Eminence Capital LP Lowers Stock Holdings in Freshworks Inc. $FRSH

Key Points

• Eminence Capital LP sold 58,651 shares of Freshworks Inc., reducing its stake by 1.1% to approximately 5.26 million shares valued at $74.2 million.
• Analysts have a consensus rating of "Moderate Buy" for Freshworks with a price target of $20.29, with Piper Sandler increasing their target from $22.00 to $25.00.
• Freshworks reported a 19.6% year-over-year revenue increase for the latest quarter, totaling $204.68 million, and beat earnings expectations with $0.18 EPS against a consensus of $0.12.

Eminence Capital LP reduced its stake in shares of Freshworks Inc. (NASDAQ:FRSH - Free Report) by 1.1% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 5,259,960 shares of the company's stock after selling 58,651 shares during the quarter. Eminence Capital LP owned 1.78% of Freshworks worth $74,218,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. Vanguard Group Inc. grew its stake 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 valued at $369,539,000 after buying an additional 1,126,013 shares during the last quarter. TPG GP A LLC grew its stake in shares of Freshworks by 28.7% during the fourth quarter. TPG GP A LLC now owns 4,346,855 shares of the company's stock valued at $70,289,000 after buying an additional 969,283 shares during the last quarter. Fuller & Thaler Asset Management Inc. grew its stake in shares of Freshworks by 27.9% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 3,951,115 shares of the company's stock valued at $55,750,000 after buying an additional 862,315 shares during the last quarter. Wellington Management Group LLP bought a new position in shares of Freshworks during the first quarter valued at about $48,813,000. Finally, Nuveen LLC bought a new position in shares of Freshworks during the first quarter valued at about $35,129,000. 75.58% of the stock is owned by institutional investors.

Freshworks Trading Up 2.3%

Freshworks stock traded up $0.30 during trading hours on Monday, hitting $13.14. 3,927,008 shares of the stock traded hands, compared to its average volume of 3,744,342. The firm's 50-day moving average price is $13.79 and its two-hundred day moving average price is $14.42. The company has a market cap of $3.83 billion, a PE ratio of -73.00 and a beta of 0.94. Freshworks Inc. has a one year low of $10.81 and a one year high of $19.77.

Freshworks (NASDAQ:FRSH - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The company reported $0.18 earnings per share for the quarter, beating the consensus estimate 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 return on equity of 2.56% and a negative net margin of 7.02%.The business's revenue was up 19.6% on a year-over-year basis. During the same period in the previous year, the firm 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. On average, sell-side analysts expect that Freshworks Inc. will post -0.19 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several analysts recently issued reports on FRSH shares. Piper Sandler raised their target price on Freshworks from $22.00 to $25.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 30th. Wall Street Zen downgraded Freshworks from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 23rd. Finally, Cantor Fitzgerald upgraded Freshworks to an "overweight" rating and set a $20.00 price target on the stock in a report on Tuesday, June 3rd. Eight 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's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $20.29.

Insider Buying and Selling at Freshworks

In other Freshworks news, insider Mika Yamamoto sold 4,289 shares of Freshworks stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $13.18, for a total transaction of $56,529.02. Following the sale, the insider directly owned 533,993 shares of the company's stock, valued at approximately $7,038,027.74. The trade was a 0.80% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Jennifer H. Taylor sold 4,690 shares of Freshworks stock in a transaction that occurred on Monday, August 11th. The shares were sold at an average price of $12.53, for a total value of $58,765.70. Following the sale, the director directly owned 44,218 shares in the company, valued at approximately $554,051.54. The trade was a 9.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 205,268 shares of company stock worth $3,141,652. Insiders own 11.17% of the company's stock.

Freshworks Company 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.