Driehaus Capital Management LLC Makes New $34.23 Million Investment in Freshworks Inc. $FRSH

Key Points

• Driehaus Capital Management LLC invested approximately $34.23 million in Freshworks Inc., acquiring 2,426,030 shares, which represents about 0.82% ownership of the company.
• Freshworks has seen a positive revenue trend, reporting a 19.6% year-over-year increase to $204.68 million for the last quarter, surpassing analysts' expectations.
• A consensus of analysts currently rates Freshworks as a "Moderate Buy" with a target price averaging $20.29, despite some fluctuations in ratings and price targets from various research firms.

Driehaus Capital Management LLC bought a new stake in Freshworks Inc. (NASDAQ:FRSH - Free Report) during the first quarter, according to its most recent disclosure with the SEC. The institutional investor bought 2,426,030 shares of the company's stock, valued at approximately $34,231,000. Driehaus Capital Management LLC owned 0.82% of Freshworks as of its most recent filing with the SEC.

Several other hedge funds have also recently bought and sold shares of FRSH. Eminence Capital LP acquired a new stake in Freshworks in the fourth quarter valued at approximately $86,002,000. Wellington Management Group LLP acquired a new position in Freshworks in the first quarter valued at $48,813,000. Nuveen LLC bought a new stake in Freshworks in the first quarter valued at $35,129,000. D. E. Shaw & Co. Inc. increased its stake in Freshworks by 625.6% in the fourth quarter. D. E. Shaw & Co. Inc. now owns 1,631,949 shares of the company's stock valued at $26,389,000 after purchasing an additional 1,407,033 shares in the last quarter. Finally, Vanguard Group Inc. increased its position in shares of Freshworks by 4.5% during the first quarter. Vanguard Group Inc. now owns 26,189,892 shares of the company's stock worth $369,539,000 after acquiring an additional 1,126,013 shares in the last quarter. 75.58% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities research analysts have recently commented on FRSH shares. Piper Sandler boosted their target price on shares of Freshworks from $22.00 to $25.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 30th. Cantor Fitzgerald upgraded shares of Freshworks to an "overweight" rating and set a $20.00 price target on the stock in a report on Tuesday, June 3rd. Finally, Wall Street Zen cut shares of Freshworks from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 23rd. Eight equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $20.29.

Freshworks Stock Performance

Freshworks stock traded down $0.31 during midday trading on Tuesday, reaching $13.16. 4,048,495 shares of the stock were exchanged, compared to its average volume of 3,741,665. The company's fifty day moving average is $13.93 and its 200-day moving average is $14.55. The firm has a market cap of $3.84 billion, a PE ratio of -73.11 and a beta of 0.94. Freshworks Inc. has a 52 week low of $10.81 and a 52 week high of $19.77.

Freshworks (NASDAQ:FRSH - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The company reported $0.18 EPS for the quarter, topping analysts' consensus estimates of $0.12 by $0.06. The firm had revenue of $204.68 million for the quarter, compared to analyst estimates of $198.85 million. Freshworks had a negative net margin of 7.02% and a negative return on equity of 2.56%. The business's revenue for the quarter was up 19.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.08 EPS. Freshworks has set its FY 2025 guidance at 0.560-0.580 EPS. Q3 2025 guidance at 0.120-0.140 EPS. On average, sell-side analysts anticipate that Freshworks Inc. will post -0.19 earnings per share for the current fiscal year.

Insider Transactions at Freshworks

In other news, Director Zachary Nelson sold 8,432 shares of the firm's stock in a transaction dated Monday, August 4th. The shares were sold at an average price of $13.01, for a total value of $109,700.32. Following the completion of the sale, the director directly owned 38,870 shares of the company's stock, valued at approximately $505,698.70. This trade represents a 17.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Johanna Flower sold 8,000 shares of Freshworks stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $14.80, for a total transaction of $118,400.00. Following the transaction, the director directly owned 48,094 shares of the company's stock, valued at approximately $711,791.20. This trade represents a 14.26% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 196,137 shares of company stock worth $3,035,364. 11.17% of the stock is owned by corporate insiders.

Freshworks Profile

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.