HubSpot's (HUBS) Outperform Rating Reaffirmed at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reaffirmed an "Outperform" on HubSpot with a $400 price target (about an 80.6% upside); analyst consensus is a "Moderate Buy" with an average target of $422.31 (27 Buys, 2 Holds, 1 Sell).
• Shares traded at $221.46 mid-day; HubSpot recently beat quarterly estimates ($3.09 EPS vs. $2.99 expected) and posted revenue of $846.75M, up 20.4% year-over-year, while trading at a high valuation (P/E ~254).
• Insiders sold 26,691 shares (~$7.25M) in the last 90 days, though insiders still own 4% of the company and institutional investors hold about 90.39% of the stock.

HubSpot (NYSE:HUBS - Get Free Report)'s stock had its "outperform" rating reaffirmed by analysts at Royal Bank Of Canada in a research report issued on Thursday,Benzinga reports. They presently have a $400.00 target price on the software maker's stock. Royal Bank Of Canada's price target suggests a potential upside of 80.62% from the company's previous close.

Other analysts also recently issued research reports about the stock. Stifel Nicolaus cut their price objective on shares of HubSpot from $375.00 to $325.00 and set a "buy" rating for the company in a report on Thursday, April 2nd. Canaccord Genuity Group set a $350.00 price objective on shares of HubSpot in a report on Thursday. KeyCorp cut their price objective on shares of HubSpot from $400.00 to $340.00 and set an "overweight" rating for the company in a report on Thursday, February 12th. Weiss Ratings reiterated a "sell (e+)" rating on shares of HubSpot in a report on Friday, January 9th. Finally, Citigroup reiterated a "buy" rating on shares of HubSpot in a report on Friday, April 10th. Twenty-seven analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $422.31.

HubSpot Stock Performance

Shares of NYSE HUBS traded up $2.84 during mid-day trading on Thursday, reaching $221.46. The company's stock had a trading volume of 369,306 shares, compared to its average volume of 1,694,520. The stock has a 50-day moving average of $244.85 and a two-hundred day moving average of $341.01. The stock has a market capitalization of $11.68 billion, a P/E ratio of 254.34, a P/E/G ratio of 2.86 and a beta of 1.44. HubSpot has a 1-year low of $187.45 and a 1-year high of $682.57.

HubSpot (NYSE:HUBS - Get Free Report) last released its quarterly earnings data on Wednesday, February 11th. The software maker reported $3.09 EPS for the quarter, beating analysts' consensus estimates of $2.99 by $0.10. The company had revenue of $846.75 million during the quarter, compared to the consensus estimate of $830.65 million. HubSpot had a net margin of 1.47% and a return on equity of 3.64%. HubSpot's quarterly revenue was up 20.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.32 EPS. Analysts predict that HubSpot will post 1.01 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Erika Ashley Fisher sold 841 shares of the firm's stock in a transaction that occurred on Wednesday, February 4th. The shares were sold at an average price of $238.01, for a total transaction of $200,166.41. Following the completion of the sale, the insider owned 10,119 shares in the company, valued at $2,408,423.19. This trade represents a 7.67% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Brian Halligan sold 8,500 shares of HubSpot stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $262.75, for a total transaction of $2,233,375.00. Following the completion of the sale, the director owned 370,558 shares of the company's stock, valued at $97,364,114.50. This trade represents a 2.24% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 26,691 shares of company stock valued at $7,250,662 in the last 90 days. Insiders own 4.00% of the company's stock.

Institutional Trading of HubSpot

Institutional investors have recently added to or reduced their stakes in the stock. Thrivent Financial for Lutherans increased its holdings in HubSpot by 23.7% in the 3rd quarter. Thrivent Financial for Lutherans now owns 23,789 shares of the software maker's stock valued at $11,128,000 after purchasing an additional 4,559 shares during the last quarter. Rakuten Investment Management Inc. purchased a new position in HubSpot in the 3rd quarter valued at approximately $48,548,000. Nordea Investment Management AB boosted its position in HubSpot by 34.9% in the 3rd quarter. Nordea Investment Management AB now owns 21,638 shares of the software maker's stock valued at $10,148,000 after buying an additional 5,595 shares during the period. OFI Invest Asset Management boosted its position in HubSpot by 130.2% in the 4th quarter. OFI Invest Asset Management now owns 99,622 shares of the software maker's stock valued at $39,978,000 after buying an additional 56,348 shares during the period. Finally, Triasima Portfolio Management inc. purchased a new position in HubSpot in the 3rd quarter valued at approximately $2,079,000. Institutional investors and hedge funds own 90.39% of the company's stock.

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.

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