HubSpot (NYSE:HUBS) Trading Down 8.5% – Here’s Why

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

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on HUBS. Raymond James Financial restated an “outperform” rating and issued a $250.00 target price on shares of HubSpot in a report on Friday, May 8th. Citigroup lowered shares of HubSpot from a “buy” rating to a “neutral” rating and lowered their target price for the stock from $321.00 to $230.00 in a report on Friday, May 8th. Mizuho lowered their target price on shares of HubSpot from $300.00 to $260.00 and set an “outperform” rating for the company in a report on Friday, May 8th. Zacks Research lowered HubSpot from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, April 14th. Finally, William Blair lowered HubSpot from an “outperform” rating to a “market perform” rating in a research note on Friday, May 8th. Twenty-two analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $311.00.

HubSpot Stock Performance

The business’s fifty day moving average is $220.74 and its two-hundred day moving average is $287.72. The company has a market cap of $11.43 billion, a P/E ratio of 116.86, a price-to-earnings-growth ratio of 2.87 and a beta of 1.21.

HubSpot (NYSE:HUBS) last announced its quarterly earnings data on Thursday, May 7th. The software maker reported $2.72 earnings per share for the quarter, beating analysts’ consensus estimates 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%. The firm’s revenue for the quarter was up 23.4% on a year-over-year basis. During the same quarter last year, the business 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. Analysts expect that HubSpot, Inc. will post 4.39 EPS for the current fiscal year.

Insider Buying and Selling at HubSpot

In other news, CEO Yamini Rangan bought 2,750 shares of the firm’s stock in a transaction on Tuesday, May 12th. The stock was acquired at an average cost of $189.84 per share, with a total value of $522,060.00. Following the transaction, 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 position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CTO Dharmesh Shah bought 10,000 shares of the firm’s stock in a transaction on Tuesday, May 12th. The shares were purchased at an average cost of $181.37 per share, with a total value of $1,813,700.00. Following the completion of the transaction, the chief technology officer owned 1,295,400 shares in the company, valued at $234,946,698. This represents a 0.78% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders purchased 14,063 shares of company stock worth $2,585,781 and sold 26,207 shares worth $6,233,049. Company insiders own 3.70% of the company’s stock.

Institutional Investors Weigh In On HubSpot

Several large investors have recently modified their holdings of the business. Strategic Advocates LLC bought a new position in shares of HubSpot in the 3rd quarter worth $25,000. Turning Point Benefit Group Inc. bought a new position in shares of HubSpot in the 3rd quarter worth $25,000. Rakuten Securities Inc. raised its position in shares of HubSpot by 783.3% in the 2nd quarter. Rakuten Securities Inc. now owns 53 shares of the software maker’s stock worth $30,000 after acquiring an additional 47 shares in the last quarter. Westside Investment Management Inc. raised its position in shares of HubSpot by 80.5% in the 3rd quarter. Westside Investment Management Inc. now owns 74 shares of the software maker’s stock worth $33,000 after acquiring an additional 33 shares in the last quarter. Finally, Cary Street Partners Investment Advisory LLC bought a new position in shares of HubSpot in the 4th quarter worth $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.