Freshworks (NASDAQ:FRSH) Earns "Sell (E+)" Rating from Weiss Ratings

Key Points

• Freshworks has received a "sell (E+)" rating from Weiss Ratings, while other analysts have given more favorable ratings, including a "strong-buy" upgrade from Zacks Research.
• As of Wednesday, Freshworks' stock opened at $11.18, with a 12-month high of $19.77 and an average target price of $20.07 according to MarketBeat.
• In its recent quarterly earnings, Freshworks reported revenue of $204.68 million, exceeding analysts' expectations and marking a 19.6% year-over-year increase.

Freshworks (NASDAQ:FRSH - Get Free Report)'s stock had its "sell (e+)" rating reissued by analysts at Weiss Ratings in a research note issued on Wednesday,Weiss Ratings reports.

A number of other research analysts have also recently commented on FRSH. Zacks Research upgraded shares of Freshworks from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 29th. Needham & Company LLC reiterated a "buy" rating and set a $25.00 price target on shares of Freshworks in a research report on Friday, September 12th. Piper Sandler increased their price target on shares of Freshworks from $22.00 to $25.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. JMP Securities reissued a "market outperform" rating and set a $27.00 price objective on shares of Freshworks in a research note on Friday, September 12th. Finally, Wall Street Zen lowered Freshworks from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 23rd. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Freshworks has a consensus rating of "Moderate Buy" and an average target price of $20.07.

Freshworks Stock Performance

Shares of NASDAQ FRSH opened at $11.18 on Wednesday. Freshworks has a 12 month low of $10.81 and a 12 month high of $19.77. The business has a 50-day moving average of $12.79 and a 200-day moving average of $13.87. The firm has a market capitalization of $3.26 billion, a price-to-earnings ratio of -62.11 and a beta of 0.91.

Freshworks (NASDAQ:FRSH - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The company reported $0.18 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 business had revenue of $204.68 million for the quarter, compared to analysts' expectations of $198.85 million. During the same period last year, the business earned $0.08 earnings per share. The business'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. On average, analysts predict that Freshworks will post -0.19 earnings per share for the current year.

Insiders Place Their Bets

In related news, CAO Philippa Lawrence sold 2,590 shares of the firm's stock in a transaction on Monday, September 15th. The stock was sold at an average price of $12.53, for a total value of $32,452.70. Following the completion of the sale, the chief accounting officer owned 415,949 shares of the company's stock, valued at $5,211,840.97. This trade represents a 0.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Mika Yamamoto sold 4,289 shares of the 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 completion of the transaction, the insider owned 533,993 shares of the company's stock, valued at approximately $7,038,027.74. This trade represents a 0.80% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 46,014 shares of company stock worth $601,475. Insiders own 11.17% of the company's stock.

Hedge Funds Weigh In On Freshworks

A number of institutional investors have recently added to or reduced their stakes in the company. Xponance Inc. raised its holdings in Freshworks by 5.1% in the first quarter. Xponance Inc. now owns 15,605 shares of the company's stock worth $220,000 after purchasing an additional 758 shares in the last quarter. Amundi raised its holdings in Freshworks by 1.3% in the first quarter. Amundi now owns 80,074 shares of the company's stock worth $1,049,000 after purchasing an additional 1,040 shares in the last quarter. Verdence Capital Advisors LLC raised its holdings in Freshworks by 7.4% in the second quarter. Verdence Capital Advisors LLC now owns 15,547 shares of the company's stock worth $232,000 after purchasing an additional 1,070 shares in the last quarter. Vanguard Personalized Indexing Management LLC raised its holdings in Freshworks by 11.0% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 11,694 shares of the company's stock worth $174,000 after purchasing an additional 1,160 shares in the last quarter. Finally, Legato Capital Management LLC increased its holdings in shares of Freshworks by 4.0% during the first quarter. Legato Capital Management LLC now owns 33,080 shares of the company's stock valued at $467,000 after acquiring an additional 1,260 shares in the last quarter. 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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