Freshworks Inc. (NASDAQ:FRSH) Stock Now Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• Freshworks has a “Moderate Buy” consensus rating from 16 analysts, with seven buy ratings, one strong buy, and eight holds. The average 12-month price target is $14.46 versus the reported share price of $12.78.
• The company exceeded quarterly expectations, reporting adjusted EPS of $0.17 against a $0.13 consensus estimate and revenue of $237.38 million, up 16% year over year.
• Institutional investors own 75.58% of Freshworks. An insider sold shares under a pre-arranged 10b5-1 plan to cover tax obligations, reducing that executive’s position by 11.94%.

Freshworks Inc. (NASDAQ:FRSH - Get Free Report) has received a consensus rating of "Moderate Buy" from the sixteen ratings firms that are currently covering the firm, Marketbeat.com reports. Eight research analysts have rated the stock with a hold rating, seven have issued a buy rating and one has issued a strong buy rating on the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $14.46.

FRSH has been the topic of several research reports. Weiss Ratings upgraded Freshworks from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday. Wall Street Zen raised shares of Freshworks from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Cantor Fitzgerald increased their target price on Freshworks from $12.00 to $15.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 5th. UBS Group boosted their price objective on Freshworks from $11.00 to $14.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Finally, Guggenheim initiated coverage on shares of Freshworks in a research note on Wednesday, July 22nd. They set a "buy" rating and a $25.00 price objective on the stock.

Insider Buying and Selling

In other Freshworks news, CAO Philippa Lawrence sold 52,767 shares of the business's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $13.25, for a total transaction of $699,162.75. Following the sale, the chief accounting officer directly owned 389,296 shares in the company, valued at approximately $5,158,172. The trade was a 11.94% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 8.54% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Nykredit A S acquired a new stake in shares of Freshworks in the second quarter valued at $28,000. Summit Securities Group LLC grew its holdings in Freshworks by 186.3% during the first quarter. Summit Securities Group LLC now owns 6,043 shares of the company's stock worth $49,000 after acquiring an additional 3,932 shares during the period. Meeder Asset Management Inc. grew its holdings in Freshworks by 164.0% during the first quarter. Meeder Asset Management Inc. now owns 6,156 shares of the company's stock worth $49,000 after acquiring an additional 3,824 shares during the period. Optiver Holding B.V. raised its position in Freshworks by 277.1% in the first quarter. Optiver Holding B.V. now owns 6,211 shares of the company's stock worth $50,000 after acquiring an additional 4,564 shares in the last quarter. Finally, IFP Advisors Inc raised its position in Freshworks by 51.6% in the second quarter. IFP Advisors Inc now owns 8,120 shares of the company's stock worth $82,000 after acquiring an additional 2,765 shares in the last quarter. Institutional investors and hedge funds own 75.58% of the company's stock.

Freshworks Price Performance

NASDAQ FRSH opened at $12.78 on Friday. Freshworks has a 12 month low of $6.79 and a 12 month high of $13.99. The company has a market capitalization of $3.33 billion, a price-to-earnings ratio of 19.97, a price-to-earnings-growth ratio of 8.52 and a beta of 0.90. The company's fifty day moving average price is $12.47 and its two-hundred day moving average price is $10.27.

Freshworks (NASDAQ:FRSH - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $0.17 earnings per share for the quarter, topping the consensus estimate of $0.13 by $0.04. Freshworks had a net margin of 20.49% and a return on equity of 5.52%. The company had revenue of $237.38 million during the quarter, compared to the consensus estimate of $233.62 million. During the same quarter in the previous year, the firm earned $0.18 EPS. The company's revenue was up 16.0% on a year-over-year basis. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. As a group, analysts anticipate that Freshworks will post 0.05 EPS for the current year.

Freshworks Company Profile

Freshworks Inc NASDAQ: FRSH develops cloud-based software designed to help businesses manage customer and employee experiences. Its products are intended for organizations of various sizes and emphasize ease of use, rapid deployment and integration with other business applications.

The company's product portfolio includes Freshdesk for customer support and service management, Freshservice for IT service management, Freshsales for customer relationship management, Freshchat for messaging and conversational engagement, and Freshmarketer for marketing automation and optimization.

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