HubSpot (NYSE:HUBS) Shares Gap Down Following Analyst Downgrade

HubSpot, Inc. (NYSE:HUBS) gapped down before the market opened on Monday after Wells Fargo & Company downgraded the stock from a strong-buy rating to a hold rating. The stock had previously closed at $224.26, but opened at $215.68. HubSpot shares last traded at $220.8380, with a volume of 123,375 shares.

A number of other research firms have also recently commented on HUBS. Weiss Ratings reaffirmed a “sell (d)” rating on shares of HubSpot in a research report on Wednesday, June 24th. KeyCorp dropped their price target on shares of HubSpot from $340.00 to $290.00 and set an “overweight” rating for the company in a research report on Friday, May 8th. Piper Sandler cut their price objective on HubSpot from $260.00 to $250.00 and set an “overweight” rating on the stock in a report on Friday, May 8th. Sanford C. Bernstein set a $381.00 price objective on shares of HubSpot in a report on Friday, May 8th. Finally, Evercore set a $225.00 target price on shares of HubSpot in a research note on Friday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, six have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, HubSpot has a consensus rating of “Moderate Buy” and a consensus target price of $308.32.

Insider Buying and Selling

In related news, insider Erika Ashley Fisher sold 915 shares of the company’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $236.66, for a total transaction of $216,543.90. Following the sale, the insider directly owned 16,270 shares in the company, valued at approximately $3,850,458.20. This represents a 5.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Yamini Rangan bought 2,750 shares of the business’s stock in a transaction that occurred on Tuesday, May 12th. The shares were purchased at an average price of $189.84 per share, for a total transaction of $522,060.00. Following the completion of the purchase, the chief executive officer directly owned 102,982 shares of the company’s stock, valued at approximately $19,550,102.88. This trade represents a 2.74% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders have acquired 14,063 shares of company stock worth $2,585,781 and have sold 17,915 shares worth $3,654,114. 3.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in HUBS. Turning Point Benefit Group Inc. purchased a new stake in shares of HubSpot during the 3rd quarter worth $25,000. Rakuten Securities Inc. grew its stake in shares of HubSpot by 783.3% during the second quarter. Rakuten Securities Inc. now owns 53 shares of the software maker’s stock worth $30,000 after purchasing an additional 47 shares in the last quarter. Cary Street Partners Investment Advisory LLC purchased a new position in HubSpot in the fourth quarter valued at $33,000. Osterweis Capital Management Inc. purchased a new position in HubSpot in the second quarter valued at $34,000. Finally, Larson Financial Group LLC raised its stake in HubSpot by 378.9% in the fourth quarter. Larson Financial Group LLC now owns 91 shares of the software maker’s stock valued at $37,000 after buying an additional 72 shares in the last quarter. Institutional investors and hedge funds own 90.39% of the company’s stock.

HubSpot Price Performance

The company has a market capitalization of $11.19 billion, a price-to-earnings ratio of 114.35, a PEG ratio of 2.52 and a beta of 1.22. The stock has a 50 day simple moving average of $200.10 and a two-hundred day simple moving average of $241.47.

HubSpot (NYSE:HUBS) last released its quarterly earnings data on Thursday, May 7th. The software maker reported $2.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.47 by $0.25. The business had revenue of $881.00 million during the quarter, compared to analysts’ expectations of $863.32 million. HubSpot had a return on equity of 5.66% and a net margin of 3.04%.The business’s quarterly revenue was up 23.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.84 EPS. HubSpot has set its Q2 2026 guidance at 3.000-3.020 EPS and its FY 2026 guidance at 13.040-13.120 EPS. Equities research analysts predict that HubSpot, Inc. will post 4.39 EPS for the current year.

About HubSpot

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.