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Why HubSpot Shares Skyrocketed in January


What happened

Shares of HubSpot (NYSE: HUBS) jumped 25.9% last month, according to data provided by S&P Global Market Intelligence , after one analyst initiated coverage of the customer relationship-management company with a bullish rating, while another raised its price target for the company.

So what

Shares of HubSpot were already slowly beginning to climb at the beginning of January, but they were given a boost when Stephens & Co. initiated coverage for the company's stock with an overweight rating and a price target of $191. That price represented a 31% upside at the time.

Rolled up dollar bills standing next to each other.

Image source: Getty Images.

Investors then grew even more bullish about HubSpot's stock later in the month after Bank of America 's Brad Sills raised his price target for the company from $180 to $185 and maintained his buy rating for HubSpot's shares.

These analyst notes may not have been that big of a deal if they were for another tech stock, but HubSpot's share price has been pretty volatile over the past six months and investors seem to be keeping that trend going.

Now what

HubSpot's share price is relatively flat so far this month, but investors may want to strap in for more movement. The company reports its fourth-quarter and fiscal 2018 results on Feb. 12 and management is expecting revenue in the quarter to be in the range of $136.5 million to $137.5 million and full-year sales in the range of $505.5 million to $506.5 million. That could equate to year-over-year sales growth of nearly 29% for the quarter and about 35% for the full year, both at the midpoint of the company's guidance.

HubSpot's share price has already gained about 70% over the past year, and with another strong quarterly report expected next week, investors may soon have even more reason to celebrate.

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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends HubSpot. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Personal Finance , Stocks
Referenced Symbols: HUBS




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