Morgan Stanley Has Lowered Expectations for HubSpot (NYSE:HUBS) Stock Price

Key Points

• Morgan Stanley cut its price target on HubSpot from $405 to $350 but kept an "overweight" rating, implying about a 43.6% upside from the current share price.
• HubSpot beat Q1 estimates (EPS $2.72 vs. $2.47; $881M revenue, +23% y/y) and raised Q2 and FY2026 guidance, yet shares fell roughly 16% in a post-earnings selloff amid execution and valuation concerns.
• Multiple analysts have trimmed targets (e.g., Needham, Wells Fargo, Stifel) while the consensus remains a "Moderate Buy" with an average target near $366; insiders have sold shares and institutional ownership is high (~90%).

HubSpot (NYSE:HUBS - Get Free Report) had its target price decreased by investment analysts at Morgan Stanley from $405.00 to $350.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has an "overweight" rating on the software maker's stock. Morgan Stanley's target price suggests a potential upside of 43.60% from the stock's current price.

HUBS has been the topic of a number of other research reports. Needham & Company LLC dropped their price target on HubSpot from $700.00 to $300.00 and set a "buy" rating on the stock in a research report on Thursday, February 12th. Stifel Nicolaus dropped their target price on HubSpot from $375.00 to $325.00 and set a "buy" rating on the stock in a research report on Thursday, April 2nd. Wells Fargo & Company dropped their target price on HubSpot from $600.00 to $350.00 and set an "overweight" rating on the stock in a research report on Thursday, February 12th. Cantor Fitzgerald lowered HubSpot from an "overweight" rating to a "neutral" rating and set a $200.00 target price on the stock. in a research report on Friday. Finally, Citigroup dropped their target price on HubSpot from $368.00 to $321.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. Twenty-three research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $365.96.

HubSpot Trading Up 3.6%

Shares of HUBS opened at $243.74 on Friday. HubSpot has a 1 year low of $187.45 and a 1 year high of $682.57. The stock has a market cap of $12.55 billion, a P/E ratio of 280.16, a price-to-earnings-growth ratio of 3.21 and a beta of 1.23. The stock's 50-day moving average price is $243.61 and its two-hundred day moving average price is $317.94.

HubSpot (NYSE:HUBS - Get Free Report) last issued its earnings results on Thursday, May 7th. The software maker reported $2.72 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.47 by $0.25. HubSpot had a return on equity of 3.64% and a net margin of 1.47%.The firm had revenue of $881.00 million for the quarter, compared to analysts' expectations of $863.32 million. During the same quarter last year, the business earned $1.84 earnings per share. The company's revenue was up 23.4% compared to the same quarter last year. 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, equities analysts forecast that HubSpot will post 3.66 EPS for the current year.

Insider Activity at HubSpot

In related news, insider Erika Ashley Fisher sold 915 shares of the stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $236.66, for a total transaction of $216,543.90. Following the completion of the transaction, the insider directly owned 16,270 shares of the company's stock, valued at approximately $3,850,458.20. This represents a 5.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Brian Halligan sold 8,500 shares of the stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $262.75, for a total value of $2,233,375.00. Following the transaction, the director directly owned 370,558 shares of the company's stock, valued at $97,364,114.50. This trade represents a 2.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 25,968 shares of company stock valued at $6,453,082 over the last three months. Insiders own 4.00% of the company's stock.

Institutional Trading of HubSpot

Several institutional investors and hedge funds have recently bought and sold shares of HUBS. Price T Rowe Associates Inc. MD raised its stake in HubSpot by 36.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,581,922 shares of the software maker's stock valued at $1,838,727,000 after buying an additional 1,224,424 shares during the period. Capital World Investors bought a new stake in HubSpot in the fourth quarter valued at approximately $259,930,000. AQR Capital Management LLC raised its stake in HubSpot by 117.6% in the fourth quarter. AQR Capital Management LLC now owns 1,188,981 shares of the software maker's stock valued at $477,138,000 after buying an additional 642,545 shares during the period. Pictet Asset Management Holding SA raised its stake in HubSpot by 32.7% in the fourth quarter. Pictet Asset Management Holding SA now owns 1,935,587 shares of the software maker's stock valued at $776,714,000 after buying an additional 476,740 shares during the period. Finally, Alyeska Investment Group L.P. raised its stake in HubSpot by 408.1% in the fourth quarter. Alyeska Investment Group L.P. now owns 560,088 shares of the software maker's stock valued at $224,763,000 after buying an additional 449,864 shares during the period. Institutional investors own 90.39% of the company's stock.

Key Headlines Impacting HubSpot

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.

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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