Driehaus Capital Management LLC Acquires New Holdings 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 acquired a new stake in shares of Freshworks Inc. (NASDAQ:FRSH - Free Report) in the first quarter, according to the company in its most recent filing with the SEC. The firm acquired 2,426,030 shares of the company's stock, valued at approximately $34,231,000. Driehaus Capital Management LLC owned approximately 0.82% of Freshworks at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. Trexquant Investment LP grew its position in shares of Freshworks by 59.6% in the 1st quarter. Trexquant Investment LP now owns 1,462,089 shares of the company's stock worth $20,630,000 after buying an additional 546,202 shares during the last quarter. Truvestments Capital LLC purchased a new stake in shares of Freshworks in the 1st quarter valued at $244,000. Ieq Capital LLC boosted its holdings in shares of Freshworks by 15.3% in the 1st quarter. Ieq Capital LLC now owns 1,686,094 shares of the company's stock valued at $23,791,000 after acquiring an additional 223,553 shares during the last quarter. Oak Harvest Investment Services purchased a new stake in shares of Freshworks in the 1st quarter valued at $1,058,000. Finally, StepStone Group LP acquired a new position in shares of Freshworks in the 1st quarter valued at $601,000. Institutional investors own 75.58% of the company's stock.

Wall Street Analysts Forecast Growth

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

Freshworks Stock Performance

FRSH traded down $0.02 during trading on Wednesday, hitting $13.15. The stock had a trading volume of 818,806 shares, compared to its average volume of 3,730,426. The firm has a market capitalization of $3.83 billion, a P/E ratio of -73.05 and a beta of 0.94. The company's 50-day moving average price is $13.90 and its 200 day moving average price is $14.54. Freshworks Inc. has a twelve month low of $10.81 and a twelve month high of $19.77.

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 analysts' consensus estimates of $0.12 by $0.06. The business had revenue of $204.68 million for the quarter, compared to analysts' expectations 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% on a year-over-year basis. During the same period in the prior year, the company posted $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. As a group, equities analysts expect that Freshworks Inc. will post -0.19 earnings per share for the current fiscal year.

Insider Buying and Selling at Freshworks

In other Freshworks news, Director Zachary Nelson sold 8,433 shares of the stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $14.80, for a total value of $124,808.40. Following the completion of the sale, the director owned 38,870 shares of the company's stock, valued at $575,276. This trade represents a 17.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Chairman Rathnagirish Mathrubootham sold 70,997 shares of the stock in a transaction that occurred on Wednesday, June 11th. The shares were sold at an average price of $16.01, for a total transaction of $1,136,661.97. Following the completion of the sale, the chairman directly owned 724,515 shares of the company's stock, valued at $11,599,485.15. This trade represents a 8.92% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 195,932 shares of company stock worth $3,028,489. 11.17% of the stock is currently owned by 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.