HubSpot (NYSE:HUBS) Shares Down 4.6% on Analyst Downgrade

Shares of HubSpot, Inc. (NYSE:HUBS) fell 4.6% during mid-day trading on Tuesday after Wells Fargo & Company downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $221.09 and last traded at $220.5930. 506,359 shares changed hands during mid-day trading, a decline of 71% from the average daily volume of 1,765,338 shares. The stock had previously closed at $231.21.

A number of other brokerages have also issued reports on HUBS. UBS Group reaffirmed a “neutral” rating on shares of HubSpot in a research note on Wednesday, July 15th. William Blair lowered HubSpot from an “outperform” rating to a “market perform” rating in a report on Friday, May 8th. Evercore set a $225.00 target price on shares of HubSpot in a research note on Friday, May 8th. Raymond James Financial reaffirmed an “outperform” rating and set a $250.00 target price on shares of HubSpot in a report on Friday, May 8th. Finally, BMO Capital Markets decreased their price target on shares of HubSpot from $285.00 to $230.00 and set an “outperform” rating on the stock in a research note on Friday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, HubSpot presently has an average rating of “Moderate Buy” and an average target price of $308.32.

Insider Buying and Selling at HubSpot

In other news, Director Lorrie M. Norrington acquired 1,313 shares of the business’s stock in a transaction that occurred on Monday, May 11th. The stock was purchased at an average cost of $190.42 per share, for a total transaction of $250,021.46. Following the completion of the transaction, the director owned 2,838 shares in the company, valued at approximately $540,411.96. This trade represents a 86.10% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, insider Erika Ashley Fisher sold 915 shares of HubSpot stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $236.66, for a total transaction of $216,543.90. Following the transaction, the insider directly owned 16,270 shares in the company, valued at $3,850,458.20. This trade represents a 5.32% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have bought 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 insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in HUBS. Turning Point Benefit Group Inc. acquired a new stake in HubSpot during the third quarter worth $25,000. Rakuten Securities Inc. grew its holdings 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 purchasing an additional 47 shares during the period. Cary Street Partners Investment Advisory LLC purchased a new position in shares of HubSpot during the 4th quarter worth $33,000. Osterweis Capital Management Inc. acquired a new stake in shares of HubSpot during the 2nd quarter worth about $34,000. Finally, Larson Financial Group LLC raised its holdings in HubSpot by 378.9% in the 4th 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 during the period. 90.39% of the stock is currently owned by institutional investors and hedge funds.

HubSpot Trading Down 6.4%

The firm’s fifty day moving average is $200.60 and its 200-day moving average is $240.09. The stock has a market capitalization of $10.48 billion, a PE ratio of 107.09, a price-to-earnings-growth ratio of 2.39 and a beta of 1.22.

HubSpot (NYSE:HUBS) last announced its earnings results on Thursday, May 7th. The software maker reported $2.72 earnings per share for the quarter, topping the consensus estimate of $2.47 by $0.25. The company had revenue of $881.00 million during the quarter, compared to analyst estimates of $863.32 million. HubSpot had a net margin of 3.04% and a return on equity of 5.66%. HubSpot’s revenue was up 23.4% compared to the same quarter last year. During the same quarter last year, the firm posted $1.84 earnings per share. 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, equities analysts predict that HubSpot, Inc. will post 4.39 EPS for the current year.

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.