HubSpot (NYSE:HUBS) Stock Jumps 7.6% - Here's Why

Key Points

• HubSpot shares rose 7.6% to about $243.33 in mid-day trading, despite unusually light volume. The move followed continued analyst interest, including Truist Financial raising its price target to $275.
• HubSpot’s latest quarterly results exceeded expectations: earnings per share came in at $3.26 versus $3.02 expected, while revenue reached $911.74 million and grew 19.8% year over year.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $264.97. Meanwhile, insiders sold roughly $6.0 million of stock over the past 90 days, while institutional investors own 90.39% of the company.

HubSpot, Inc. (NYSE:HUBS - Get Free Report) was up 7.6% during mid-day trading on Thursday. The stock traded as high as $237.45 and last traded at $243.3270. Approximately 123,866 shares changed hands during mid-day trading, a decline of 93% from the average session volume of 1,764,075 shares. The stock had previously closed at $226.23.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. Truist Financial raised their price target on shares of HubSpot from $230.00 to $275.00 and gave the company a "buy" rating in a research report on Monday, September 21st. Royal Bank Of Canada reiterated an "outperform" rating on shares of HubSpot in a research note on Tuesday, October 6th. Raymond James Financial lowered HubSpot from an "outperform" rating to a "market perform" rating in a report on Monday, October 5th. Zacks Research downgraded HubSpot from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, August 12th. Finally, KeyCorp dropped their target price on HubSpot from $290.00 to $285.00 and set an "overweight" rating on the stock in a report on Thursday, August 6th. Twelve investment analysts have rated the stock with a Buy rating, twenty have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $264.97.

HubSpot Price Performance

The company's fifty day moving average price is $228.93 and its 200 day moving average price is $217.64. The company has a market cap of $11.95 billion, a PE ratio of 84.78, a P/E/G ratio of 2.29 and a beta of 1.24.

HubSpot (NYSE:HUBS - Get Free Report) last released 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. HubSpot had a net margin of 4.26% and a return on equity of 8.66%. The company had revenue of $911.74 million for the quarter, compared to analyst estimates of $898.31 million. During the same period last year, the firm earned $2.19 earnings per share. The firm's revenue was up 19.8% on a year-over-year basis. HubSpot has set its FY 2026 guidance at 13.230-13.310 EPS and its Q3 2026 guidance at 3.250-3.270 EPS. On average, analysts forecast that HubSpot, Inc. will post 4.62 EPS for the current year.

Insider Transactions at HubSpot

In other news, Director Brian Halligan sold 8,500 shares of the company's stock in a transaction that occurred on Tuesday, July 21st. The stock was sold at an average price of $221.09, for a total value of $1,879,265.00. Following the completion of the transaction, the director directly owned 85,000 shares of the company's stock, valued at $18,792,650. This represents a 9.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Erika Fisher sold 702 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $235.22, for a total value of $165,124.44. Following the completion of the transaction, the insider directly owned 14,581 shares of the company's stock, valued at approximately $3,429,742.82. This represents a 4.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 26,202 shares of company stock worth $5,998,079 in the last 90 days. Insiders own 3.70% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Assenagon Asset Management S.A. lifted its stake in shares of HubSpot by 135.3% during the 2nd quarter. Assenagon Asset Management S.A. now owns 226,818 shares of the software maker's stock valued at $41,397,000 after buying an additional 130,433 shares in the last quarter. Oppenheimer Asset Management Inc. bought a new position in HubSpot in the 2nd quarter worth approximately $1,366,000. Meeder Asset Management Inc. bought a new position in HubSpot in the 2nd quarter worth approximately $5,860,000. The Manufacturers Life Insurance Company boosted its holdings in HubSpot by 175.3% in the 1st quarter. The Manufacturers Life Insurance Company now owns 11,063 shares of the software maker's stock worth $2,700,000 after buying an additional 7,044 shares during the period. Finally, Renaissance Technologies LLC purchased a new position in HubSpot in the 1st quarter valued at approximately $41,434,000. Institutional investors own 90.39% of the company's stock.

About HubSpot

HubSpot, Inc develops customer relationship management (CRM) software and related tools designed to help businesses attract, engage and retain customers. Its cloud-based platform brings together marketing, sales, customer service, content management, operations and commerce capabilities, allowing organizations to manage customer interactions across the business.

The company's products include tools for marketing automation, email marketing, lead generation, sales pipeline management, customer support, website and content management, analytics, payments and business operations.

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