Cantor Fitzgerald Expects Higher Earnings for Freshworks

Key Points

• Cantor Fitzgerald has raised its FY2025 earnings per share (EPS) estimate for Freshworks from ($0.16) to ($0.12), maintaining an "Overweight" rating with a price target of $20.00.
• Freshworks reported a quarterly earnings per share of $0.18, exceeding expectations by $0.06, and achieving a revenue of $204.68 million, which was above anticipated figures.
• Insider activity was notable, with two directors selling shares totaling approximately $185,000, reflecting a decrease in their respective positions.

Freshworks Inc. (NASDAQ:FRSH - Free Report) - Stock analysts at Cantor Fitzgerald lifted their FY2025 EPS estimates for shares of Freshworks in a report issued on Wednesday, July 30th. Cantor Fitzgerald analyst M. Vanvliet now expects that the company will post earnings of ($0.12) per share for the year, up from their prior estimate of ($0.16). Cantor Fitzgerald currently has a "Overweight" rating and a $20.00 target price on the stock. The consensus estimate for Freshworks' current full-year earnings is ($0.19) per share. Cantor Fitzgerald also issued estimates for Freshworks' FY2026 earnings at ($0.03) EPS.

Freshworks (NASDAQ:FRSH - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The company reported $0.18 earnings per share for the quarter, topping the consensus estimate of $0.12 by $0.06. Freshworks had a negative net margin of 7.02% and a negative return on equity of 2.56%. The business had revenue of $204.68 million during the quarter, compared to the consensus estimate of $198.85 million. During the same period in the previous year, the firm posted $0.08 earnings per share. The firm's revenue for the quarter was up 19.6% on a year-over-year basis.

Several other equities research analysts have also recently weighed in on the company. Oppenheimer dropped their target price on Freshworks from $24.00 to $19.00 and set an "outperform" rating for the company in a report on Wednesday, April 9th. Piper Sandler set a $25.00 price objective on Freshworks and gave the company an "overweight" rating in a research note on Wednesday. JMP Securities reaffirmed a "market outperform" rating and issued a $27.00 target price on shares of Freshworks in a research note on Wednesday, April 30th. UBS Group lowered their price target on shares of Freshworks from $22.00 to $19.00 and set a "buy" rating for the company in a report on Friday, May 2nd. Finally, Wall Street Zen raised shares of Freshworks from a "buy" rating to a "strong-buy" rating in a report on Sunday, June 29th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating, eight have issued a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, Freshworks currently has a consensus rating of "Moderate Buy" and an average price target of $20.29.

Freshworks Stock Down 2.4%

Shares of FRSH traded down $0.31 during trading hours on Friday, hitting $12.68. The company had a trading volume of 7,737,112 shares, compared to its average volume of 5,189,084. Freshworks has a 52-week low of $10.81 and a 52-week high of $19.77. The stock's 50 day moving average price is $14.79 and its 200 day moving average price is $15.28. The firm has a market cap of $3.74 billion, a P/E ratio of -70.44 and a beta of 0.94.

Institutional Investors Weigh In On Freshworks

Several hedge funds have recently made changes to their positions in the company. National Bank of Canada FI lifted its position in Freshworks by 1,385.8% during the fourth quarter. National Bank of Canada FI now owns 3,967 shares of the company's stock valued at $64,000 after buying an additional 3,700 shares during the period. FNY Investment Advisers LLC bought a new position in shares of Freshworks in the 1st quarter worth about $70,000. Covestor Ltd lifted its position in Freshworks by 30.2% during the 4th quarter. Covestor Ltd now owns 4,686 shares of the company's stock valued at $76,000 after acquiring an additional 1,087 shares during the period. DekaBank Deutsche Girozentrale boosted its stake in Freshworks by 91.2% during the first quarter. DekaBank Deutsche Girozentrale now owns 5,899 shares of the company's stock worth $84,000 after acquiring an additional 2,814 shares in the last quarter. Finally, Quarry LP boosted its stake in Freshworks by 47.8% during the fourth quarter. Quarry LP now owns 5,410 shares of the company's stock worth $87,000 after acquiring an additional 1,750 shares in the last quarter. 75.58% of the stock is currently owned by institutional investors.

Insider Activity

In other Freshworks news, Director Johanna Flower sold 8,000 shares of Freshworks stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $14.80, for a total transaction of $118,400.00. Following the sale, the director directly owned 48,094 shares of the company's stock, valued at approximately $711,791.20. The trade was a 14.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Zachary Nelson sold 8,433 shares of the stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $14.80, for a total value of $124,808.40. Following the completion of the transaction, the director directly owned 38,870 shares of the company's stock, valued at $575,276. This represents a 17.83% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 197,642 shares of company stock worth $3,095,380. 11.17% of the stock is owned by company insiders.

About Freshworks

Freshworks Inc, a software development company, provides software-as-a-service products worldwide. It offers Freshworks Customer Service Suite, which provides automated, personalized self-service on various channels, including web, chat, mobile messaging, email, and social; Freshdesk, a ticketing-centric customer service solution; Freshsuccess, a customer success solution; and Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels.