Needham & Company LLC Reiterates "Buy" Rating for Freshworks (NASDAQ:FRSH)

Key Points

• Needham & Company LLC has reaffirmed a "buy" rating for Freshworks (NASDAQ:FRSH) with a price target of $25.00, indicating a potential upside of 93.65% from its current price.
• Freshworks reported $0.18 EPS for the last quarter, beating analysts' estimates of $0.12, with a year-over-year revenue growth of 19.6% to $204.68 million.
• Insider activity showed notable sales, with directors selling a total of 79,181 shares in the last quarter, which has impacted their ownership stakes significantly.

Freshworks (NASDAQ:FRSH - Get Free Report)'s stock had its "buy" rating reiterated by equities researchers at Needham & Company LLC in a research note issued on Friday,Benzinga reports. They currently have a $25.00 target price on the stock. Needham & Company LLC's price target would indicate a potential upside of 91.81% from the stock's current price.

Other equities research analysts have also recently issued reports about the company. Piper Sandler lifted their target price on Freshworks from $22.00 to $25.00 and gave the company an "overweight" rating in a research note on Wednesday, July 30th. Cantor Fitzgerald upgraded Freshworks to an "overweight" rating and set a $20.00 price objective on the stock in a research note on Tuesday, June 3rd. Finally, Wall Street Zen lowered Freshworks from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 23rd. Eight investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Freshworks presently has an average rating of "Moderate Buy" and a consensus target price of $20.00.

Freshworks Stock Performance

Shares of NASDAQ:FRSH traded up $0.47 during trading on Friday, hitting $13.03. 1,522,521 shares of the stock were exchanged, compared to its average volume of 3,758,650. Freshworks has a 1-year low of $10.81 and a 1-year high of $19.77. The company has a market capitalization of $3.80 billion, a price-to-earnings ratio of -72.13 and a beta of 0.94. The company's fifty day simple moving average is $13.47 and its 200-day simple moving average is $14.23.

Freshworks (NASDAQ:FRSH - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The company reported $0.18 earnings per share for the quarter, topping the consensus estimate of $0.12 by $0.06. The company 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 for the quarter was up 19.6% compared to the same quarter last year. During the same quarter last year, the firm earned $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. On average, research analysts forecast that Freshworks will post -0.19 earnings per share for the current fiscal year.

Insider Buying and Selling at Freshworks

In other Freshworks news, Director Jennifer H. Taylor sold 4,685 shares of the company's stock in a transaction on Thursday, September 11th. The stock was sold at an average price of $12.96, for a total transaction of $60,717.60. Following the completion of the sale, the director directly owned 44,218 shares in the company, valued at $573,065.28. This represents a 9.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Mika Yamamoto sold 4,289 shares of the company's stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $13.18, for a total value of $56,529.02. Following the sale, the insider owned 533,993 shares of the company's stock, valued at $7,038,027.74. The trade was a 0.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 79,181 shares of company stock valued at $1,107,538 over the last ninety days. 11.17% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Ameriprise Financial Inc. boosted its stake in Freshworks by 34.9% during the 4th quarter. Ameriprise Financial Inc. now owns 369,370 shares of the company's stock valued at $5,973,000 after purchasing an additional 95,463 shares during the last quarter. Cetera Investment Advisers purchased a new position in shares of Freshworks during the 4th quarter valued at $190,000. Deutsche Bank AG grew its position in shares of Freshworks by 15.8% during the 4th quarter. Deutsche Bank AG now owns 513,810 shares of the company's stock valued at $8,308,000 after purchasing an additional 70,001 shares in the last quarter. Ensign Peak Advisors Inc grew its position in shares of Freshworks by 81.6% during the 4th quarter. Ensign Peak Advisors Inc now owns 108,972 shares of the company's stock valued at $1,762,000 after purchasing an additional 48,950 shares in the last quarter. Finally, Focus Partners Wealth purchased a new position in shares of Freshworks during the 4th quarter valued at $167,000. 75.58% of the stock is currently owned by 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.