Zacks Research Downgrades HubSpot (NYSE:HUBS) to Strong Sell

HubSpot (NYSE:HUBS) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Monday,Zacks.com reports.

A number of other equities research analysts have also issued reports on HUBS. Piper Sandler cut their price target on shares of HubSpot from $675.00 to $590.00 and set an “overweight” rating on the stock in a report on Thursday, November 6th. JPMorgan Chase & Co. cut their target price on HubSpot from $675.00 to $650.00 and set an “overweight” rating on the stock in a research note on Thursday, November 6th. Rothschild & Co Redburn restated a “neutral” rating and set a $450.00 price target (down previously from $610.00) on shares of HubSpot in a report on Monday, November 10th. Wall Street Zen cut HubSpot from a “buy” rating to a “hold” rating in a report on Saturday. Finally, Jefferies Financial Group cut their price objective on HubSpot from $650.00 to $560.00 and set a “buy” rating on the stock in a research report on Thursday, November 6th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, HubSpot currently has a consensus rating of “Moderate Buy” and an average price target of $603.07.

HubSpot Price Performance

HUBS opened at $304.98 on Monday. The stock’s 50 day simple moving average is $375.00 and its 200 day simple moving average is $445.99. The firm has a market cap of $15.98 billion, a price-to-earnings ratio of -3,812.29, a PEG ratio of 7.38 and a beta of 1.46. HubSpot has a 1 year low of $302.00 and a 1 year high of $881.13.

HubSpot (NYSE:HUBS) last released its quarterly earnings data on Thursday, November 6th. The software maker reported $2.66 earnings per share for the quarter, beating analysts’ consensus estimates of $2.58 by $0.08. HubSpot had a positive return on equity of 1.21% and a negative net margin of 0.12%.The firm had revenue of $809.52 million during the quarter, compared to analyst estimates of $786.80 million. During the same quarter in the prior year, the firm posted $2.18 earnings per share. The business’s quarterly revenue was up 20.9% compared to the same quarter last year. As a group, sell-side analysts anticipate that HubSpot will post 1.01 EPS for the current year.

Insider Buying and Selling at HubSpot

In related news, Director Brian Halligan sold 8,500 shares of the company’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $366.99, for a total value of $3,119,415.00. Following the sale, the director directly owned 496,308 shares of the company’s stock, valued at $182,140,072.92. This represents a 1.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders sold 17,235 shares of company stock worth $6,364,276 in the last 90 days. Insiders own 4.00% of the company’s stock.

Institutional Trading of HubSpot

Hedge funds have recently modified their holdings of the business. Vanguard Group Inc. increased its stake in shares of HubSpot by 6.4% in the 3rd quarter. Vanguard Group Inc. now owns 5,736,765 shares of the software maker’s stock worth $2,683,659,000 after acquiring an additional 345,524 shares in the last quarter. State Street Corp grew its holdings in HubSpot by 1.9% in the third quarter. State Street Corp now owns 1,148,895 shares of the software maker’s stock worth $537,453,000 after purchasing an additional 21,358 shares during the period. Geode Capital Management LLC grew its holdings in HubSpot by 4.3% in the second quarter. Geode Capital Management LLC now owns 925,938 shares of the software maker’s stock worth $513,886,000 after purchasing an additional 38,096 shares during the period. Jennison Associates LLC increased its stake in shares of HubSpot by 548.6% during the second quarter. Jennison Associates LLC now owns 794,677 shares of the software maker’s stock valued at $442,341,000 after purchasing an additional 672,158 shares in the last quarter. Finally, AQR Capital Management LLC lifted its holdings in shares of HubSpot by 89.2% during the third quarter. AQR Capital Management LLC now owns 546,436 shares of the software maker’s stock valued at $255,623,000 after purchasing an additional 257,577 shares during the last quarter. Institutional investors 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.