JMP Securities Reaffirms Market Outperform Rating for Freshworks (NASDAQ:FRSH)

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.

Freshworks (NASDAQ:FRSH - Get Free Report)'s stock had its "market outperform" rating reiterated by research analysts at JMP Securities in a note issued to investors on Friday,Benzinga reports. They currently have a $27.00 price objective on the stock. JMP Securities' price objective would indicate a potential upside of 112.70% from the stock's previous close.

Other equities research analysts have also issued reports about the company. Cantor Fitzgerald raised Freshworks to an "overweight" rating and set a $20.00 price objective for the company in a research note on Tuesday, June 3rd. 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. Wall Street Zen downgraded shares of Freshworks from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 23rd. Finally, Needham & Company LLC restated a "buy" rating and issued a $25.00 price target on shares of Freshworks in a research report on Friday. Eight analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $20.29.

Freshworks Stock Performance

Shares of NASDAQ FRSH opened at $12.69 on Friday. Freshworks has a 1 year low of $10.81 and a 1 year high of $19.77. The firm has a market cap of $3.70 billion, a P/E ratio of -70.58 and a beta of 0.94. The stock has a fifty day moving average price of $13.63 and a two-hundred day moving average price of $14.34.

Freshworks (NASDAQ:FRSH - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The company reported $0.18 earnings per share for the quarter, beating 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 business had revenue of $204.68 million during the quarter, compared to analyst estimates of $198.85 million. During the same quarter in the prior year, the firm posted $0.08 earnings per share. The company's revenue was up 19.6% on a year-over-year basis. Freshworks has set its FY 2025 guidance at 0.560-0.580 EPS. Q3 2025 guidance at 0.120-0.140 EPS. On average, research analysts predict that Freshworks will post -0.19 earnings per share for the current fiscal year.

Insider Buying and Selling at Freshworks

In other Freshworks news, Director Johanna Flower sold 8,000 shares of the company's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $14.80, for a total transaction of $118,400.00. Following the transaction, the director directly owned 48,094 shares in the company, valued at approximately $711,791.20. This represents a 14.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Mika Yamamoto sold 4,289 shares of Freshworks stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $13.18, for a total transaction of $56,529.02. Following the sale, the insider owned 533,993 shares of the company's stock, valued at approximately $7,038,027.74. This represents a 0.80% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 79,181 shares of company stock worth $1,107,538 over the last ninety days. Company insiders own 11.17% of the company's stock.

Hedge Funds Weigh In On Freshworks

A number of hedge funds and other institutional investors have recently bought and sold shares of FRSH. Wellington Management Group LLP acquired a new stake in Freshworks during the 1st quarter worth $48,813,000. Nuveen LLC acquired a new position in shares of Freshworks during the 1st quarter worth about $35,129,000. Driehaus Capital Management LLC bought a new stake in shares of Freshworks in the 1st quarter valued at about $34,231,000. Eminence Capital LP boosted its stake in Freshworks by 39.4% during the 2nd quarter. Eminence Capital LP now owns 7,334,601 shares of the company's stock worth $109,359,000 after acquiring an additional 2,074,641 shares during the last quarter. Finally, Norges Bank bought a new stake in Freshworks in the second quarter valued at approximately $25,113,000. 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.

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