Oppenheimer analyst Koji Ikeda maintained a Hold rating on HubSpot (HUBS) today. The company’s shares closed yesterday at $172, close to its 52-week high of $172.54.
Ikeda said:
“HubSpot reported solid 4Q results and initiated 2019 guidance above consensus. Highlights include: 1) 30%+ growth across: total customers, billings, deferred revenue, subscription billings, subscription revenue, and total revenue; 2) solid operating margin improvements; and 3) record free cash flow generation. On balance, customer retention remains in the “low-to-mid 80s,” which implies an SMB-tilted installed base, and this market lacks a catalyst (i.e., a cyclical pickup) to boost software spending this year. Bottom line: We believe HubSpot is a great business and has a strong management team. However, shares of HUBS are currently trading at a ~2-turn premium to the SaaS industry average (i.e., ~11x vs. ~9x), which implies that much of the success in 2019 may already priced in. Maintain-Perform rating on valuation.”
According to TipRanks.com, Ikeda is a 5-star analyst with an average return of 39.0% and a 97.7% success rate. Ikeda covers the Technology sector, focusing on stocks such as Coupa Software Inc, BlackLine Inc, and SPS Commerce.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for HubSpot with a $177.50 average price target.
See today’s analyst top recommended stocks >>
Based on HubSpot’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $18.66 million. In comparison, last year the company had a GAAP net loss of $11.54 million.
Based on the recent corporate insider activity of 141 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of HUBS in relation to earlier this year. Earlier this month, Brian Halligan, the CEO of HUBS bought 99,958 shares for a total of $152,936.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
HubSpot, Inc. provides cloud-based marketing and sales software platform that enables businesses to deliver an inbound experience. It operates through the following geographical segments: Americas, Europe, and Asia Pacific. The company was founded by Brian Halligan and Dharmesh Shah on April 4, 2005 and is headquartered in Cambridge, MA.
