Pacer Advisors Inc. Invests $8.56 Million in Freshworks Inc. $FRSH

Key Points

• Pacer Advisors acquired 1.07 million Freshworks shares worth approximately $8.56 million, giving it a 0.39% stake. Institutional investors collectively own 75.58% of the company.
• Freshworks beat quarterly estimates with adjusted EPS of $0.17 and revenue of $237.4 million, up 16% year over year. The company also reported its first GAAP-profitable quarter of 2026.
• Freshworks raised its full-year 2026 EPS guidance to $0.66–$0.68, above the $0.50 analyst consensus, while the analyst consensus rating remains “Hold” with an average price target of $13.25.

Pacer Advisors Inc. 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 disclosure with the Securities & Exchange Commission. The institutional investor acquired 1,066,148 shares of the company's stock, valued at approximately $8,561,000. Pacer Advisors Inc. owned about 0.39% of Freshworks as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also made changes to their positions in the company. Tudor Investment Corp ET AL acquired a new position in Freshworks in the 3rd quarter valued at approximately $1,984,000. Healthcare of Ontario Pension Plan Trust Fund lifted its position in shares of Freshworks by 403.4% in the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,444,124 shares of the company's stock worth $11,596,000 after acquiring an additional 1,157,277 shares during the period. Principal Financial Group Inc. grew its holdings in shares of Freshworks by 80.7% during the 1st quarter. Principal Financial Group Inc. now owns 765,475 shares of the company's stock worth $6,147,000 after purchasing an additional 341,947 shares in the last quarter. Vanguard Group Inc. grew its holdings in shares of Freshworks by 3.5% during the 4th quarter. Vanguard Group Inc. now owns 27,240,469 shares of the company's stock worth $333,696,000 after purchasing an additional 922,549 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its position in shares of Freshworks by 12.8% during the first quarter. Bank of New York Mellon Corp now owns 1,168,094 shares of the company's stock valued at $9,380,000 after purchasing an additional 132,443 shares during the period. Institutional investors own 75.58% of the company's stock.

Insider Activity

In related news, Director Jennifer H. Taylor sold 6,618 shares of the stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $10.44, for a total transaction of $69,091.92. Following the completion of the sale, the director owned 62,673 shares in the company, valued at $654,306.12. This trade represents a 9.55% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Philippa Lawrence sold 3,470 shares of Freshworks stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $10.13, for a total transaction of $35,151.10. Following the transaction, the chief accounting officer directly owned 456,144 shares of the company's stock, valued at $4,620,738.72. This represents a 0.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 27,236 shares of company stock worth $270,331. Corporate insiders own 8.54% of the company's stock.

Freshworks News Roundup

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Quarterly earnings and revenue beat estimates. Freshworks reported adjusted EPS of $0.17, exceeding the $0.13 consensus estimate, while revenue reached $237.4 million versus expectations of $233.6 million. Revenue increased 16% year over year. Freshworks Inc. Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Freshworks achieved GAAP profitability. The company generated $3.2 million in GAAP net income, its first GAAP-profitable quarter of 2026, and reported an 8th consecutive quarter meeting the Rule of 40 growth-and-profitability benchmark. Freshworks Reports Record Second Quarter 2026 Results
• Positive Sentiment: Full-year earnings guidance was raised above analyst expectations. Freshworks now expects fiscal 2026 EPS of $0.66-$0.68, compared with the $0.50 consensus estimate, and revenue of $963.5 million-$966.5 million versus the $961.2 million consensus. Third-quarter EPS guidance of $0.18 also exceeded the $0.15 estimate, while revenue guidance was broadly in line with expectations.
• Neutral Sentiment: Profit growth remains mixed year over year. Second-quarter EPS declined from $0.18 a year earlier to $0.17, but the decline was more than offset by the earnings beat, accelerating revenue and improved GAAP profitability.

Freshworks Price Performance

Freshworks stock opened at $12.04 on Wednesday. The company has a market capitalization of $3.33 billion, a PE ratio of 19.42 and a beta of 0.86. Freshworks Inc. has a one year low of $6.79 and a one year high of $14.06. The business has a 50 day simple moving average of $10.09 and a 200 day simple moving average of $9.18.

Freshworks (NASDAQ:FRSH - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $0.17 earnings per share for the quarter, beating analysts' consensus estimates of $0.13 by $0.04. Freshworks had a return on equity of 4.27% and a net margin of 20.69%.The firm had revenue of $237.38 million for the quarter, compared to analysts' expectations of $233.62 million. During the same period in the prior year, the business posted $0.18 earnings per share. The business's revenue was up 16.0% compared to the same quarter last year. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. Equities analysts anticipate that Freshworks Inc. will post -0.02 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the company. Wall Street Zen lowered Freshworks from a "buy" rating to a "hold" rating in a research note on Saturday, May 9th. Weiss Ratings downgraded shares of Freshworks from a "sell (d+)" rating to a "sell (d)" rating in a research note on Thursday, May 7th. Zacks Research lowered shares of Freshworks from a "strong-buy" rating to a "hold" rating in a report on Friday, July 10th. Morgan Stanley dropped their price objective on shares of Freshworks from $15.00 to $13.00 and set an "equal weight" rating for the company in a research note on Monday, May 11th. Finally, Guggenheim initiated coverage on shares of Freshworks in a report on Wednesday, July 22nd. They set a "buy" rating and a $25.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $13.25.

Freshworks Company Profile

Freshworks, Inc is a global provider of cloud-based customer engagement software designed to help businesses streamline customer support, sales, marketing, and IT service operations. The company's integrated suite of solutions enables organizations of all sizes to deliver seamless experiences across multiple channels, including email, chat, phone, and social media. Freshworks' platform is built on modern, user-friendly interfaces and offers native automation, AI-powered insights, and analytics to improve efficiency and customer satisfaction.

The company's flagship product, Freshdesk, serves as a helpdesk solution for customer support teams, while Freshservice addresses IT service management needs.

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