,000 after acquiring an additional 672,158 shares during the last quarter. Norges Bank bought a new position in shares of HubSpot during the second quarter worth about $269,941,000. Massachusetts Financial Services Co. MA grew its position in shares of HubSpot by 37.3% during the first quarter. Massachusetts Financial Services Co. MA now owns 927,927 shares of the software maker's stock worth $530,115,000 after acquiring an additional 251,853 shares during the last quarter. Finally, Vanguard Group Inc. grew its position in shares of HubSpot by 4.0% during the first quarter. Vanguard Group Inc. now owns 5,246,734 shares of the software maker's stock worth $2,997,407,000 after acquiring an additional 201,994 shares during the last quarter. 90.39% of the stock is currently owned by institutional investors.

About HubSpot

HubSpot, Inc, together with its subsidiaries, provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. The company's CRM platform includes Marketing Hub, a toolset for marketing automation and email, social media, SEO, and reporting and analytics; Sales Hub offers email templates and tracking, conversations and live chat, meeting and call scheduling, lead and website visit alerts, lead scoring, sales automation, pipeline management, quoting, forecasting, and reporting; Service Hub, a service software designed to help businesses manage, respond, and connect with customers; and Content Management Systems Hub enables businesses to create new and edit existing web content.