HubSpot (HUBS) Lowered to “Hold” at Zacks Investment Research

HubSpot (NYSE:HUBS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday, November 28th.

According to Zacks, “Hubspot reported better-than-expected third-quarter 2017 results backed by a growing customer base. The company’s cloud-based inbound marketing and sales applications are gaining widespread adoption. Management is positive about the performance of Hubspot One and Hubspot CRM tools. Hubspot’s recent acquisition of Motion AI is expected to enrich its chatbot offerings further. We note that the stock has outperformed the industry on a year-to-date basis. However, we believe that the $50 per month marketing starter product and sales starter product will conttinue to hurt average subscription revenue (ASR) per customer, at least in the near term.”

A number of other research analysts have also recently weighed in on HUBS. Oppenheimer set a $80.00 price objective on shares of HubSpot and gave the stock a “buy” rating in a research note on Thursday, August 3rd. Canaccord Genuity raised their price objective on shares of HubSpot from $80.00 to $83.00 and gave the stock a “buy” rating in a research note on Thursday, August 3rd. UBS reissued a “buy” rating and set a $84.00 price objective (up from $77.00) on shares of HubSpot in a research note on Thursday, August 3rd. Cowen restated a “market perform” rating and set a $69.00 target price (up previously from $63.00) on shares of HubSpot in a research report on Friday, August 4th. Finally, Summit Redstone restated a “hold” rating on shares of HubSpot in a research report on Thursday, August 3rd. Three equities research analysts have rated the stock with a hold rating, seventeen have issued a buy rating and one has given a strong buy rating to the company. The company presently has a consensus rating of “Buy” and an average price target of $84.82.

Shares of HubSpot (NYSE HUBS) traded up $0.15 during trading on Tuesday, reaching $82.85. 500,333 shares of the company’s stock were exchanged, compared to its average volume of 710,620. The company has a debt-to-equity ratio of 1.41, a current ratio of 3.55 and a quick ratio of 3.55. HubSpot has a 12 month low of $44.90 and a 12 month high of $88.50.

HubSpot (NYSE:HUBS) last issued its quarterly earnings data on Wednesday, November 1st. The software maker reported $0.03 earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.12) by $0.15. HubSpot had a negative net margin of 12.16% and a negative return on equity of 21.93%. The business had revenue of $97.73 million during the quarter, compared to analysts’ expectations of $96.50 million. During the same period last year, the company posted ($0.05) EPS. The company’s revenue was up 38.4% on a year-over-year basis. sell-side analysts predict that HubSpot will post -0.99 earnings per share for the current year.

In other HubSpot news, insider Dharmesh Shah sold 20,000 shares of HubSpot stock in a transaction on Thursday, September 21st. The shares were sold at an average price of $73.60, for a total value of $1,472,000.00. Following the transaction, the insider now owns 1,716,316 shares in the company, valued at approximately $126,320,857.60. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO John Kinzer sold 15,000 shares of HubSpot stock in a transaction on Wednesday, November 8th. The shares were sold at an average price of $83.39, for a total transaction of $1,250,850.00. Following the completion of the transaction, the chief financial officer now owns 87,786 shares in the company, valued at approximately $7,320,474.54. The disclosure for this sale can be found here. In the last quarter, insiders sold 72,000 shares of company stock worth $5,801,530. 12.10% of the stock is owned by company insiders.

Several institutional investors and hedge funds have recently made changes to their positions in the business. Granahan Investment Management Inc. MA lifted its holdings in shares of HubSpot by 15.7% during the 3rd quarter. Granahan Investment Management Inc. MA now owns 142,700 shares of the software maker’s stock valued at $11,994,000 after acquiring an additional 19,320 shares in the last quarter. First Allied Advisory Services Inc. acquired a new position in shares of HubSpot during the 3rd quarter valued at $2,658,000. Nicholas Investment Partners LP lifted its holdings in shares of HubSpot by 34.8% during the 3rd quarter. Nicholas Investment Partners LP now owns 51,760 shares of the software maker’s stock valued at $4,350,000 after acquiring an additional 13,365 shares in the last quarter. Invictus RG acquired a new position in shares of HubSpot during the 3rd quarter valued at $287,000. Finally, Telemark Asset Management LLC lifted its holdings in shares of HubSpot by 500.0% during the 3rd quarter. Telemark Asset Management LLC now owns 120,000 shares of the software maker’s stock valued at $10,086,000 after acquiring an additional 100,000 shares in the last quarter. Institutional investors own 93.23% of the company’s stock.

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About HubSpot

HubSpot, Inc (HubSpot) provides a cloud-based marketing and sales software platform. The Company’s software platform features integrated applications to help businesses attract visitors to their Websites, convert visitors into leads, close leads into customers and delight customers so that they become promoters of those businesses.

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