HubSpot (NYSE:HUBS) Shares Cross Below 200-Day Moving Average - Should You Sell?

Key Points

• HubSpot shares fell below their 200-day moving average of $231.50, trading as low as $224 and last quoted at about $226.43.
• Analyst sentiment is broadly neutral: the consensus rating is Hold, with an average price target of $272.77; 11 analysts rate the stock Buy, 21 Hold, and two Sell.
• In its latest reported quarter, HubSpot beat earnings and revenue estimates, posting EPS of $3.26 and revenue of $911.74 million; revenue rose 19.8% year over year.

Shares of HubSpot, Inc. (NYSE:HUBS - Get Free Report) crossed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $231.50 and traded as low as $224.00. HubSpot shares last traded at $226.4260, with a volume of 1,450,655 shares changing hands.

Wall Street Analyst Weigh In

HUBS has been the topic of a number of research reports. Wells Fargo & Company raised their price objective on HubSpot from $200.00 to $250.00 and gave the stock an "equal weight" rating in a report on Wednesday, October 28th. Citigroup lifted their price objective on HubSpot from $210.00 to $287.00 and gave the company a "neutral" rating in a research note on Tuesday, October 27th. Raymond James Financial cut HubSpot from an "outperform" rating to a "market perform" rating in a report on Monday, October 5th. Zacks Research downgraded shares of HubSpot from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 12th. Finally, JPMorgan Chase & Co. lowered shares of HubSpot from an "overweight" rating to a "neutral" rating and cut their price target for the company from $268.00 to $240.00 in a report on Thursday, October 8th. Eleven investment analysts have rated the stock with a Buy rating, twenty-one have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, HubSpot currently has an average rating of "Hold" and an average target price of $272.77.

HubSpot Stock Down 3.0%

The firm has a market cap of $11.29 billion, a price-to-earnings ratio of 80.01, a price-to-earnings-growth ratio of 2.37 and a beta of 1.14. The business has a 50 day moving average price of $234.23 and a 200-day moving average price of $231.50.

HubSpot (NYSE:HUBS - Get Free Report) last announced its earnings results on Wednesday, August 5th. The software maker reported $3.26 EPS for the quarter, beating the consensus estimate of $3.02 by $0.24. The business had revenue of $911.74 million for the quarter, compared to the consensus estimate of $898.31 million. HubSpot had a return on equity of 8.66% and a net margin of 4.26%. The company's revenue was up 19.8% on a year-over-year basis. During the same period last year, the business posted $2.19 EPS. Research analysts anticipate that HubSpot, Inc. will post 4.63 earnings per share for the current fiscal year.

Insider Buying and Selling at HubSpot

In related news, Director Brian Halligan sold 8,500 shares of HubSpot stock in a transaction on Tuesday, October 20th. The shares were sold at an average price of $239.57, for a total transaction of $2,036,345.00. Following the sale, the director owned 59,500 shares of the company's stock, valued at $14,254,415. The trade was a 12.50% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Gerald Dischler acquired 925 shares of the business's stock in a transaction on Monday, August 10th. The stock was purchased at an average price of $215.93 per share, for a total transaction of $199,735.25. Following the acquisition, the director directly owned 1,940 shares in the company, valued at $418,904.20. This represents a 91.13% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold 25,500 shares of company stock valued at $5,990,035 over the last 90 days. Insiders own 3.70% of the company's stock.

Institutional Trading of HubSpot

Several large investors have recently modified their holdings of the business. BlackRock Inc. acquired a new stake in HubSpot in the second quarter worth $631,386,000. Arrowstreet Capital Limited Partnership lifted its stake in HubSpot by 352.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 903,559 shares of the software maker's stock valued at $220,559,000 after buying an additional 703,706 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. bought a new stake in HubSpot in the second quarter valued at $112,671,000. Bank of America Corp DE acquired a new position in shares of HubSpot during the second quarter valued at $70,174,000. Finally, Edmond DE Rothschild Holding S.A. acquired a new position in shares of HubSpot during the second quarter valued at $64,616,000. 90.39% of the stock is currently owned by institutional investors and hedge funds.

About HubSpot

HubSpot, Inc is a cloud-based customer relationship management (CRM) platform provider serving businesses that want to attract, engage and retain customers. Its platform brings together tools for marketing, sales, customer service, content management, operations and commerce, helping organizations manage customer interactions across the customer lifecycle.

The company's offerings include marketing automation, email marketing, lead generation, website and content management, sales pipeline and engagement tools, customer support and help-desk capabilities, reporting and analytics, and payment and commerce features.

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