HubSpot (NYSE:HUBS) Upgraded by Zacks Research to "Strong-Buy" Rating

Key Points

• Zacks Research upgraded HubSpot from “hold” to “strong-buy,” adding to a broadly positive analyst backdrop even as some firms recently trimmed targets or downgraded the stock.
• HubSpot’s latest quarterly results beat expectations, with EPS of $2.72 versus $2.47 expected and revenue of $881 million topping estimates; revenue also rose 23.4% year over year.
• The stock has seen mixed insider activity and heavy institutional ownership, while analysts currently view it as a Moderate Buy with an average price target of $311.

HubSpot (NYSE:HUBS - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a report released on Monday,Zacks.com reports.

HUBS has been the topic of a number of other research reports. BNP Paribas Exane cut HubSpot from an "outperform" rating to a "neutral" rating and set a $210.00 price target on the stock. in a report on Monday, May 11th. Barclays reduced their price target on HubSpot from $300.00 to $270.00 and set an "overweight" rating for the company in a research report on Monday, May 11th. Morgan Stanley lowered their price target on HubSpot from $405.00 to $350.00 and set an "overweight" rating on the stock in a report on Friday, May 8th. Jefferies Financial Group reissued a "buy" rating and set a $250.00 target price on shares of HubSpot in a research note on Friday, May 8th. Finally, Raymond James Financial restated an "outperform" rating and set a $250.00 price target on shares of HubSpot in a research report on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $311.00.

HubSpot Price Performance

Shares of HUBS opened at $209.75 on Monday. The company has a market cap of $10.74 billion, a P/E ratio of 109.82, a PEG ratio of 2.38 and a beta of 1.22. The stock has a fifty day moving average price of $198.73 and a 200 day moving average price of $247.72. HubSpot has a 12 month low of $169.63 and a 12 month high of $568.16.

HubSpot (NYSE:HUBS - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The software maker reported $2.72 EPS for the quarter, topping the consensus estimate of $2.47 by $0.25. The business had revenue of $881.00 million during the quarter, compared to analyst estimates of $863.32 million. HubSpot had a net margin of 3.04% and a return on equity of 5.66%. The company's quarterly revenue was up 23.4% on a year-over-year basis. During the same quarter 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. As a group, research analysts anticipate that HubSpot will post 4.39 earnings per share for the current year.

Insider Activity

In other HubSpot news, insider Erika Ashley Fisher sold 915 shares of the business's 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 sale, the insider directly owned 16,270 shares in the company, valued at approximately $3,850,458.20. The trade was a 5.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Yamini Rangan purchased 2,750 shares of the business's stock in a transaction on Tuesday, May 12th. The stock was acquired at an average cost of $189.84 per share, with a total value of $522,060.00. Following the completion of the acquisition, the chief executive officer directly owned 102,982 shares in the company, valued at $19,550,102.88. The trade was a 2.74% increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders acquired 14,063 shares of company stock valued at $2,585,781 and sold 26,207 shares valued at $5,567,244. 3.70% of the stock is currently owned by insiders.

Institutional Trading of HubSpot

Several institutional investors and hedge funds have recently added to or reduced their stakes in HUBS. Rakuten Securities Inc. lifted its position in shares of HubSpot by 783.3% during the 2nd quarter. Rakuten Securities Inc. now owns 53 shares of the software maker's stock valued at $30,000 after acquiring an additional 47 shares during the last quarter. Strategic Advocates LLC acquired a new position in shares of HubSpot in the 3rd quarter worth $25,000. Turning Point Benefit Group Inc. acquired a new position in shares of HubSpot in the 3rd quarter worth $25,000. Osterweis Capital Management Inc. acquired a new stake in shares of HubSpot during the second quarter worth $34,000. Finally, Cary Street Partners Investment Advisory LLC acquired a new stake in shares of HubSpot during the fourth quarter worth $33,000. 90.39% of the stock is 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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