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Piper Sandler Launches Coverage on HubSpot with $675 Target Price

Investment firm Piper Sandler has begun coverage of HubSpot, Inc. (NYSE:HUBS) with an “overweight” rating and a target price of $675.00. This announcement, made in a research report released on Thursday, highlights the brokerage’s positive outlook for the cloud-based customer relationship management (CRM) platform provider.

Several other financial institutions have also issued insights on HubSpot. On May 9, Goldman Sachs Group reduced its target price for HubSpot from $900.00 to $795.00 while maintaining a “buy” rating. Wells Fargo & Company slightly increased their target from $675.00 to $680.00, also with an “overweight” rating, on August 7. Similarly, KeyCorp lowered its target from $860.00 to $775.00 and kept an “overweight” rating.

On May 9, Morgan Stanley raised its price objective on HubSpot from $659.00 to $752.00, continuing the trend of favorable ratings. In a shift, Wall Street Zen upgraded HubSpot from a “hold” to a “buy” rating on August 9. Currently, one analyst rates the stock as a “Strong Buy,” twenty-seven hold a “Buy” rating, and two analysts suggest a “Hold.” According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $722.93.

HubSpot’s stock recently experienced a decline of 1.6%. The company reported its quarterly earnings on August 6, revealing earnings per share (EPS) of $2.19, surpassing the consensus estimate of $2.12 by $0.07. The firm’s revenue during the quarter reached $760.87 million, exceeding expectations of $739.94 million. This represents a year-over-year revenue growth of 19.4%.

Insider Activity and Institutional Changes

Recent insider trading has also attracted attention. On August 19, Director Brian Halligan sold 8,500 shares at an average price of $449.84, totaling approximately $3.82 million. Following this transaction, Halligan retains 522,435 shares, valued at around $235 million. This sale reflects a decrease of 1.60% in his holdings.

Additionally, CEO Yamini Rangan sold 2,383 shares on July 2 at an average price of $551.79, amounting to about $1.31 million. Rangan now owns 63,918 shares, worth approximately $35 million, marking a 3.59% reduction in her stake.

In the last 90 days, insiders have sold 28,498 shares valued at roughly $14.75 million, with insiders collectively owning 4.00% of the company’s stock.

Institutional investors continue to show interest in HubSpot. Recently, Highview Capital Management LLC increased its stake by 4.5%, now holding 3,011 shares valued at approximately $2.1 million. Mercer Global Advisors Inc. raised its position by 28.5%, acquiring 2,087 shares worth around $1.45 million. Captrust Financial Advisors boosted its holdings by 41.8%, bringing its total to 1,933 shares valued at $1.35 million.

Currently, institutional investors and hedge funds own approximately 90.39% of HubSpot’s stock, indicating strong confidence in the company’s future performance.

About HubSpot

Founded in 2006, HubSpot, Inc. provides a cloud-based CRM platform tailored for businesses across the Americas, Europe, and the Asia Pacific. The platform encompasses various tools, including the Marketing Hub for automation, the Sales Hub for tracking and managing customer interactions, and the Service Hub to facilitate customer connections. HubSpot also offers a Content Management System designed for creating and managing web content.

As HubSpot navigates a competitive landscape, the firm’s recent ratings and insider activities signal a robust interest from both analysts and institutional investors, reinforcing its position as a key player in the CRM sector.

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