HubSpot (NYSE:HUBS) Shares Gap Down – Should You Sell?

HubSpot, Inc. (NYSE:HUBS) gapped down prior to trading on Thursday . The stock had previously closed at $197.82, but opened at $190.00. HubSpot shares last traded at $200.5240, with a volume of 239,594 shares trading hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the company. Cantor Fitzgerald downgraded HubSpot from an “overweight” rating to a “neutral” rating and decreased their target price for the stock from $325.00 to $200.00 in a research report on Friday, May 8th. Wall Street Zen cut HubSpot from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 4th. Citigroup downgraded HubSpot from a “buy” rating to a “neutral” rating and reduced their price objective for the stock from $321.00 to $230.00 in a research report on Friday, May 8th. William Blair cut HubSpot from an “outperform” rating to a “market perform” rating in a research report on Friday, May 8th. Finally, Truist Financial cut their target price on HubSpot from $300.00 to $230.00 and set a “buy” rating for the company in a research note on Friday, May 8th. Twenty-one research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $311.00.

HubSpot Price Performance

The firm has a market cap of $10.45 billion, a P/E ratio of 106.71, a PEG ratio of 2.24 and a beta of 1.22. The stock’s 50 day moving average is $200.31 and its two-hundred day moving average is $252.93.

HubSpot (NYSE:HUBS) last announced its quarterly earnings results on Thursday, May 7th. The software maker reported $2.72 EPS for the quarter, topping 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 quarter last year, the company earned $1.84 earnings per share. The company’s revenue for the quarter 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 forecast that HubSpot, Inc. will post 4.39 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CTO Dharmesh Shah purchased 10,000 shares of the stock in a transaction on Tuesday, May 12th. The shares were purchased at an average cost of $181.37 per share, for a total transaction of $1,813,700.00. Following the completion of the transaction, the chief technology officer directly owned 1,295,400 shares of the company’s stock, valued at approximately $234,946,698. The trade was a 0.78% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Erika Ashley Fisher sold 915 shares of the stock in a transaction on Monday, May 4th. The stock was sold at an average price of $236.66, for a total value of $216,543.90. Following the transaction, the insider owned 16,270 shares of the company’s stock, valued at $3,850,458.20. This represents a 5.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have acquired 14,063 shares of company stock worth $2,585,781 and have sold 26,207 shares worth $5,567,244. Corporate insiders own 3.70% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Price T Rowe Associates Inc. MD raised its stake in shares of HubSpot by 36.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,581,922 shares of the software maker’s stock worth $1,838,727,000 after acquiring an additional 1,224,424 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of HubSpot by 352.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 903,559 shares of the software maker’s stock valued at $220,559,000 after purchasing an additional 703,706 shares during the last quarter. Capital World Investors bought a new stake in shares of HubSpot during the fourth quarter valued at approximately $259,930,000. AQR Capital Management LLC increased its holdings in shares of HubSpot by 117.6% in the fourth quarter. AQR Capital Management LLC now owns 1,188,981 shares of the software maker’s stock valued at $477,138,000 after purchasing an additional 642,545 shares in the last quarter. Finally, Pictet Asset Management Holding SA increased its holdings in shares of HubSpot by 32.7% in the fourth quarter. Pictet Asset Management Holding SA now owns 1,935,587 shares of the software maker’s stock valued at $776,714,000 after purchasing an additional 476,740 shares in the last quarter. Institutional investors and hedge funds 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.