Freshworks (NASDAQ:FRSH) Raised to “Strong-Buy” at Zacks Research

Freshworks (NASDAQ:FRSH) was upgraded by investment analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Monday,Zacks.com reports.

FRSH has been the subject of several other research reports. Piper Sandler increased their price target on Freshworks from $22.00 to $25.00 and gave the company an “overweight” rating in a research note on Wednesday, July 30th. Needham & Company LLC reissued a “buy” rating and issued a $25.00 price target on shares of Freshworks in a research note on Friday, September 12th. Robert W. Baird decreased their price target on Freshworks from $18.00 to $16.00 and set a “neutral” rating for the company in a research note on Monday, September 15th. Wells Fargo & Company assumed coverage on Freshworks in a research note on Tuesday. They issued a “cautious” rating for the company. Finally, JMP Securities reissued a “market outperform” rating and issued a $27.00 price target on shares of Freshworks in a research note on Friday, September 12th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Freshworks currently has a consensus rating of “Moderate Buy” and a consensus target price of $20.00.

Freshworks Stock Down 4.8%

Shares of FRSH opened at $11.77 on Monday. Freshworks has a 12-month low of $10.81 and a 12-month high of $19.77. The business has a 50-day simple moving average of $13.12 and a two-hundred day simple moving average of $14.03. The stock has a market cap of $3.43 billion, a PE ratio of -65.39 and a beta of 0.94.

Freshworks (NASDAQ:FRSH) last issued its earnings results on Tuesday, July 29th. The company reported $0.18 earnings per share (EPS) 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 business had revenue of $204.68 million during the quarter, compared to analysts’ expectations of $198.85 million. During the same quarter in the prior year, the firm earned $0.08 EPS. 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. On average, equities research analysts expect that Freshworks will post -0.19 EPS for the current year.

Insiders Place Their Bets

In other Freshworks news, CAO Philippa Lawrence sold 2,590 shares of the stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $12.53, for a total value of $32,452.70. Following the transaction, the chief accounting officer owned 415,949 shares in the company, valued at approximately $5,211,840.97. This represents a 0.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Zachary Nelson sold 8,433 shares of the stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $13.14, for a total value of $110,809.62. Following the completion of the transaction, the director owned 38,870 shares in the company, valued at approximately $510,751.80. The trade was a 17.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 45,148 shares of company stock worth $591,559 in the last quarter. 11.17% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Principal Financial Group Inc. boosted its holdings in Freshworks by 2,786.7% in the first quarter. Principal Financial Group Inc. now owns 512,875 shares of the company’s stock worth $7,237,000 after acquiring an additional 495,108 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in Freshworks by 2.0% in the first quarter. Charles Schwab Investment Management Inc. now owns 1,642,290 shares of the company’s stock worth $23,173,000 after acquiring an additional 32,333 shares in the last quarter. Pier 88 Investment Partners LLC bought a new position in Freshworks in the first quarter worth approximately $675,000. WCM Investment Management LLC bought a new position in shares of Freshworks in the first quarter valued at approximately $13,426,000. Finally, New York State Common Retirement Fund lifted its holdings in shares of Freshworks by 75.8% in the first quarter. New York State Common Retirement Fund now owns 489,511 shares of the company’s stock valued at $6,907,000 after purchasing an additional 211,102 shares in the last quarter. Institutional investors own 75.58% of the company’s stock.

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.