Freshworks (NASDAQ:FRSH) Shares Gap Up on Better-Than-Expected Earnings

Freshworks Inc. (NASDAQ:FRSH) shares gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $13.09, but opened at $15.31. Freshworks shares last traded at $16.12, with a volume of 2,646,341 shares changing hands.

The company reported ($0.09) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.10) by $0.01. The business had revenue of $186.58 million during the quarter, compared to analysts’ expectations of $181.50 million. Freshworks had a negative return on equity of 9.08% and a negative net margin of 15.72%.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on FRSH shares. Barclays lowered their target price on shares of Freshworks from $15.00 to $14.00 and set an “equal weight” rating for the company in a report on Wednesday, July 31st. Scotiabank lowered their target price on shares of Freshworks from $18.00 to $16.00 and set a “sector perform” rating on the stock in a research note on Wednesday, July 31st. Jefferies Financial Group reduced their target price on Freshworks from $25.00 to $20.00 and set a “buy” rating on the stock in a research report on Wednesday, July 31st. Cantor Fitzgerald dropped their target price on shares of Freshworks from $19.00 to $18.00 and set an “overweight” rating on the stock in a research report on Wednesday, July 31st. Finally, Robert W. Baird lowered their target price on shares of Freshworks from $16.00 to $15.00 and set a “neutral” rating on the stock in a research report on Thursday. Seven research analysts have rated the stock with a hold rating and eight have given a buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $18.69.

Insider Activity

In other news, Director Jennifer H. Taylor sold 4,690 shares of Freshworks stock in a transaction dated Monday, August 12th. The stock was sold at an average price of $11.23, for a total value of $52,668.70. Following the completion of the transaction, the director now directly owns 35,853 shares of the company’s stock, valued at approximately $402,629.19. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. In other news, Director Zachary Nelson sold 8,433 shares of Freshworks stock in a transaction on Monday, November 4th. The stock was sold at an average price of $12.19, for a total transaction of $102,798.27. Following the sale, the director now directly owns 23,497 shares in the company, valued at $286,428.43. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Jennifer H. Taylor sold 4,690 shares of the firm’s stock in a transaction on Monday, August 12th. The stock was sold at an average price of $11.23, for a total value of $52,668.70. Following the completion of the sale, the director now directly owns 35,853 shares of the company’s stock, valued at $402,629.19. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 40,153 shares of company stock worth $459,383. Insiders own 19.15% of the company’s stock.

Hedge Funds Weigh In On Freshworks

Several hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. grew its position in Freshworks by 6.8% during the first quarter. Vanguard Group Inc. now owns 21,171,044 shares of the company’s stock worth $385,525,000 after buying an additional 1,354,530 shares in the last quarter. Sei Investments Co. lifted its stake in Freshworks by 191.9% during the second quarter. Sei Investments Co. now owns 95,846 shares of the company’s stock worth $1,216,000 after purchasing an additional 63,006 shares during the last quarter. ProShare Advisors LLC lifted its stake in shares of Freshworks by 8.5% in the 1st quarter. ProShare Advisors LLC now owns 29,127 shares of the company’s stock valued at $530,000 after acquiring an additional 2,293 shares during the last quarter. Marshall Wace LLP bought a new stake in shares of Freshworks in the 2nd quarter valued at about $1,740,000. Finally, Canada Pension Plan Investment Board lifted its stake in shares of Freshworks by 41.3% in the 2nd quarter. Canada Pension Plan Investment Board now owns 505,400 shares of the company’s stock valued at $6,414,000 after acquiring an additional 147,700 shares during the last quarter. 75.58% of the stock is currently owned by hedge funds and other institutional investors.

Freshworks Stock Performance

The business has a 50-day simple moving average of $11.55 and a 200 day simple moving average of $12.63. The firm has a market cap of $5.08 billion, a P/E ratio of -49.47 and a beta of 0.72.

Freshworks Company Profile

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.