Freshworks (NASDAQ:FRSH) Receives "Market Outperform" Rating from JMP Securities

Key Points

• JMP Securities has reaffirmed a "market outperform" rating for Freshworks (NASDAQ:FRSH), with a price target of $27.00, indicating a potential upside of 112.70% from its previous close.
• Freshworks reported a 19.6% year-over-year revenue increase, totaling $204.68 million, and exceeded earnings estimates for the quarter by posting $0.18 EPS compared to the consensus estimate of $0.12.
• A total of eight analysts currently rate Freshworks as a Buy, reflecting positive sentiment, with an average price target of $20.29.

JMP Securities restated their market outperform rating on shares of Freshworks (NASDAQ:FRSH - Free Report) in a research report report published on Friday,Benzinga reports. JMP Securities currently has a $27.00 price target on the stock.

A number of other equities analysts also recently commented on FRSH. Piper Sandler boosted their target price on shares of Freshworks from $22.00 to $25.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Wall Street Zen downgraded shares of Freshworks from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 23rd. Cantor Fitzgerald upgraded shares of Freshworks to an "overweight" rating and set a $20.00 price objective on the stock in a report on Tuesday, June 3rd. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $25.00 target price on shares of Freshworks in a research report on Friday, September 12th. Eight equities 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 company's stock. Based on data from MarketBeat, Freshworks has an average rating of "Moderate Buy" and an average target price of $20.00.

Freshworks Trading Up 3.5%

NASDAQ FRSH traded up $0.44 on Friday, reaching $13.00. 1,522,521 shares of the stock were exchanged, compared to its average volume of 3,758,650. Freshworks has a one year low of $10.81 and a one year high of $19.77. The company's 50-day simple moving average is $13.47 and its two-hundred day simple moving average is $14.23. The firm has a market capitalization of $3.79 billion, a PE ratio of -72.13 and a beta of 0.94.

Freshworks (NASDAQ:FRSH - Get Free Report) last posted its earnings results on Tuesday, July 29th. The company reported $0.18 earnings per share 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 firm had revenue of $204.68 million during the quarter, compared to analyst estimates of $198.85 million. During the same period last year, the firm posted $0.08 earnings per share. Freshworks'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. Sell-side analysts forecast that Freshworks will post -0.19 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Mika Yamamoto sold 4,289 shares of the business's stock in a transaction that occurred 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 owned 533,993 shares of the company's stock, valued at approximately $7,038,027.74. The trade was a 0.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Jennifer H. Taylor sold 7,558 shares of the company's stock in a transaction on Tuesday, July 1st. The stock was sold at an average price of $15.13, for a total value of $114,352.54. Following the transaction, the director directly owned 44,218 shares in the company, valued at $669,018.34. This represents a 14.60% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 79,181 shares of company stock worth $1,107,538. Corporate insiders own 11.17% of the company's stock.

Institutional Trading of Freshworks

Institutional investors have recently bought and sold shares of the company. Principal Financial Group Inc. lifted its position in shares of Freshworks by 2,786.7% in the first quarter. Principal Financial Group Inc. now owns 512,875 shares of the company's stock valued at $7,237,000 after acquiring an additional 495,108 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its position in Freshworks by 2.0% during the first quarter. Charles Schwab Investment Management Inc. now owns 1,642,290 shares of the company's stock worth $23,173,000 after buying an additional 32,333 shares during the period. Deutsche Bank AG lifted its position in Freshworks by 15.8% during the fourth quarter. Deutsche Bank AG now owns 513,810 shares of the company's stock worth $8,308,000 after buying an additional 70,001 shares during the period. Pier 88 Investment Partners LLC purchased a new position in Freshworks during the first quarter worth about $675,000. Finally, WCM Investment Management LLC purchased a new position in Freshworks during the first quarter worth about $13,426,000. 75.58% of the stock is currently 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.