Freshworks Inc. (NASDAQ:FRSH) Stock Position Boosted by Gagnon Securities LLC

Key Points

• Gagnon Securities LLC increased its stake in Freshworks Inc. by 7.5%, owning 876,889 shares valued at approximately $12.37 million as of the last reporting period.
• Insider trading activity revealed that directors sold over 206,000 shares of Freshworks stock, reflecting significant decreases in their ownership positions.
• Freshworks reported a 19.6% increase in revenue year-over-year and earnings per share of $0.18 for the last quarter, exceeding analyst expectations.

Gagnon Securities LLC grew its position in Freshworks Inc. (NASDAQ:FRSH - Free Report) by 7.5% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 876,889 shares of the company's stock after acquiring an additional 61,118 shares during the quarter. Freshworks comprises 2.7% of Gagnon Securities LLC's holdings, making the stock its 10th largest position. Gagnon Securities LLC owned 0.29% of Freshworks worth $12,373,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Vanguard Group Inc. lifted its position in 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 buying an additional 1,126,013 shares in the last quarter. Eminence Capital LP purchased a new position in Freshworks during the fourth quarter worth approximately $86,002,000. Geode Capital Management LLC raised its position in Freshworks by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 4,673,600 shares of the company's stock valued at $75,588,000 after purchasing an additional 79,388 shares during the period. TPG GP A LLC raised its position in Freshworks by 28.7% in the fourth quarter. TPG GP A LLC now owns 4,346,855 shares of the company's stock valued at $70,289,000 after purchasing an additional 969,283 shares during the period. Finally, Renaissance Technologies LLC raised its position in Freshworks by 9.4% in the fourth quarter. Renaissance Technologies LLC now owns 3,429,366 shares of the company's stock valued at $55,453,000 after purchasing an additional 293,266 shares during the period. Hedge funds and other institutional investors own 75.58% of the company's stock.

Insider Buying and Selling at Freshworks

In related news, Director Johanna Flower sold 8,000 shares of the firm's 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 $118,400.00. Following the completion of the transaction, the director directly owned 48,094 shares of the company's stock, valued at $711,791.20. This trade represents a 14.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Barry L. Padgett sold 7,558 shares of the firm's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $15.14, for a total value of $114,428.12. Following the completion of the transaction, the director directly owned 32,635 shares of the company's stock, valued at $494,093.90. The trade was a 18.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 206,789 shares of company stock worth $3,207,515. 11.17% of the stock is currently owned by company insiders.

Freshworks Stock Down 1.0%

Shares of NASDAQ FRSH opened at $13.32 on Thursday. The stock has a market cap of $3.93 billion, a PE ratio of -74.00 and a beta of 0.94. Freshworks Inc. has a 52-week low of $10.81 and a 52-week high of $19.77. The business has a 50-day moving average price of $14.70 and a 200 day moving average price of $15.21.

Freshworks (NASDAQ:FRSH - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The company reported $0.18 EPS for the quarter, beating the consensus estimate of $0.12 by $0.06. The firm had revenue of $204.68 million during the quarter, compared to the consensus estimate of $198.85 million. Freshworks had a negative return on equity of 2.56% and a negative net margin of 7.02%. The firm's revenue was up 19.6% compared to the same quarter last year. During the same period in the prior year, the business earned $0.08 EPS. Sell-side analysts anticipate that Freshworks Inc. will post -0.19 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on FRSH shares. Oppenheimer reduced their target price on Freshworks from $24.00 to $19.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 9th. Cantor Fitzgerald upgraded Freshworks to an "overweight" rating and set a $20.00 price objective on the stock in a report on Tuesday, June 3rd. JMP Securities reiterated a "market outperform" rating and issued a $27.00 price objective on shares of Freshworks in a report on Wednesday, April 30th. UBS Group cut their price objective on Freshworks from $22.00 to $19.00 and set a "buy" rating on the stock in a report on Friday, May 2nd. Finally, Wall Street Zen upgraded Freshworks from a "buy" rating to a "strong-buy" rating in a report on Sunday, June 29th. One research analyst has rated the stock with a sell rating, five have given a hold rating, eight have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $20.29.

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.

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