Freshworks Inc. (NASDAQ:FRSH) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Freshworks Inc. has received a consensus rating of "Moderate Buy" from sixteen brokerages, with one sell recommendation, six holds, eight buys, and one strong buy.
• The average one-year target price for Freshworks stock is $20.07, showcasing varied analyst outlooks on the company's potential.
• Insider activity has seen significant stock sales, with CAO Philippa Lawrence and insider Mika Yamamoto reducing their holdings, indicating potential caution among executives.

Freshworks Inc. (NASDAQ:FRSH - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the sixteen brokerages that are covering the company, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, six have given a hold recommendation, eight have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year target price among brokers that have covered the stock in the last year is $20.0714.

Several research firms recently commented on FRSH. Morgan Stanley cut their target price on shares of Freshworks from $18.00 to $16.00 and set an "equal weight" rating for the company in a research note on Friday, September 12th. Piper Sandler boosted their price target on shares of Freshworks from $22.00 to $25.00 and gave the company an "overweight" rating in a report on Wednesday, July 30th. Robert W. Baird cut their price target on shares of Freshworks from $18.00 to $16.00 and set a "neutral" rating on the stock in a report on Monday, September 15th. Weiss Ratings restated a "sell (e+)" rating on shares of Freshworks in a report on Wednesday, October 8th. Finally, Wall Street Zen lowered shares of Freshworks from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 23rd.

Freshworks Price Performance

FRSH stock opened at $10.88 on Friday. Freshworks has a 12 month low of $10.76 and a 12 month high of $19.77. The firm has a market cap of $3.17 billion, a PE ratio of -60.44 and a beta of 0.91. The firm has a 50 day simple moving average of $12.52 and a 200 day simple moving average of $13.67.

Freshworks (NASDAQ:FRSH - Get Free Report) last released its earnings results on Thursday, September 11th. The company reported $0.18 EPS for the quarter. Freshworks had a negative net margin of 7.02% and a negative return on equity of 2.56%. The business had revenue of $204.68 million during the quarter. As a group, sell-side analysts expect that Freshworks will post -0.19 earnings per share for the current year.

Insider Activity

In other news, CAO Philippa Lawrence sold 2,590 shares of the business's stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $12.53, for a total transaction of $32,452.70. Following the sale, the chief accounting officer owned 415,949 shares in the company, valued at $5,211,840.97. The trade was a 0.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Mika Yamamoto sold 4,289 shares of the company's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $13.18, for a total transaction of $56,529.02. Following the completion of the transaction, the insider owned 533,993 shares in the company, valued at approximately $7,038,027.74. This represents a 0.80% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 41,329 shares of company stock worth $534,620 over the last three months. 11.17% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Inlight Wealth Management LLC acquired a new position in Freshworks in the 2nd quarter valued at approximately $1,773,000. Principal Financial Group Inc. increased its stake in Freshworks by 2,786.7% in the 1st quarter. Principal Financial Group Inc. now owns 512,875 shares of the company's stock valued at $7,237,000 after buying an additional 495,108 shares during the period. Charles Schwab Investment Management Inc. increased 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 during the period. Pier 88 Investment Partners LLC acquired a new position in Freshworks in the 1st quarter valued at approximately $675,000. Finally, WCM Investment Management LLC acquired a new position in Freshworks in the 1st quarter valued at approximately $13,426,000. Institutional investors and hedge funds own 75.58% of the company's stock.

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.

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