HubSpot (NYSE:HUBS) Shares Gap Up - Still a Buy?

Key Points

• HubSpot shares jumped from a $225.33 close to a $235.81 open and last traded near $241.15, supported by recent earnings that beat estimates on both EPS and revenue. Quarterly revenue rose 19.8% year over year.
• Analyst sentiment is mixed: 15 analysts rate the stock a Buy, 16 Hold, and two Sell, producing an overall “Hold” consensus with a $271.90 average price target. Recent targets range from $200 to $300, including notable downgrades from Bernstein and BTIG.
• Insider activity was mixed, with an executive selling shares while a director purchased 925 shares. Institutional investors own approximately 90.39% of HubSpot, while insiders own 3.70%.

HubSpot, Inc. (NYSE:HUBS - Get Free Report) shares gapped up prior to trading on Monday . The stock had previously closed at $225.33, but opened at $235.81. HubSpot shares last traded at $241.1510, with a volume of 138,738 shares changing hands.

Analysts Set New Price Targets

A number of research firms have commented on HUBS. BTIG Research reduced their target price on HubSpot from $300.00 to $250.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Cantor Fitzgerald restated a "neutral" rating and issued a $200.00 price objective on shares of HubSpot in a research report on Thursday, August 6th. Royal Bank Of Canada reissued an "outperform" rating and set a $300.00 price objective on shares of HubSpot in a research note on Friday. Sanford C. Bernstein downgraded HubSpot from an "outperform" rating to a "market perform" rating and reduced their target price for the stock from $381.00 to $220.00 in a research report on Thursday, August 6th. Finally, Citigroup decreased their price target on shares of HubSpot from $217.00 to $210.00 and set a "buy" rating on the stock in a report on Friday, August 7th. Fifteen investment analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $271.90.

HubSpot Stock Performance

The company has a market cap of $12.14 billion, a P/E ratio of 85.73, a P/E/G ratio of 2.43 and a beta of 1.18. The business has a fifty day simple moving average of $228.56 and a 200 day simple moving average of $224.36.

HubSpot (NYSE:HUBS - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The software maker reported $3.26 earnings per share for the quarter, beating analysts' consensus estimates of $3.02 by $0.24. The business had revenue of $911.74 million during 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 business's quarterly revenue was up 19.8% on a year-over-year basis. During the same period in the previous year, the business earned $2.19 EPS. HubSpot has set its FY 2026 guidance at 13.230-13.310 EPS and its Q3 2026 guidance at 3.250-3.270 EPS. Equities research analysts expect that HubSpot, Inc. will post 4.55 EPS for the current year.

Insider Buying and Selling at HubSpot

In other news, insider Erika Fisher sold 702 shares of the firm's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $235.22, for a total value of $165,124.44. Following the completion of the sale, the insider owned 14,581 shares of the company's stock, valued at $3,429,742.82. This trade represents a 4.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Gerald Dischler bought 925 shares of the business's stock in a transaction on Monday, August 10th. The stock was bought at an average price of $215.93 per share, with a total value of $199,735.25. Following the transaction, the director owned 1,940 shares in the company, valued at approximately $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 have sold a total of 26,202 shares of company stock valued at $5,477,709 in the last three months. 3.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Turning Point Benefit Group Inc. bought a new stake in shares of HubSpot during the 3rd quarter worth about $25,000. Rakuten Securities Inc. lifted its holdings in HubSpot by 783.3% in the 2nd quarter. Rakuten Securities Inc. now owns 53 shares of the software maker's stock worth $30,000 after purchasing an additional 47 shares during the last quarter. Cary Street Partners Investment Advisory LLC bought a new stake in HubSpot during the fourth quarter worth approximately $33,000. Osterweis Capital Management Inc. acquired a new position in HubSpot during the second quarter valued at approximately $34,000. Finally, Larson Financial Group LLC grew its holdings in HubSpot by 378.9% during the fourth quarter. Larson Financial Group LLC now owns 91 shares of the software maker's stock valued at $37,000 after purchasing an additional 72 shares during the last quarter. Institutional investors own 90.39% of the company's stock.

HubSpot Company Profile

HubSpot, Inc develops cloud-based customer relationship management (CRM) and marketing software for businesses. Its platform is designed to help organizations attract prospects, manage customer interactions, close sales and provide ongoing service through an integrated set of tools.

The company's products include Marketing Hub, Sales Hub, Service Hub, Content Hub, Operations Hub and Commerce Hub. These offerings support marketing automation, sales engagement, customer support, content management, data integration, payments and other commercial activities.

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