Freshworks Inc. $FRSH Shares Sold by Generation Investment Management LLP

Key Points

• Generation Investment Management LLP has reduced its stake in Freshworks Inc. by 11.9%, selling 70,297 shares and retaining 522,591 shares worth approximately $7.37 million.
• Freshworks reported a positive earnings per share of $0.18 for the last quarter, surpassing expectations, and its quarterly revenue increased by 19.6% year-over-year to $204.68 million.
• Institutional investors hold 75.58% of Freshworks' stock, with significant investments and increases from several hedge funds observed in the first quarter.

Generation Investment Management LLP reduced its position in Freshworks Inc. (NASDAQ:FRSH - Free Report) by 11.9% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 522,591 shares of the company's stock after selling 70,297 shares during the quarter. Generation Investment Management LLP owned approximately 0.18% of Freshworks worth $7,374,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also added to or reduced their stakes in FRSH. Vanguard Group Inc. lifted its stake in shares of Freshworks by 4.5% in the 1st quarter. Vanguard Group Inc. now owns 26,189,892 shares of the company's stock valued at $369,539,000 after acquiring an additional 1,126,013 shares during the last quarter. Eminence Capital LP purchased a new stake in shares of Freshworks in the 4th quarter worth approximately $86,002,000. TPG GP A LLC lifted its stake in Freshworks by 28.7% during the 4th quarter. TPG GP A LLC now owns 4,346,855 shares of the company's stock valued at $70,289,000 after acquiring an additional 969,283 shares during the period. Fuller & Thaler Asset Management Inc. boosted its stake in shares of Freshworks by 27.9% in the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 3,951,115 shares of the company's stock worth $55,750,000 after buying an additional 862,315 shares during the last quarter. Finally, Wellington Management Group LLP purchased a new position in shares of Freshworks in the 1st quarter worth $48,813,000. 75.58% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

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

Freshworks Price Performance

NASDAQ:FRSH traded down $0.17 during mid-day trading on Friday, hitting $12.84. The company's stock had a trading volume of 4,705,218 shares, compared to its average volume of 3,978,615. The business's fifty day moving average is $13.79 and its two-hundred day moving average is $14.47. Freshworks Inc. has a 1 year low of $10.81 and a 1 year high of $19.77. The stock has a market cap of $3.74 billion, a price-to-earnings ratio of -71.33 and a beta of 0.94.

Freshworks (NASDAQ:FRSH - Get Free Report) last posted 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 business had revenue of $204.68 million for the quarter, compared to analyst estimates of $198.85 million. During the same period in the prior year, the company posted $0.08 EPS. The company's revenue for the quarter 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. Analysts anticipate that Freshworks Inc. will post -0.19 EPS for the current fiscal year.

Insider Activity

In related news, Director Barry L. Padgett sold 7,558 shares of the company's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $15.14, for a total transaction of $114,428.12. Following the completion of the transaction, the director owned 32,635 shares in the company, valued at $494,093.90. This represents a 18.80% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Chairman Rathnagirish Mathrubootham sold 70,997 shares of the stock in a transaction dated 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 owned 724,515 shares of the company's stock, valued at approximately $11,599,485.15. The trade was a 8.92% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 208,654 shares of company stock worth $3,195,828. Company insiders own 11.17% of the company's stock.

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.