Wells Fargo & Company Downgrades HubSpot (NYSE:HUBS) to Hold

HubSpot (NYSE:HUBS) was downgraded by Wells Fargo & Company from a “strong-buy” rating to a “hold” rating in a report released on Monday,Zacks.com reports.

Several other research analysts have also issued reports on HUBS. UBS Group reiterated a “neutral” rating on shares of HubSpot in a research note on Wednesday, July 15th. BMO Capital Markets dropped their price objective 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. Bank of America reiterated an “underperform” rating and set a $180.00 target price (down from $300.00) on shares of HubSpot in a report on Friday, May 8th. Barclays dropped their price target on HubSpot from $300.00 to $270.00 and set an “overweight” rating on the stock in a research report on Monday, May 11th. Finally, BTIG Research reissued a “buy” rating and issued a $300.00 price target on shares of HubSpot in a research report on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, HubSpot has an average rating of “Moderate Buy” and an average price target of $308.32.

HubSpot Price Performance

NYSE:HUBS opened at $218.40 on Monday. HubSpot has a 1-year low of $169.63 and a 1-year high of $568.16. The company has a market capitalization of $11.19 billion, a price-to-earnings ratio of 114.35, a PEG ratio of 2.52 and a beta of 1.22. The business has a 50 day moving average of $200.10 and a 200 day moving average of $241.47.

HubSpot (NYSE:HUBS) last issued its quarterly earnings data on Thursday, May 7th. The software maker reported $2.72 EPS for the quarter, topping the consensus estimate of $2.47 by $0.25. HubSpot had a net margin of 3.04% and a return on equity of 5.66%. The business had revenue of $881.00 million during the quarter, compared to analyst estimates of $863.32 million. During the same period last year, the business posted $1.84 earnings per share. HubSpot’s quarterly 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, sell-side analysts anticipate that HubSpot will post 4.39 EPS for the current year.

Insider Activity at HubSpot

In other news, Director Lorrie M. Norrington acquired 1,313 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The stock was bought at an average cost of $190.42 per share, for a total transaction of $250,021.46. Following the acquisition, the director directly owned 2,838 shares in the company, valued at approximately $540,411.96. The trade was a 86.10% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Erika Ashley Fisher sold 915 shares of the company’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $236.66, for a total value of $216,543.90. Following the completion of 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 ninety days, insiders have purchased 14,063 shares of company stock valued at $2,585,781 and have sold 17,915 shares valued at $3,654,114. 3.70% of the stock is currently owned by insiders.

Institutional Investors Weigh In On HubSpot

Institutional investors have recently bought and sold shares of the business. Price T Rowe Associates Inc. MD boosted its position in HubSpot by 36.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,581,922 shares of the software maker’s stock valued at $1,838,727,000 after buying an additional 1,224,424 shares during the period. Arrowstreet Capital Limited Partnership raised 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 acquiring an additional 703,706 shares in 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 boosted 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 during the period. Finally, Pictet Asset Management Holding SA boosted 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 during the period. Hedge funds and other 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.