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

Freshworks Inc. (NASDAQ:FRSH) shares gapped up prior to trading 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) EPS for the quarter, topping analysts’ consensus estimates of ($0.10) by $0.01. Freshworks had a negative net margin of 15.72% and a negative return on equity of 9.08%. The firm had revenue of $186.58 million for the quarter, compared to analyst estimates of $181.50 million.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on FRSH. Scotiabank lowered their price target on Freshworks from $18.00 to $16.00 and set a “sector perform” rating for the company in a report on Wednesday, July 31st. Barclays cut their price target on Freshworks from $15.00 to $14.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 31st. Piper Sandler increased their price objective on Freshworks from $13.00 to $18.00 and gave the stock an “overweight” rating in a report on Thursday. Jefferies Financial Group cut their target price on Freshworks from $25.00 to $20.00 and set a “buy” rating on the stock in a research note on Wednesday, July 31st. Finally, JPMorgan Chase & Co. decreased their price target on Freshworks from $19.00 to $17.00 and set an “overweight” rating for the company in a research note on Wednesday, July 31st. Seven analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $17.92.

Insider Buying and Selling at Freshworks

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 transaction of $52,668.70. Following the completion of the sale, the director now directly owns 35,853 shares in the company, valued at $402,629.19. The trade was a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In related news, Director Jennifer H. Taylor sold 4,690 shares of Freshworks stock in a transaction on Monday, August 12th. The shares were 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 owns 35,853 shares of the company’s stock, valued at approximately $402,629.19. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Zachary Nelson sold 8,433 shares of the company’s stock in a transaction on Tuesday, September 3rd. The stock was sold at an average price of $11.54, for a total transaction of $97,316.82. Following the completion of the sale, the director now owns 22,530 shares of the company’s stock, valued at $259,996.20. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 46,456 shares of company stock valued at $530,102 in the last quarter. Company insiders own 19.15% of the company’s stock.

Institutional Investors Weigh In On Freshworks

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Advisors Asset Management Inc. grew its holdings in Freshworks by 34.2% in the 1st quarter. Advisors Asset Management Inc. now owns 2,971 shares of the company’s stock valued at $54,000 after buying an additional 757 shares during the last quarter. California State Teachers Retirement System grew its position in Freshworks by 0.5% in the 1st quarter. California State Teachers Retirement System now owns 161,706 shares of the company’s stock worth $2,945,000 after purchasing an additional 831 shares during the last quarter. Allspring Global Investments Holdings LLC increased its holdings in shares of Freshworks by 9.2% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 13,755 shares of the company’s stock worth $250,000 after purchasing an additional 1,160 shares during the period. Amalgamated Bank raised its position in shares of Freshworks by 29.1% during the second quarter. Amalgamated Bank now owns 7,054 shares of the company’s stock valued at $90,000 after buying an additional 1,588 shares during the last quarter. Finally, Covestor Ltd lifted its stake in shares of Freshworks by 89.9% in the third quarter. Covestor Ltd now owns 3,599 shares of the company’s stock valued at $41,000 after buying an additional 1,704 shares during the period. 75.58% of the stock is currently owned by institutional investors and hedge funds.

Freshworks Price Performance

The firm has a 50 day moving average of $11.45 and a 200-day moving average of $12.60. The stock has a market capitalization of $4.97 billion, a P/E ratio of -45.74 and a beta of 0.72.

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.