Freshworks Inc. (NASDAQ:FRSH) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Freshworks Inc. has been rated as a "Moderate Buy" by fourteen research firms, with an average 12-month price target of $20.00.
• In its latest earnings report, Freshworks beat analysts' expectations with $0.18 EPS and a revenue of $204.68 million, showing a year-over-year growth of 19.6%.
• Institutional investors hold 75.58% of Freshworks' stock, with Principal Financial Group significantly increasing its stake by over 2,786% in the first quarter.

Freshworks Inc. (NASDAQ:FRSH - Get Free Report) has been given a consensus rating of "Moderate Buy" by the fourteen research firms that are covering the firm, Marketbeat.com reports. One analyst has rated the stock with a sell rating, five have given a hold rating and eight have given a buy rating to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $20.00.

A number of research analysts recently issued reports on FRSH shares. Cantor Fitzgerald upgraded shares of Freshworks to an "overweight" rating and set a $20.00 target price on the stock in a research note on Tuesday, June 3rd. Wall Street Zen downgraded Freshworks from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 23rd. Needham & Company LLC reiterated a "buy" rating and issued a $25.00 price objective on shares of Freshworks in a research note on Friday, September 12th. Piper Sandler boosted their price objective on Freshworks from $22.00 to $25.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 30th. Finally, Robert W. Baird lowered their target price on Freshworks from $18.00 to $16.00 and set a "neutral" rating on the stock in a report on Monday, September 15th.

Freshworks Price Performance

NASDAQ:FRSH opened at $12.83 on Wednesday. The stock has a market cap of $3.74 billion, a PE ratio of -71.27 and a beta of 0.94. Freshworks has a fifty-two week low of $10.81 and a fifty-two week high of $19.77. The stock's 50-day moving average is $13.33 and its two-hundred day moving average is $14.11.

Freshworks (NASDAQ:FRSH - Get Free Report) last released its quarterly earnings data 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 firm had revenue of $204.68 million during the quarter, compared to analysts' expectations of $198.85 million. Freshworks had a negative return on equity of 2.56% and a negative net margin of 7.02%.The business's revenue for the quarter was up 19.6% on a year-over-year basis. During the same quarter last year, the firm earned $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 research analysts anticipate that Freshworks will post -0.19 earnings per share for the current year.

Insiders Place Their Bets

In other Freshworks news, Director Jennifer H. Taylor sold 4,685 shares of the stock in a transaction 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 completion of the sale, the director directly owned 44,218 shares of the company's stock, valued at $573,065.28. This represents a 9.58% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Mika Yamamoto sold 4,289 shares of the business's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $13.18, for a total transaction of $56,529.02. Following the transaction, the insider owned 533,993 shares in the company, valued at approximately $7,038,027.74. The trade was a 0.80% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 81,771 shares of company stock valued at $1,139,991 in the last 90 days. 11.17% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Freshworks

Hedge funds have recently made changes to their positions in the stock. Principal Financial Group Inc. boosted its stake 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 in the last quarter. Charles Schwab Investment Management Inc. increased its stake in Freshworks by 2.0% in the first quarter. Charles Schwab Investment Management Inc. now owns 1,642,290 shares of the company's stock valued at $23,173,000 after acquiring an additional 32,333 shares during the period. Pier 88 Investment Partners LLC acquired a new position in Freshworks in the first quarter worth about $675,000. WCM Investment Management LLC acquired a new position in Freshworks in the first quarter worth about $13,426,000. Finally, New York State Common Retirement Fund lifted its stake in Freshworks by 75.8% during the first quarter. New York State Common Retirement Fund now owns 489,511 shares of the company's stock worth $6,907,000 after purchasing an additional 211,102 shares during the period. Institutional investors own 75.58% of the company's stock.

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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