HubSpot (NYSE:HUBS) Trading Down 8.5% – What’s Next?

HubSpot, Inc. (NYSE:HUBS)’s share price fell 8.5% on Wednesday . The stock traded as low as $219.01 and last traded at $219.73. 587,131 shares were traded during mid-day trading, a decline of 68% from the average session volume of 1,808,458 shares. The stock had previously closed at $240.16.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on HUBS. Zacks Research downgraded shares of HubSpot from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, April 14th. BTIG Research restated a “buy” rating and set a $300.00 price target on shares of HubSpot in a report on Tuesday, April 21st. Canaccord Genuity Group set a $335.00 price target on shares of HubSpot in a report on Friday, May 8th. KeyCorp decreased their price target on shares of HubSpot from $340.00 to $290.00 and set an “overweight” rating for the company in a report on Friday, May 8th. Finally, Barclays reduced their target price on shares of HubSpot from $300.00 to $270.00 and set an “overweight” rating for the company in a research note on Monday, May 11th. Twenty-two research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $311.00.

HubSpot Price Performance

The stock has a market capitalization of $11.29 billion, a price-to-earnings ratio of 115.37, a PEG ratio of 2.43 and a beta of 1.21. The stock’s 50 day simple moving average is $219.23 and its 200-day simple moving average is $284.21.

HubSpot (NYSE:HUBS) last posted its earnings results on Thursday, May 7th. The software maker reported $2.72 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 during the quarter, compared to analysts’ expectations of $863.32 million. During the same period in the previous year, the company earned $1.84 earnings per share. 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, equities research analysts anticipate that HubSpot, Inc. will post 4.39 earnings per share for the current fiscal year.

Insider Transactions at HubSpot

In other HubSpot news, Director Lorrie M. Norrington purchased 1,313 shares of the stock in a transaction on Monday, May 11th. The shares were purchased at an average price of $190.42 per share, with a total value of $250,021.46. Following the acquisition, the director directly owned 2,838 shares of the company’s stock, valued at $540,411.96. This represents a 86.10% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Yamini Rangan purchased 2,750 shares of the stock in a transaction on Tuesday, May 12th. The stock was acquired at an average cost of $189.84 per share, for a total transaction of $522,060.00. Following the acquisition, the chief executive officer directly owned 102,982 shares in the company, valued at approximately $19,550,102.88. This trade represents a 2.74% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders have purchased 14,063 shares of company stock worth $2,585,781 and have sold 26,207 shares worth $6,233,049. Corporate insiders own 3.70% of the company’s stock.

Institutional Investors Weigh In On HubSpot

Several institutional investors and hedge funds have recently bought and sold shares of HUBS. Strategic Advocates LLC bought a new stake in HubSpot in the 3rd quarter valued at $25,000. Turning Point Benefit Group Inc. bought a new stake in HubSpot in the 3rd quarter valued at $25,000. Rakuten Securities Inc. increased its holdings in HubSpot by 783.3% in the 2nd quarter. Rakuten Securities Inc. now owns 53 shares of the software maker’s stock valued at $30,000 after buying an additional 47 shares during the period. Westside Investment Management Inc. increased its holdings in HubSpot by 80.5% in the 3rd quarter. Westside Investment Management Inc. now owns 74 shares of the software maker’s stock valued at $33,000 after buying an additional 33 shares during the period. Finally, Cary Street Partners Investment Advisory LLC bought a new stake in HubSpot in the 4th quarter valued at $33,000. Institutional investors own 90.39% of the company’s stock.

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.