HubSpot (HUBS) Upgraded to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of HubSpot (NYSE:HUBS) from a hold rating to a buy rating in a report issued on Tuesday, Zacks.com reports. The brokerage currently has $185.00 price objective on the software maker’s stock.

According to Zacks, “HubSpot provides inbound marketing and sales application over the cloud. The company is benefitting from an expanding international footprint. Robust performance of Hubspot One and Hubspot CRM tools is a positive. We believe portfolio expansion and collaborations bode well. HubSpot’s product portfolio is gaining from integration with Shopify & Facebook, which leverage AI. Moreover, integration of its various in house offerings is likely to improve subscription levels going ahead, consequently bolstering the top line. Adoption of Google cloud bodes well. Notably, shares of the company outperformed the industry in the past year. However, it is to be noted that adverse foreign exchange rate volatility impact is limiting calculated billings growth. Further, mounting operating losses remains a concern.”

HUBS has been the subject of several other research reports. Stifel Nicolaus increased their price target on shares of HubSpot from $160.00 to $185.00 and gave the company a buy rating in a research report on Wednesday, February 13th. Oppenheimer reissued a market perform rating on shares of HubSpot in a research report on Thursday, January 24th. Jefferies Financial Group increased their price target on shares of HubSpot to $200.00 and gave the company a buy rating in a research report on Wednesday, February 13th. Deutsche Bank began coverage on shares of HubSpot in a research report on Friday, January 25th. They set a hold rating and a $150.00 price target for the company. Finally, CIBC reissued a market perform rating on shares of HubSpot in a research report on Thursday, January 24th. Seven research analysts have rated the stock with a hold rating, twelve have issued a buy rating and one has issued a strong buy rating to the company. The stock currently has an average rating of Buy and a consensus price target of $175.69.

Shares of HUBS opened at $166.35 on Tuesday. The firm has a market cap of $6.54 billion, a price-to-earnings ratio of -163.09 and a beta of 1.90. The company has a debt-to-equity ratio of 1.30, a current ratio of 3.01 and a quick ratio of 3.01. HubSpot has a twelve month low of $101.45 and a twelve month high of $180.00.

HubSpot (NYSE:HUBS) last announced its quarterly earnings results on Tuesday, February 12th. The software maker reported $0.37 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.17) by $0.54. The business had revenue of $144.02 million during the quarter, compared to analysts’ expectations of $137.48 million. HubSpot had a negative net margin of 12.44% and a negative return on equity of 17.08%. The firm’s revenue for the quarter was up 35.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.12 EPS. As a group, equities research analysts forecast that HubSpot will post -1.09 EPS for the current fiscal year.

In related news, General Counsel John P. Kelleher sold 389 shares of the stock in a transaction dated Monday, February 4th. The shares were sold at an average price of $160.54, for a total value of $62,450.06. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Brian Halligan sold 25,000 shares of the stock in a transaction dated Wednesday, March 20th. The stock was sold at an average price of $168.73, for a total transaction of $4,218,250.00. Following the completion of the transaction, the chief executive officer now owns 777,390 shares of the company’s stock, valued at $131,169,014.70. The disclosure for this sale can be found here. Insiders sold a total of 87,895 shares of company stock valued at $14,671,594 over the last 90 days. Company insiders own 9.60% of the company’s stock.

Several institutional investors have recently modified their holdings of HUBS. Dimensional Fund Advisors LP increased its stake in shares of HubSpot by 11.4% in the 3rd quarter. Dimensional Fund Advisors LP now owns 61,990 shares of the software maker’s stock worth $9,357,000 after acquiring an additional 6,320 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of HubSpot in the 3rd quarter worth about $228,000. Paloma Partners Management Co increased its stake in shares of HubSpot by 36.9% in the 3rd quarter. Paloma Partners Management Co now owns 3,009 shares of the software maker’s stock worth $454,000 after acquiring an additional 811 shares in the last quarter. Pacer Advisors Inc. bought a new position in shares of HubSpot in the 3rd quarter worth about $331,000. Finally, MetLife Investment Advisors LLC increased its stake in shares of HubSpot by 50.2% in the 3rd quarter. MetLife Investment Advisors LLC now owns 24,742 shares of the software maker’s stock worth $3,735,000 after acquiring an additional 8,264 shares in the last quarter. Institutional investors own 96.78% of the company’s stock.

About HubSpot

HubSpot, Inc provides a cloud-based marketing and sales software platform for businesses in the Americas, Europe, and the Asia Pacific. The company's software platform includes integrated applications, such as customer relationship management, search engine optimization, blogging, Website content management, messaging, chatbots, social media, marketing automation, email, predictive lead scoring, sales productivity, ticketing and helpdesk tools, customer NPS surveys, analytics, and reporting.

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