Freshworks (NASDAQ:FRSH) Downgraded to Buy Rating by Wall Street Zen

Freshworks (NASDAQ:FRSH) was downgraded by investment analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a research report issued to clients and investors on Saturday.

A number of other equities analysts have also weighed in on the stock. Cantor Fitzgerald upgraded shares of Freshworks to an “overweight” rating and set a $20.00 price target on the stock in a report on Tuesday, June 3rd. Morgan Stanley boosted their price objective on shares of Freshworks from $14.00 to $18.00 and gave the stock an “equal weight” rating in a report on Thursday, May 1st. Scotiabank boosted their target price on shares of Freshworks from $14.00 to $18.00 and gave the stock a “sector perform” rating in a research report on Wednesday, April 30th. Piper Sandler boosted their price objective on shares of Freshworks from $22.00 to $25.00 and gave the company an “overweight” rating in a research report on Wednesday, July 30th. Finally, JMP Securities restated a “market outperform” rating and issued a $27.00 target price on shares of Freshworks in a research report on Wednesday, April 30th. Eight analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $20.29.

Freshworks Stock Up 5.8%

NASDAQ FRSH opened at $13.97 on Friday. Freshworks has a fifty-two week low of $10.81 and a fifty-two week high of $19.77. The stock has a market cap of $4.07 billion, a price-to-earnings ratio of -77.61 and a beta of 0.94. The business has a fifty day moving average of $14.11 and a 200-day moving average of $14.72.

Freshworks (NASDAQ:FRSH) last released its quarterly earnings results on Tuesday, July 29th. The company reported $0.18 earnings per share for the quarter, topping analysts’ consensus estimates 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 analysts’ expectations of $198.85 million. During the same period in the previous year, the firm posted $0.08 earnings per share. The business’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. As a group, analysts anticipate that Freshworks will post -0.19 EPS for the current year.

Insider Activity at Freshworks

In related news, Director Johanna Flower sold 8,000 shares of the company’s stock in a transaction on Wednesday, July 2nd. The shares were sold at an average price of $14.80, for a total transaction of $118,400.00. Following the completion of the sale, the director directly owned 48,094 shares of the company’s stock, valued at approximately $711,791.20. This represents a 14.26% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Barry L. Padgett sold 7,558 shares of the firm’s stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $15.14, for a total transaction of $114,428.12. Following the transaction, the director directly owned 32,635 shares of the company’s stock, valued at $494,093.90. The trade was a 18.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 200,491 shares of company stock worth $3,101,115 over the last quarter. 11.17% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of FRSH. Eminence Capital LP bought a new position in Freshworks during the 4th quarter worth approximately $86,002,000. Wellington Management Group LLP acquired a new position in Freshworks during the first quarter worth $48,813,000. Nuveen LLC acquired a new position in Freshworks during the first quarter worth $35,129,000. Driehaus Capital Management LLC acquired a new position in Freshworks during the first quarter worth $34,231,000. Finally, Norges Bank bought a new position in shares of Freshworks in the second quarter valued at about $25,113,000. 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.