Wall Street Zen Downgrades HubSpot (NYSE:HUBS) to Buy

Key Points

• Wall Street Zen downgraded HubSpot from “strong-buy” to “buy”, adding to a wave of mixed analyst sentiment around the stock.
• Despite the downgrade, most analysts remain constructive: 21 Buy ratings, 7 Hold, and 2 Sell, with an average price target of $311.
• HubSpot reported better-than-expected Q1 results, with EPS of $2.72 versus $2.47 expected and revenue of $881 million, up 23.4% year over year.

HubSpot (NYSE:HUBS - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

Several other research analysts have also recently commented on the company. Wells Fargo & Company reduced their price target on HubSpot from $350.00 to $300.00 and set an "overweight" rating for the company in a research report on Friday, May 8th. BNP Paribas Exane lowered HubSpot from an "outperform" rating to a "neutral" rating and set a $210.00 price target on the stock. in a research report on Monday, May 11th. The Goldman Sachs Group reiterated a "buy" rating and set a $382.00 price objective on shares of HubSpot in a research note on Friday, May 8th. Cantor Fitzgerald downgraded HubSpot from an "overweight" rating to a "neutral" rating and cut their price objective for the company from $325.00 to $200.00 in a report on Friday, May 8th. Finally, Jefferies Financial Group reissued a "buy" rating and issued a $250.00 price objective on shares of HubSpot in a report on Friday, May 8th. Twenty-one equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $311.00.

HubSpot Trading Down 0.1%

Shares of HUBS opened at $192.00 on Friday. HubSpot has a 12 month low of $169.63 and a 12 month high of $568.16. The firm has a fifty day simple moving average of $201.62 and a 200 day simple moving average of $257.54. The stock has a market capitalization of $9.83 billion, a price-to-earnings ratio of 100.52, a PEG ratio of 2.10 and a beta of 1.22.

HubSpot (NYSE:HUBS - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The software maker reported $2.72 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.47 by $0.25. HubSpot had a net margin of 3.04% and a return on equity of 5.66%. The firm had revenue of $881.00 million for the quarter, compared to analyst estimates of $863.32 million. During the same period in the previous year, the business earned $1.84 EPS. 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, research analysts predict that HubSpot will post 4.39 earnings per share for the current fiscal year.

Insider Activity

In other HubSpot news, CEO Yamini Rangan purchased 2,750 shares of the stock in a transaction on Tuesday, May 12th. The shares were purchased at an average price of $189.84 per share, with a total value of $522,060.00. Following the completion of the transaction, the chief executive officer directly owned 102,982 shares in the company, valued at $19,550,102.88. This represents a 2.74% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Lorrie M. Norrington acquired 1,313 shares of the company's stock in a transaction on Monday, May 11th. The stock was acquired at an average price of $190.42 per share, for a total transaction of $250,021.46. Following the purchase, the director directly owned 2,838 shares of the company's stock, valued at approximately $540,411.96. This trade represents a 86.10% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have acquired 14,063 shares of company stock valued at $2,585,781 and have sold 26,207 shares valued at $5,567,244. 3.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On HubSpot

A number of large investors have recently added to or reduced their stakes in the business. National Bank of Canada FI boosted its position in HubSpot by 8.6% during the third quarter. National Bank of Canada FI now owns 379 shares of the software maker's stock worth $177,000 after purchasing an additional 30 shares during the period. Jackson Thornton Wealth Management LLC raised its position in shares of HubSpot by 6.6% in the fourth quarter. Jackson Thornton Wealth Management LLC now owns 691 shares of the software maker's stock valued at $274,000 after purchasing an additional 43 shares during the period. Altman Advisors Inc. raised its position in shares of HubSpot by 1.4% in the third quarter. Altman Advisors Inc. now owns 3,352 shares of the software maker's stock valued at $1,568,000 after purchasing an additional 45 shares during the period. Rakuten Securities Inc. lifted its stake in shares of HubSpot by 783.3% during the 2nd quarter. Rakuten Securities Inc. now owns 53 shares of the software maker's stock worth $30,000 after buying an additional 47 shares during the last quarter. Finally, Orion Porfolio Solutions LLC lifted its stake in shares of HubSpot by 2.9% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 1,784 shares of the software maker's stock worth $994,000 after buying an additional 51 shares during the last quarter. Institutional investors own 90.39% of the company's stock.

HubSpot Company Profile

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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