Freshworks Inc. (NASDAQ:FRSH) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Freshworks Inc. (NASDAQ:FRSH) has received a consensus rating of "Moderate Buy" from fourteen brokerages, with eight analysts recommending a buy, five a hold, and one a sell.
• The stock's average 12-month price target is $20.29, with recent adjustments from analysts reflecting a range between $19.00 and $25.00.
• In its latest quarterly earnings, Freshworks reported an EPS of $0.18, exceeding expectations, with a year-over-year revenue increase of 19.6%.

Shares of Freshworks Inc. (NASDAQ:FRSH - Get Free Report) have received a consensus rating of "Moderate Buy" from the fourteen research firms that are covering the stock, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and eight have issued a buy rating on the company. The average 1-year target price among brokers that have covered the stock in the last year is $20.2857.

A number of research analysts have recently commented on FRSH shares. Cantor Fitzgerald upgraded shares of Freshworks to an "overweight" rating and set a $20.00 price target on the stock in a report on Tuesday, June 3rd. Piper Sandler upped their price objective on shares of Freshworks from $22.00 to $25.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 30th. Finally, Wall Street Zen lowered shares of Freshworks from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 23rd.

Freshworks Trading Down 0.6%

Shares of NASDAQ FRSH traded down $0.09 during mid-day trading on Friday, reaching $13.08. The company had a trading volume of 973,461 shares, compared to its average volume of 3,731,176. The business's 50-day moving average is $13.90 and its 200-day moving average is $14.54. The stock has a market cap of $3.81 billion, a price-to-earnings ratio of -72.81 and a beta of 0.94. Freshworks has a 52 week low of $10.81 and a 52 week high of $19.77.

Freshworks (NASDAQ:FRSH - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The company reported $0.18 EPS for the quarter, topping analysts' consensus estimates of $0.12 by $0.06. The firm had revenue of $204.68 million for the quarter, compared to analysts' expectations of $198.85 million. Freshworks had a negative net margin of 7.02% and a negative return on equity of 2.56%. The business's revenue for the quarter was up 19.6% on a year-over-year basis. During the same period in the prior year, the business 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. As a group, equities research analysts forecast that Freshworks will post -0.19 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Zachary Nelson sold 8,432 shares of the company's stock in a transaction dated Monday, August 4th. The shares were sold at an average price of $13.01, for a total value of $109,700.32. Following the completion of the sale, the director directly owned 38,870 shares of the company's stock, valued at $505,698.70. This represents a 17.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jennifer H. Taylor sold 4,690 shares of the company's stock in a transaction dated Monday, August 11th. The stock was sold at an average price of $12.53, for a total transaction of $58,765.70. Following the completion of the sale, the director directly owned 44,218 shares of the company's stock, valued at approximately $554,051.54. This trade represents a 9.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 195,932 shares of company stock valued at $3,028,489 over the last quarter. 11.17% of the stock is owned by company insiders.

Institutional Trading of Freshworks

Several hedge funds have recently modified their holdings of FRSH. Envestnet Asset Management Inc. lifted its position in shares of Freshworks by 9.9% during the fourth quarter. Envestnet Asset Management Inc. now owns 22,439 shares of the company's stock valued at $363,000 after buying an additional 2,019 shares during the last quarter. Mariner LLC lifted its position in shares of Freshworks by 51.2% during the fourth quarter. Mariner LLC now owns 15,153 shares of the company's stock valued at $245,000 after buying an additional 5,131 shares during the last quarter. First Trust Advisors LP purchased a new stake in shares of Freshworks during the fourth quarter valued at about $2,045,000. Tower Research Capital LLC TRC lifted its position in shares of Freshworks by 664.0% during the fourth quarter. Tower Research Capital LLC TRC now owns 11,108 shares of the company's stock valued at $180,000 after buying an additional 9,654 shares during the last quarter. Finally, State of Tennessee Department of Treasury purchased a new stake in shares of Freshworks during the fourth quarter valued at about $337,000. 75.58% of the stock is owned by hedge funds and other institutional investors.

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.