Vanguard Group Inc. Purchases 1,126,013 Shares of Freshworks Inc. $FRSH

Key Points

• Vanguard Group Inc. increased its stake in Freshworks Inc. by 4.5%, acquiring an additional 1,126,013 shares, which brought its total ownership to 26,189,892 shares, representing 8.69% of the company.
• Freshworks reported a 19.6% year-over-year revenue increase to $204.68 million in its latest earnings report, exceeding analysts' expectations of $198.85 million.
• Wall Street analysts have mostly favorable ratings on Freshworks, with a consensus rating of "Moderate Buy" and an average target price of $20.29 for the stock.

Vanguard Group Inc. raised its position in Freshworks Inc. (NASDAQ:FRSH - Free Report) by 4.5% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 26,189,892 shares of the company's stock after buying an additional 1,126,013 shares during the quarter. Vanguard Group Inc. owned 8.69% of Freshworks worth $369,539,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in FRSH. FNY Investment Advisers LLC acquired a new position in Freshworks in the 1st quarter valued at $70,000. DekaBank Deutsche Girozentrale grew its holdings in Freshworks by 91.2% in the 1st quarter. DekaBank Deutsche Girozentrale now owns 5,899 shares of the company's stock valued at $84,000 after buying an additional 2,814 shares in the last quarter. Quarry LP grew its holdings in Freshworks by 47.8% in the 4th quarter. Quarry LP now owns 5,410 shares of the company's stock valued at $87,000 after buying an additional 1,750 shares in the last quarter. Liberty Mutual Group Asset Management Inc. acquired a new position in Freshworks in the 1st quarter valued at $106,000. Finally, US Bancorp DE grew its holdings in Freshworks by 671.4% in the 1st quarter. US Bancorp DE now owns 8,331 shares of the company's stock valued at $118,000 after buying an additional 7,251 shares in the last quarter. 75.58% of the stock is owned by institutional investors and hedge funds.

Freshworks Price Performance

NASDAQ:FRSH traded up $0.09 during trading hours on Thursday, hitting $13.20. The company's stock had a trading volume of 3,384,599 shares, compared to its average volume of 6,117,711. The stock has a fifty day simple moving average of $14.13 and a 200-day simple moving average of $14.81. The company has a market capitalization of $3.85 billion, a P/E ratio of -73.33 and a beta of 0.94. Freshworks Inc. has a twelve month low of $10.81 and a twelve month high of $19.77.

Freshworks (NASDAQ:FRSH - Get Free Report) last released 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 analyst estimates of $198.85 million. Freshworks had a negative return on equity of 2.56% and a negative net margin of 7.02%.Freshworks's revenue was up 19.6% compared to the same quarter last year. During the same period last year, the firm posted $0.08 earnings per share. Freshworks has set its FY 2025 guidance at 0.560-0.580 EPS. Q3 2025 guidance at 0.120-0.140 EPS. On average, equities analysts predict that Freshworks Inc. will post -0.19 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on FRSH shares. Wells Fargo & Company increased their target price on Freshworks from $11.00 to $12.00 and gave the stock an "underweight" rating in a report on Wednesday, April 30th. JMP Securities reissued a "market outperform" rating and set a $27.00 target price on shares of Freshworks in a report on Wednesday, April 30th. Piper Sandler increased their target price on Freshworks from $22.00 to $25.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Wall Street Zen raised shares of Freshworks from a "buy" rating to a "strong-buy" rating in a report on Sunday, June 29th. Finally, Scotiabank upped their price target on shares of Freshworks from $14.00 to $18.00 and gave the stock a "sector perform" rating in a report on Wednesday, April 30th. Eight investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Freshworks currently has an average rating of "Moderate Buy" and a consensus target price of $20.29.

Insiders Place Their Bets

In related news, Director Zachary Nelson sold 8,432 shares of the firm's stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $13.01, for a total value of $109,700.32. Following the sale, the director directly owned 38,870 shares of the company's stock, valued at $505,698.70. This trade represents a 17.83% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Barry L. Padgett sold 7,558 shares of the firm's stock in a transaction dated 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 sale, the director directly owned 32,635 shares in the company, valued at $494,093.90. This trade represents a 18.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 200,491 shares of company stock valued at $3,101,115 over the last ninety days. 11.17% of the stock is owned by insiders.

Freshworks 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.