HubSpot's (HUBS) "Underperform" Rating Reiterated at Bank of America

Key Points

• Bank of America reiterated an "Underperform" rating on HubSpot and cut its price target to $180 (from $300), implying roughly a 26% downside from current levels.
• HubSpot beat Q1 estimates (EPS $2.72 vs. $2.47; revenue $881M, +23% YoY) and raised Q2 and FY26 guidance sharply (Q2 EPS 3.00–3.02; FY26 EPS 13.04–13.12), yet shares plunged about 16% after the report.
• Analyst views are mixed: several firms trimmed targets, but the street consensus remains a "Moderate Buy" with an average price target around $365.96 (23 Buys, 4 Holds, 2 Sells).

HubSpot (NYSE:HUBS - Get Free Report)'s stock had its "underperform" rating reaffirmed by equities researchers at Bank of America in a note issued to investors on Friday,Benzinga reports. They presently have a $180.00 target price on the software maker's stock, down from their previous target price of $300.00. Bank of America's target price points to a potential downside of 26.15% from the company's current price.

Other research analysts also recently issued research reports about the company. William Blair downgraded HubSpot to a "market perform" rating in a research note on Friday. Oppenheimer cut their price target on HubSpot from $550.00 to $350.00 and set an "outperform" rating for the company in a research note on Wednesday, February 4th. Mizuho cut their price target on HubSpot from $550.00 to $300.00 and set an "outperform" rating for the company in a research note on Thursday, February 12th. Wall Street Zen downgraded HubSpot from a "strong-buy" rating to a "buy" rating in a research note on Sunday, April 19th. Finally, Wells Fargo & Company cut their price target on HubSpot from $600.00 to $350.00 and set an "overweight" rating for the company in a research note on Thursday, February 12th. Twenty-three equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, HubSpot has an average rating of "Moderate Buy" and an average target price of $365.96.

HubSpot Stock Performance

Shares of HUBS opened at $243.74 on Friday. The stock has a market capitalization of $12.55 billion, a P/E ratio of 280.16, a P/E/G ratio of 3.21 and a beta of 1.23. HubSpot has a 1 year low of $187.45 and a 1 year high of $682.57. The company's fifty day moving average is $243.61 and its two-hundred day moving average is $317.94.

HubSpot (NYSE:HUBS - Get Free Report) last issued its 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 company had revenue of $881.00 million for the quarter, compared to analyst estimates of $863.32 million. HubSpot had a net margin of 1.47% and a return on equity of 3.64%. The business's revenue was up 23.4% on a year-over-year basis. During the same period in the previous year, the firm earned $1.84 EPS. HubSpot has set its Q2 2026 guidance at 3.000-3.020 EPS and its FY 2026 guidance at 13.040-13.120 EPS. Sell-side analysts predict that HubSpot will post 3.66 EPS for the current year.

Insider Transactions at HubSpot

In related news, Director Brian Halligan sold 8,292 shares of HubSpot stock in a transaction dated Tuesday, April 21st. The stock was sold at an average price of $230.72, for a total transaction of $1,913,130.24. Following the completion of the sale, the director owned 362,000 shares in the company, valued at approximately $83,520,640. This trade represents a 2.24% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Erika Ashley Fisher sold 915 shares of HubSpot stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $236.66, for a total value of $216,543.90. Following the sale, the insider owned 16,270 shares of the company's stock, valued at approximately $3,850,458.20. This represents a 5.32% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 25,968 shares of company stock valued at $6,453,082. 4.00% of the stock is currently owned by company insiders.

Institutional Trading of HubSpot

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

HubSpot News Roundup

Here are the key news stories impacting HubSpot this week:

• Positive Sentiment: Q1 beat and strong top-line: HubSpot reported $2.72 EPS vs. $2.47 expected and $881M revenue (+23% y/y), showing durable growth and subscription strength. Read More.
• Positive Sentiment: Raised guidance: management lifted Q2 EPS to $3.00–3.02 (vs. ~2.40 consensus) and FY26 EPS to $13.04–13.12 (well above consensus), which, if achieved, materially improves FY earnings outlook. Read More.
• Neutral Sentiment: AI product roadmap remains a key driver of the bull case: HubSpot’s Breeze AI agents and broader “AI-first CRM” messaging underpin longer-term revenue/margin upside, but investors want proof of adoption and retention. Read More.
• Negative Sentiment: Big post-earnings selloff despite the beat: shares fell sharply (reports ~16%) as players reacted to mixed signals — strong EPS but some guidance/revenue details and execution risk sparked profit-taking and short-term volatility. Read More.
• Negative Sentiment: Investor concerns and risk narrative: analysts and commentators flagged mounting risks (AI-driven churn fears, post-earnings volatility and execution/valuation questions) even as some see the pullback as a buying opportunity. Read More.
• Negative Sentiment: Insider sale: an officer sold ~$216.5k of stock, which can be perceived negatively by traders focused on insider activity. Read More.

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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