Wellington Management Group LLP Purchases Shares of 3,459,434 Freshworks Inc. $FRSH

Key Points

• Wellington Management Group LLP invested approximately $48.81 million in Freshworks Inc., acquiring over 3.4 million shares and holding about 1.17% of the company.
• Freshworks received several analyst upgrades, with a price target range between $12.00 and $27.00, currently averaging $20.29, indicating a moderate buy sentiment.
• Company insiders sold a total of 200,491 shares valued at over $3.1 million in the last 90 days, representing 11.17% of the stock currently owned by insiders.

Wellington Management Group LLP bought a new stake in shares of Freshworks Inc. (NASDAQ:FRSH - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 3,459,434 shares of the company's stock, valued at approximately $48,813,000. Wellington Management Group LLP owned about 1.17% of Freshworks as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also recently modified their holdings of the company. Principal Financial Group Inc. lifted its holdings in Freshworks by 2,786.7% during the first quarter. Principal Financial Group Inc. now owns 512,875 shares of the company's stock worth $7,237,000 after buying an additional 495,108 shares during the period. Charles Schwab Investment Management Inc. lifted its stake in Freshworks by 2.0% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,642,290 shares of the company's stock valued at $23,173,000 after buying an additional 32,333 shares in the last quarter. Deutsche Bank AG lifted its stake in Freshworks by 15.8% in the 4th quarter. Deutsche Bank AG now owns 513,810 shares of the company's stock valued at $8,308,000 after buying an additional 70,001 shares in the last quarter. Pier 88 Investment Partners LLC purchased a new position in Freshworks in the 1st quarter worth approximately $675,000. Finally, WCM Investment Management LLC purchased a new position in Freshworks in the 1st quarter worth approximately $13,426,000. Hedge funds and other institutional investors own 75.58% of the company's stock.

Freshworks Price Performance

Freshworks stock traded down $0.06 during midday trading on Friday, reaching $13.47. The stock had a trading volume of 2,205,288 shares, compared to its average volume of 4,925,168. Freshworks Inc. has a twelve month low of $10.81 and a twelve month high of $19.77. The firm has a market cap of $3.93 billion, a price-to-earnings ratio of -74.83 and a beta of 0.94. The firm's fifty day simple moving average is $13.95 and its two-hundred day simple moving average is $14.61.

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, beating analysts' consensus estimates 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 net margin of 7.02% and a negative return on equity of 2.56%. Freshworks's revenue was up 19.6% compared to the same quarter last year. During the same period last year, the business posted $0.08 EPS. 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 predict that Freshworks Inc. will post -0.19 EPS for the current fiscal year.

Insider Transactions at Freshworks

In related news, Chairman Rathnagirish Mathrubootham sold 70,997 shares of Freshworks stock in a transaction on Wednesday, June 11th. The stock was 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 directly owned 724,515 shares of the company's stock, valued at $11,599,485.15. The trade was a 8.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Barry L. Padgett sold 7,558 shares of the company'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 transaction of $114,428.12. Following the completion of the sale, 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 position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 199,711 shares of company stock valued at $3,089,439. 11.17% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

FRSH has been the topic of a number of research analyst reports. 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. UBS Group decreased their target price on shares of Freshworks from $22.00 to $19.00 and set a "buy" rating for the company in a research note on Friday, May 2nd. Cantor Fitzgerald upgraded shares of Freshworks to an "overweight" rating and set a $20.00 price objective for the company in a research report on Tuesday, June 3rd. Wall Street Zen cut shares of Freshworks from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 23rd. Finally, Morgan Stanley raised their target price on shares of Freshworks from $14.00 to $18.00 and gave the stock an "equal weight" rating in a research report on Thursday, May 1st. Eight investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target 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.