Hub (US:HUBG) TMX Newsfile·2026-02-23 05:13Core Insights - Hub Group, Inc. is under investigation for potential violations of federal securities laws following a significant accounting error that has impacted investor confidence and stock performance [1][3]. Stock Performance - Hub Group's stock reached a 52-week high of $48.96 on February 3, 2026, but plummeted to around $37 just three days later, resulting in a loss of approximately $12 per share [2]. - For an investor holding 10,000 shares, this decline translates to an estimated $120,000 decrease in portfolio value [2]. Analyst Reactions - Stifel downgraded Hub Group from a Buy rating to Sell, slashing its price target from $52 to $27, a 48% reduction [3]. - Baird also downgraded its rating from Outperform to Neutral, reducing its target from $47 to $29, a 38% cut [3]. - Both downgrades were issued on February 6, contributing to increased selling pressure on the stock [3]. Financial Results - Despite reporting earnings per share of $0.45 against a consensus estimate of $0.44 and revenue exceeding estimates, the positive results were overshadowed by the disclosure of an accounting restatement affecting three prior quarters and an estimated $77 million in understated costs [4]. - The market's reaction, with a 23% decline in stock price, indicates that the accounting issue is viewed as more significant than the quarterly earnings performance [4].