Freshworks (NASDAQ:FRSH) Shares Gap Up - What's Next?

Key Points

• Freshworks shares gapped higher, opening at $12.49 versus the prior close of $11.89, and later traded near $12.27.
• Analyst sentiment is moderately bullish: the stock has a consensus “Moderate Buy” rating and a $14.46 price target, with recent targets ranging from $13 to $18.
• Freshworks recently exceeded quarterly earnings and revenue expectations, reporting $0.17 EPS and $237.38 million in revenue, while revenue grew 16% year over year. Institutional investors own approximately 75.6% of the company.

Freshworks Inc. (NASDAQ:FRSH - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $11.89, but opened at $12.49. Freshworks shares last traded at $12.2650, with a volume of 451,317 shares trading hands.

Analysts Set New Price Targets

FRSH has been the subject of a number of analyst reports. Zacks Research downgraded shares of Freshworks from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 10th. Robert W. Baird set a $13.00 price target on shares of Freshworks in a research report on Wednesday, August 5th. Wall Street Zen raised Freshworks from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. KeyCorp started coverage on shares of Freshworks in a report on Monday. They issued an "overweight" rating and a $18.00 target price on the stock. Finally, Cantor Fitzgerald upped their price objective on Freshworks from $12.00 to $15.00 and gave the stock an "overweight" rating in a report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $14.46.

Freshworks Price Performance

The firm has a market cap of $3.22 billion, a price-to-earnings ratio of 19.29, a price-to-earnings-growth ratio of 9.91 and a beta of 0.89. The business's 50-day moving average price is $11.82 and its two-hundred day moving average price is $9.80.

Freshworks (NASDAQ:FRSH - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.13 by $0.04. Freshworks had a return on equity of 5.52% and a net margin of 20.49%.The business had revenue of $237.38 million for the quarter, compared to analysts' expectations of $233.62 million. During the same quarter last year, the firm earned $0.18 earnings per share. The business's revenue was up 16.0% on a year-over-year basis. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. As a group, sell-side analysts forecast that Freshworks Inc. will post 0.04 earnings per share for the current year.

Insider Buying and Selling

In other Freshworks news, CAO Philippa Lawrence sold 52,767 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $13.25, for a total transaction of $699,162.75. Following the transaction, the chief accounting officer owned 389,296 shares of the company's stock, valued at $5,158,172. This trade represents a 11.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jennifer Taylor sold 6,618 shares of Freshworks stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $10.44, for a total transaction of $69,091.92. Following the completion of the transaction, the director owned 62,673 shares in the company, valued at approximately $654,306.12. This trade represents a 9.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 80,003 shares of company stock valued at $969,494. Insiders own 8.54% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada increased its stake in Freshworks by 120.8% during the first quarter. Royal Bank of Canada now owns 21,388 shares of the company's stock worth $302,000 after acquiring an additional 11,703 shares during the last quarter. Amundi grew its holdings in shares of Freshworks by 1.3% during the 1st quarter. Amundi now owns 80,074 shares of the company's stock worth $1,049,000 after purchasing an additional 1,040 shares during the period. Goldman Sachs Group Inc. grew its holdings in shares of Freshworks by 35.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,225,056 shares of the company's stock worth $31,396,000 after purchasing an additional 578,628 shares during the period. Woodline Partners LP increased its position in Freshworks by 13.5% during the 1st quarter. Woodline Partners LP now owns 21,569 shares of the company's stock worth $304,000 after purchasing an additional 2,571 shares in the last quarter. Finally, Focus Partners Wealth raised its holdings in Freshworks by 20.2% in the first quarter. Focus Partners Wealth now owns 12,399 shares of the company's stock valued at $175,000 after buying an additional 2,086 shares during the period. Institutional investors and hedge funds own 75.58% of the company's stock.

Freshworks Company Profile

Freshworks Inc NASDAQ: FRSH develops cloud-based software designed to help businesses manage customer and employee experiences. Its platform is intended for organizations of various sizes and combines tools for customer support, IT service management, sales, marketing and other business functions.

The company's product portfolio includes Freshdesk for customer service and support, Freshservice for IT and employee service management, Freshsales for customer relationship management, and Freshmarketer for marketing automation and optimization.

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