Freshworks (NASDAQ:FRSH) Raised to "Strong-Buy" at Zacks Research

Key Points

• Freshworks has been upgraded to a "Strong-Buy" rating by Zacks Research, indicating a positive outlook from analysts on the company's performance.
• Analysts' consensus rating for Freshworks is "Moderate Buy" with an average price target of $20.00, despite mixed assessments from various firms regarding the company's stock.
• Freshworks has reported positive earnings, with a 19.6% increase in revenue year-over-year, and has set its fiscal year 2025 guidance at 0.560-0.580 EPS.

Freshworks (NASDAQ:FRSH - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Monday,Zacks.com reports.

Several other analysts also recently issued reports on the company. Needham & Company LLC restated a "buy" rating and issued a $25.00 price target on shares of Freshworks in a research note on Friday, September 12th. Wells Fargo & Company assumed coverage on Freshworks in a research note on Tuesday. They issued a "cautious" rating for the company. Wall Street Zen downgraded Freshworks from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 23rd. Piper Sandler boosted their price target on Freshworks from $22.00 to $25.00 and gave the company an "overweight" rating in a research note on Wednesday, July 30th. Finally, JMP Securities restated a "market outperform" rating and issued a $27.00 price target on shares of Freshworks in a research note on Friday, September 12th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Freshworks has a consensus rating of "Moderate Buy" and an average target price of $20.00.

Freshworks Trading Down 4.8%

Shares of NASDAQ FRSH opened at $11.77 on Monday. Freshworks has a 12 month low of $10.81 and a 12 month high of $19.77. The stock has a 50 day moving average of $13.12 and a 200-day moving average of $14.03. The company has a market capitalization of $3.43 billion, a P/E ratio of -65.39 and a beta of 0.94.

Freshworks (NASDAQ:FRSH - Get Free Report) last issued its earnings results on Tuesday, July 29th. The company reported $0.18 EPS for the quarter, topping the consensus estimate 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 company had revenue of $204.68 million during the quarter, compared to the consensus estimate of $198.85 million. During the same period in the previous year, the company posted $0.08 EPS. 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. Analysts predict that Freshworks will post -0.19 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Zachary Nelson sold 8,433 shares of the company's stock in a transaction 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 completion of the sale, the director directly 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 SEC, which can be accessed through this hyperlink. Also, insider Mika Yamamoto sold 4,289 shares of the business'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 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. In the last quarter, insiders have sold 45,148 shares of company stock valued at $591,559. 11.17% of the stock is owned by insiders.

Hedge Funds Weigh In On Freshworks

A number of institutional investors have recently modified their holdings of FRSH. GAMMA Investing LLC raised its holdings in shares of Freshworks by 2,639.5% during the 1st quarter. GAMMA Investing LLC now owns 9,369 shares of the company's stock worth $132,000 after buying an additional 9,027 shares in the last quarter. Rhumbline Advisers raised its holdings in shares of Freshworks by 18.1% during the 1st quarter. Rhumbline Advisers now owns 325,704 shares of the company's stock worth $4,596,000 after buying an additional 49,873 shares in the last quarter. MRA Advisory Group acquired a new position in Freshworks in the 1st quarter worth about $320,000. SG Americas Securities LLC increased its holdings in Freshworks by 303.0% in the 1st quarter. SG Americas Securities LLC now owns 56,057 shares of the company's stock worth $791,000 after purchasing an additional 42,148 shares in the last quarter. Finally, Sapient Capital LLC increased its holdings in Freshworks by 18.7% in the 1st quarter. Sapient Capital LLC now owns 25,195 shares of the company's stock worth $356,000 after purchasing an additional 3,974 shares in the last quarter. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.