HubSpot (NYSE:HUBS) Shares Gap Up - Here's Why

HubSpot, Inc. (NYSE:HUBS - Get Free Report)'s share price gapped up before the market opened on Thursday. The stock had previously closed at $202.88, but opened at $211.90. HubSpot shares last traded at $215.9910, with a volume of 422,635 shares.

More HubSpot News

Here's some of the latest news about HUBS:

• Positive Sentiment: HubSpot forecast FY2026 EPS of $13.59–$13.61, above the $11.84 consensus, and Q4 EPS of $3.85–$3.87, ahead of the $3.44 consensus. Revenue guidance was broadly in line with estimates, so the upbeat signal is mainly on earnings. HubSpot guidance and growth-stock article
• Positive Sentiment: Co-founder Brian Halligan is returning as CEO to lead a “refounding” of the company. His return may reassure investors seeking renewed direction and leadership continuity. Reuters article on Halligan’s return
• Neutral Sentiment: The CEO change is also a transition risk: investors will look for details on HubSpot’s strategy and execution under Halligan, as well as the handoff involving Karen Burgess. HubSpot leadership announcement

Analysts Set New Price Targets

A number of equities analysts have issued reports on HUBS shares. Zacks Research lowered shares of HubSpot from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 12th. Sanford C. Bernstein downgraded shares of HubSpot from an "outperform" rating to a "market perform" rating and dropped their price objective for the company from $381.00 to $220.00 in a report on Thursday, August 6th. Cantor Fitzgerald downgraded shares of HubSpot from a "neutral" rating to an "underweight" rating and dropped their price objective for the company from $265.00 to $170.00 in a report on Thursday, November 5th. Stephens increased their price objective on shares of HubSpot from $251.00 to $255.00 and gave the stock an "equal weight" rating in a research note on Monday, September 21st. Finally, Canaccord Genuity Group reduced their target price on shares of HubSpot from $335.00 to $300.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Eight research analysts have rated the stock with a Buy rating, twenty-two have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, HubSpot presently has an average rating of "Hold" and a consensus price target of $251.23.

HubSpot Price Performance

The stock has a market capitalization of $10.62 billion, a price-to-earnings ratio of 51.84, a price-to-earnings-growth ratio of 1.88 and a beta of 1.14. The firm has a fifty day moving average of $228.74 and a 200 day moving average of $228.20.

HubSpot (NYSE:HUBS - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The software maker reported $3.81 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.27 by $0.54. HubSpot had a return on equity of 12.18% and a net margin of 5.95%. The company had revenue of $947.57 million during the quarter, compared to the consensus estimate of $925.50 million. During the same period in the previous year, the company posted $2.66 earnings per share. HubSpot's revenue for the quarter was up 17.1% on a year-over-year basis. Research analysts predict that HubSpot, Inc. will post 5.12 EPS for the current year.

Insider Buying and Selling at HubSpot

In related news, Director Brian Halligan sold 8,500 shares of the firm's 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 in the company, valued at approximately $14,254,415. This trade represents a 12.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Erika Fisher sold 702 shares of the firm's stock in a transaction on Tuesday, November 3rd. The shares were sold at an average price of $227.72, for a total transaction of $159,859.44. Following the sale, the insider owned 12,829 shares in the company, valued at approximately $2,921,419.88. This represents a 5.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 26,202 shares of company stock valued at $6,149,894. Company insiders own 3.70% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in HUBS. BlackRock Inc. purchased a new stake in shares of HubSpot during the 2nd quarter worth about $631,386,000. Pictet Asset Management Holding SA grew its position in shares of HubSpot by 2.0% during the 3rd quarter. Pictet Asset Management Holding SA now owns 1,689,478 shares of the software maker's stock valued at $346,208,000 after acquiring an additional 33,728 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in shares of HubSpot by 352.1% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 903,559 shares of the software maker's stock valued at $220,559,000 after purchasing an additional 703,706 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of HubSpot in the 2nd quarter valued at about $112,671,000. Finally, Amundi increased its stake in shares of HubSpot by 33.4% in the 1st quarter. Amundi now owns 586,037 shares of the software maker's stock valued at $143,052,000 after purchasing an additional 146,871 shares in the last quarter. Hedge funds and other institutional investors own 90.39% of the company's stock.

HubSpot Company Profile

HubSpot, Inc. develops cloud-based customer relationship management software designed to help businesses attract and engage customers, manage sales, and provide customer support. Founded in 2006 by Brian Halligan and Dharmesh Shah, the company helped popularize inbound marketing, an approach focused on drawing customers in with useful content and experiences. Its platform combines a central CRM with products for marketing, sales, customer service, content management, operations, and commerce. HubSpot also offers automation, analytics, and artificial intelligence features to help organizations manage customer interactions and coordinate business processes.

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