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 target price cut by Robert W. Baird from $18.00 to $16.00 in a note issued to investors on Monday,Benzinga reports. The firm currently has a "neutral" rating on the stock. Robert W. Baird's price target indicates a potential upside of 27.00% from the company's previous close.

A number of other equities research analysts also recently issued reports on the stock. Wall Street Zen downgraded shares of Freshworks from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 23rd. JMP Securities reaffirmed a "market outperform" rating and issued a $27.00 target price on shares of Freshworks in a report on Friday. Morgan Stanley dropped their price target on Freshworks from $18.00 to $16.00 and set an "equal weight" rating on the stock in a report on Friday. Needham & Company LLC reissued a "buy" rating and issued a $25.00 price objective on shares of Freshworks in a research report on Friday. Finally, Piper Sandler raised their target price on Freshworks from $22.00 to $25.00 and gave the company an "overweight" rating in a research report on Wednesday, July 30th. Eight research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $20.00.

Freshworks Trading Up 1.2%

NASDAQ:FRSH traded up $0.15 on Monday, reaching $12.60. 585,839 shares of the stock traded hands, compared to its average volume of 3,759,892. Freshworks has a 1-year low of $10.81 and a 1-year high of $19.77. The company's 50 day moving average is $13.57 and its 200-day moving average is $14.27. The firm has a market capitalization of $3.67 billion, a price-to-earnings ratio of -70.08 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. The company had revenue of $204.68 million for the quarter, compared to the consensus estimate of $198.85 million. Freshworks had a negative return on equity of 2.56% and a negative net margin of 7.02%.The firm's revenue was up 19.6% compared to the same quarter last year. During the same period in the previous year, the business 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, equities research analysts forecast that Freshworks will post -0.19 EPS for the current fiscal year.

Insider Activity

In other Freshworks news, Director Zachary Nelson sold 8,433 shares of the company's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $13.14, for a total transaction of $110,809.62. Following the transaction, the director owned 38,870 shares in the company, valued at approximately $510,751.80. This represents a 17.83% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Mika Yamamoto sold 4,289 shares of the firm's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $13.18, for a total value of $56,529.02. Following the transaction, the insider directly owned 533,993 shares of the company's stock, valued at $7,038,027.74. This represents a 0.80% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 79,181 shares of company stock worth $1,107,538. 11.17% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. BNP PARIBAS ASSET MANAGEMENT Holding S.A. bought a new position in shares of Freshworks during the 2nd quarter valued at $25,000. EverSource Wealth Advisors LLC grew its holdings in shares of Freshworks by 427.6% in the second quarter. EverSource Wealth Advisors LLC now owns 4,479 shares of the company's stock worth $67,000 after acquiring an additional 3,630 shares during the period. FNY Investment Advisers LLC purchased a new stake in Freshworks during the first quarter valued at $70,000. DekaBank Deutsche Girozentrale lifted its holdings in Freshworks by 91.2% in the first quarter. DekaBank Deutsche Girozentrale now owns 5,899 shares of the company's stock valued at $84,000 after acquiring an additional 2,814 shares during the period. Finally, Nisa Investment Advisors LLC lifted its holdings in Freshworks by 55.1% in the second quarter. Nisa Investment Advisors LLC now owns 6,064 shares of the company's stock valued at $90,000 after acquiring an additional 2,155 shares during the period. 75.58% of the stock is owned by hedge funds and other 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.

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