Gagnon Securities LLC Boosts Stock Holdings in Freshworks Inc. $FRSH

Key Points

• Gagnon Securities LLC increased its holdings in Freshworks Inc. by 5.4% in the second quarter, owning 924,590 shares valued at approximately $13.8 million, making it the company's 12th largest position.
• Freshworks reported a 19.6% year-over-year revenue increase for the latest quarter, with earnings per share of $0.18, surpassing the consensus estimate of $0.12.
• The stock price of Freshworks currently sits at $11.18, with a market cap of $3.26 billion, showing a decline of 1.1% recently.

Gagnon Securities LLC grew its position in shares of Freshworks Inc. (NASDAQ:FRSH - Free Report) by 5.4% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 924,590 shares of the company's stock after acquiring an additional 47,701 shares during the period. Freshworks comprises 2.8% of Gagnon Securities LLC's portfolio, making the stock its 12th largest position. Gagnon Securities LLC owned 0.31% of Freshworks worth $13,786,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of FRSH. FNY Investment Advisers LLC bought a new position in shares of Freshworks during the first quarter valued at about $70,000. DekaBank Deutsche Girozentrale raised its stake in shares of Freshworks by 91.2% during the first quarter. DekaBank Deutsche Girozentrale now owns 5,899 shares of the company's stock valued at $84,000 after acquiring an additional 2,814 shares during the last quarter. Liberty Mutual Group Asset Management Inc. bought a new position in shares of Freshworks during the first quarter valued at about $106,000. US Bancorp DE raised its stake in shares of Freshworks by 671.4% during the first quarter. US Bancorp DE now owns 8,331 shares of the company's stock valued at $118,000 after acquiring an additional 7,251 shares during the last quarter. Finally, GAMMA Investing LLC raised its stake in Freshworks by 2,639.5% in the first quarter. GAMMA Investing LLC now owns 9,369 shares of the company's stock worth $132,000 after buying an additional 9,027 shares in the last quarter. 75.58% of the stock is owned by institutional investors.

Freshworks Stock Down 1.1%

NASDAQ:FRSH opened at $11.18 on Wednesday. The company's 50 day moving average price is $12.84 and its 200-day moving average price is $13.89. Freshworks Inc. has a 52 week low of $10.81 and a 52 week high of $19.77. The stock has a market cap of $3.26 billion, a price-to-earnings ratio of -62.11 and a beta of 0.91.

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

Insider Activity at Freshworks

In related news, Director Jennifer H. Taylor sold 4,685 shares of the firm's stock in a transaction that occurred on Thursday, September 11th. The shares were sold at an average price of $12.96, for a total value of $60,717.60. Following the sale, the director owned 44,218 shares in the company, valued at approximately $573,065.28. This trade represents a 9.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CAO Philippa Lawrence sold 2,590 shares of the firm's stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $12.53, for a total transaction of $32,452.70. Following the completion of the sale, the chief accounting officer owned 415,949 shares in the company, valued at $5,211,840.97. This represents a 0.62% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 46,014 shares of company stock worth $601,475. Company insiders own 11.17% of the company's stock.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the stock. JMP Securities reissued a "market outperform" rating and issued a $27.00 price target on shares of Freshworks in a research note on Friday, September 12th. Morgan Stanley decreased their price target on shares of Freshworks from $18.00 to $16.00 and set an "equal weight" rating for the company in a research note on Friday, September 12th. Weiss Ratings reissued a "sell (e+)" rating on shares of Freshworks in a research note on Saturday, September 27th. Wall Street Zen downgraded shares of Freshworks from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 23rd. Finally, Zacks Research raised shares of Freshworks from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 29th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $20.07.

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.

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