Freshworks (NASDAQ:FRSH) Sees Strong Trading Volume - Still a Buy?

Freshworks Inc. (NASDAQ:FRSH - Get Free Report) shares saw unusually-strong trading volume on Tuesday . Approximately 13,958,898 shares were traded during mid-day trading, an increase of 315% from the previous session's volume of 3,366,188 shares.The stock last traded at $13.93 and had previously closed at $14.12.

Analyst Ratings Changes

Several equities analysts recently commented on FRSH shares. Wells Fargo & Company upped their price target on shares of Freshworks from $11.00 to $12.00 and gave the company an "underweight" rating in a research note on Wednesday, April 30th. Scotiabank upped their price target on shares of Freshworks from $14.00 to $18.00 and gave the company a "sector perform" rating in a research note on Wednesday, April 30th. Cantor Fitzgerald upgraded shares of Freshworks to an "overweight" rating and set a $20.00 price objective on the stock in a research note on Tuesday, June 3rd. UBS Group dropped their target price on shares of Freshworks from $22.00 to $19.00 and set a "buy" rating for the company in a report on Friday, May 2nd. Finally, Jefferies Financial Group cut their target price on shares of Freshworks from $22.00 to $20.00 and set a "hold" rating on the stock in a research report on Monday, March 31st. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating, eight have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $20.07.

Freshworks Stock Performance

The stock has a 50 day moving average of $15.04 and a 200-day moving average of $15.46. The firm has a market capitalization of $4.19 billion, a P/E ratio of -59.12 and a beta of 0.95.

Freshworks (NASDAQ:FRSH - Get Free Report) last announced its quarterly earnings results on Tuesday, April 29th. The company reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.05. Freshworks had a negative return on equity of 4.41% and a negative net margin of 9.76%. The firm had revenue of $196.27 million for the quarter, compared to analysts' expectations of $191.90 million. During the same period in the prior year, the business posted $0.10 earnings per share. The company's revenue was up 18.9% on a year-over-year basis. As a group, sell-side analysts expect that Freshworks Inc. will post -0.19 EPS for the current year.

Insider Activity at Freshworks

In related news, Chairman Rathnagirish Mathrubootham sold 70,997 shares of the company's stock in a transaction that occurred on Wednesday, June 11th. The stock was sold at an average price of $16.01, for a total transaction of $1,136,661.97. Following the completion of the transaction, the chairman owned 724,515 shares in the company, valued at $11,599,485.15. This represents a 8.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Barry L. Padgett sold 7,558 shares of the company's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $15.14, for a total value of $114,428.12. Following the transaction, the director owned 32,635 shares of the company's stock, valued at approximately $494,093.90. This represents a 18.80% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 206,075 shares of company stock valued at $3,219,261 in the last ninety days. Insiders own 11.17% of the company's stock.

Hedge Funds Weigh In On Freshworks

Institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its position in shares of Freshworks by 4.5% during the first quarter. Vanguard Group Inc. now owns 26,189,892 shares of the company's stock valued at $369,539,000 after buying an additional 1,126,013 shares during the last quarter. Eminence Capital LP purchased a new position in Freshworks in the fourth quarter worth about $86,002,000. Geode Capital Management LLC raised its stake in shares of Freshworks by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 4,673,600 shares of the company's stock worth $75,588,000 after buying an additional 79,388 shares during the period. TPG GP A LLC raised its stake in shares of Freshworks by 28.7% in the fourth quarter. TPG GP A LLC now owns 4,346,855 shares of the company's stock worth $70,289,000 after buying an additional 969,283 shares during the period. Finally, Fuller & Thaler Asset Management Inc. raised its stake in shares of Freshworks by 27.9% in the first quarter. Fuller & Thaler Asset Management Inc. now owns 3,951,115 shares of the company's stock worth $55,750,000 after buying an additional 862,315 shares during the period. 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.