Freshworks (NASDAQ:FRSH) Earns Buy Rating from Needham & Company LLC

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 reaffirmed by Needham & Company LLC in a report issued on Friday,Benzinga reports. They currently have a $25.00 price objective on the stock. Needham & Company LLC's target price suggests a potential upside of 93.65% from the stock's current price.

FRSH has been the subject of a number of other research reports. Piper Sandler upped their price objective on shares of Freshworks from $22.00 to $25.00 and gave the company an "overweight" rating in a report on Wednesday, July 30th. Wall Street Zen lowered shares of Freshworks from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 23rd. Finally, Cantor Fitzgerald raised shares of Freshworks to an "overweight" rating and set a $20.00 price objective for the company in a report on Tuesday, June 3rd. Eight equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $20.29.

Freshworks Stock Down 0.7%

Shares of NASDAQ FRSH opened at $12.91 on Friday. Freshworks has a 52 week low of $10.81 and a 52 week high of $19.77. The firm has a 50-day simple moving average of $13.63 and a 200-day simple moving average of $14.34. The stock has a market capitalization of $3.76 billion, a price-to-earnings ratio of -71.72 and a beta of 0.94.

Freshworks (NASDAQ:FRSH - Get Free Report) last announced 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. Freshworks had a negative net margin of 7.02% and a negative return on equity of 2.56%. The firm had revenue of $204.68 million during the quarter, compared to analyst estimates of $198.85 million. During the same quarter in the prior year, the firm posted $0.08 earnings per share. Freshworks's quarterly revenue was up 19.6% on a year-over-year basis. 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 expect that Freshworks will post -0.19 EPS for the current year.

Insider Activity at Freshworks

In other Freshworks news, Director Johanna Flower sold 8,000 shares of the stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $14.80, for a total transaction of $118,400.00. Following the completion of the transaction, the director owned 48,094 shares of the company's stock, valued at $711,791.20. This trade represents a 14.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Jennifer H. Taylor sold 7,558 shares of the stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $15.13, for a total transaction of $114,352.54. Following the transaction, the director directly owned 44,218 shares of the company's stock, valued at approximately $669,018.34. This trade represents a 14.60% decrease in their position. 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 quarter. 11.17% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in FRSH. Wellington Management Group LLP purchased a new position in shares of Freshworks in the first quarter valued at approximately $48,813,000. Nuveen LLC purchased a new position in shares of Freshworks in the first quarter valued at approximately $35,129,000. Driehaus Capital Management LLC purchased a new position in shares of Freshworks in the first quarter valued at approximately $34,231,000. Eminence Capital LP boosted its stake in shares of Freshworks by 39.4% in the second quarter. Eminence Capital LP now owns 7,334,601 shares of the company's stock valued at $109,359,000 after purchasing an additional 2,074,641 shares during the period. Finally, Norges Bank purchased a new position in shares of Freshworks in the second quarter valued at approximately $25,113,000. Hedge funds and other institutional investors 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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