Freshworks (NASDAQ:FRSH) Price Target Lowered to $16.00 at Robert W. Baird

Key Points

• Robert W. Baird has lowered the price target for Freshworks (NASDAQ:FRSH) from $18.00 to $16.00, maintaining a "neutral" rating, which suggests a potential upside of 27.00% from the company's previous close.
• Multiple research firms have rated Freshworks with mixed perspectives; while some analysts have downgraded ratings, others have set higher price targets, reflecting varied sentiment about the stock's future performance.
• Freshworks reported a 19.6% year-over-year revenue increase, with earnings per share of $0.18, surpassing analysts' expectations of $0.12 for the quarter.

Freshworks (NASDAQ:FRSH - Get Free Report) had its price target dropped by Robert W. Baird from $18.00 to $16.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has a "neutral" rating on the stock. Robert W. Baird's target price points to a potential upside of 23.41% from the company's current price.

FRSH has been the subject of several other reports. Morgan Stanley dropped their price objective on Freshworks from $18.00 to $16.00 and set an "equal weight" rating for the company in a report on Friday, September 12th. Needham & Company LLC reissued a "buy" rating and set a $25.00 price objective on shares of Freshworks in a report on Friday, September 12th. Piper Sandler boosted their price objective on Freshworks from $22.00 to $25.00 and gave the stock an "overweight" rating in a 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 report on Friday, September 12th. Finally, Wall Street Zen cut Freshworks from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 23rd. Eight research 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. According to data from MarketBeat.com, Freshworks has an average rating of "Moderate Buy" and a consensus price target of $20.00.

Freshworks Stock Performance

Shares of NASDAQ:FRSH traded down $0.21 on Monday, hitting $12.97. The stock had a trading volume of 2,066,820 shares, compared to its average volume of 3,769,462. Freshworks has a twelve month low of $10.81 and a twelve month high of $19.77. The firm's 50 day moving average price is $13.39 and its 200-day moving average price is $14.20. The company has a market capitalization of $3.78 billion, a price-to-earnings ratio of -72.08 and a beta of 0.94.

Freshworks (NASDAQ:FRSH - Get Free Report) last released its quarterly earnings results 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 return on equity of 2.56% and a negative net margin of 7.02%.The business had revenue of $204.68 million during the quarter, compared to analysts' expectations of $198.85 million. During the same period in the previous year, the business posted $0.08 earnings per share. The firm's revenue for the quarter was up 19.6% compared to the same quarter last year. 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, sell-side analysts predict that Freshworks will post -0.19 EPS for the current year.

Insider Buying and Selling

In related news, CAO Philippa Lawrence sold 2,590 shares of the business's stock in a transaction dated 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 transaction, the chief accounting officer owned 415,949 shares of the company's stock, 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 document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Mika Yamamoto sold 4,289 shares of the stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $13.18, for a total transaction of $56,529.02. Following the completion of the transaction, the insider directly owned 533,993 shares of the company's stock, valued at $7,038,027.74. This trade represents a 0.80% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 81,771 shares of company stock valued at $1,139,991 in the last 90 days. 11.17% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Freshworks

Institutional investors have recently modified their holdings of the company. BNP PARIBAS ASSET MANAGEMENT Holding S.A. bought a new stake in shares of Freshworks in the 2nd quarter valued at $25,000. EverSource Wealth Advisors LLC boosted its stake in shares of Freshworks by 427.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,479 shares of the company's stock valued at $67,000 after purchasing an additional 3,630 shares during the last quarter. FNY Investment Advisers LLC bought a new stake in shares of Freshworks in the 1st quarter valued at $70,000. DekaBank Deutsche Girozentrale boosted its stake in shares of Freshworks by 91.2% in the 1st quarter. DekaBank Deutsche Girozentrale now owns 5,899 shares of the company's stock valued at $84,000 after purchasing an additional 2,814 shares during the last quarter. Finally, Nisa Investment Advisors LLC boosted its stake in shares of Freshworks by 55.1% in the 2nd quarter. Nisa Investment Advisors LLC now owns 6,064 shares of the company's stock valued at $90,000 after purchasing an additional 2,155 shares during the last quarter. 75.58% of the stock is 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.