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

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

Analyst Upgrades and Downgrades

FRSH has been the topic of several analyst reports. Cantor Fitzgerald cut their price target 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. Jefferies Financial Group dropped their target price on shares of Freshworks from $25.00 to $20.00 and set a “buy” rating on the stock in a report on Wednesday, July 31st. Canaccord Genuity Group upped their target price on shares of Freshworks from $17.00 to $19.00 and gave the company a “buy” rating in a report on Thursday. Barclays dropped their target price on shares of Freshworks from $15.00 to $14.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 31st. Finally, Wells Fargo & Company increased their price target on shares of Freshworks from $11.00 to $14.00 and gave the company an “equal weight” rating in a report on Thursday. Seven investment analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to data from MarketBeat.com, Freshworks has an average rating of “Moderate Buy” and a consensus target price of $18.69.

Insiders Place Their Bets

In other Freshworks news, Director Zachary Nelson sold 8,442 shares of the stock in a transaction that occurred on Wednesday, October 2nd. The shares were sold at an average price of $11.04, for a total transaction of $93,199.68. Following the transaction, the director now owns 23,497 shares in the company, valued at $259,406.88. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. In related news, Director Jennifer H. Taylor sold 4,685 shares of the stock in a transaction that occurred on Tuesday, September 10th. The shares were sold at an average price of $11.17, for a total transaction of $52,331.45. Following the sale, the director now owns 35,853 shares in the company, valued at approximately $400,478.01. 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. Also, Director Zachary Nelson sold 8,442 shares of the stock in a transaction that occurred on Wednesday, October 2nd. The stock was sold at an average price of $11.04, for a total transaction of $93,199.68. Following the sale, the director now owns 23,497 shares in the company, valued at $259,406.88. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 40,153 shares of company stock worth $459,383 in the last quarter. Corporate insiders own 19.15% of the company’s stock.

Institutional Trading of Freshworks

A number of hedge funds have recently added to or reduced their stakes in FRSH. Capital International Investors acquired a new stake in Freshworks in the first quarter valued at approximately $59,311,000. Clearbridge Investments LLC grew its holdings in shares of Freshworks by 107.4% during the first quarter. Clearbridge Investments LLC now owns 4,050,733 shares of the company’s stock valued at $73,764,000 after buying an additional 2,097,280 shares during the last quarter. Vanguard Group Inc. boosted its holdings 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 purchasing an additional 1,354,530 shares during the last quarter. M&G PLC purchased a new position in Freshworks during the third quarter worth about $9,094,000. Finally, Stanley Laman Group Ltd. purchased a new position in Freshworks during the second quarter worth about $9,133,000. Institutional investors and hedge funds own 75.58% of the company’s stock.

Freshworks Price Performance

The firm has a market capitalization of $4.97 billion, a PE ratio of -48.35 and a beta of 0.72. The firm’s fifty day moving average is $11.64 and its two-hundred day moving average is $12.61.

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.