Freshworks (NASDAQ:FRSH) Shares Gap Up After Strong 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 trading 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 during the quarter, compared to analysts’ expectations of $181.50 million.

Wall Street Analyst Weigh In

Several research analysts have issued reports on FRSH shares. Barclays dropped their price objective on Freshworks from $15.00 to $14.00 and set an “equal weight” rating for the company in a research note on Wednesday, July 31st. Wells Fargo & Company began coverage on shares of Freshworks in a report on Wednesday, October 16th. They set an “equal weight” rating and a $11.00 price target for the company. Jefferies Financial Group cut their price target on Freshworks from $25.00 to $20.00 and set a “buy” rating for the company in a report on Wednesday, July 31st. JPMorgan Chase & Co. lowered their price objective on shares of Freshworks from $19.00 to $17.00 and set an “overweight” rating for the company in a research report on Wednesday, July 31st. Finally, Cantor Fitzgerald reduced 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. Seven equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $17.92.

Insider Buying and Selling at Freshworks

In related news, Director Zachary Nelson sold 8,433 shares of the firm’s stock in a transaction on Monday, November 4th. The shares were sold at an average price of $12.19, for a total value of $102,798.27. Following the completion of the transaction, the director now owns 23,497 shares of the company’s stock, valued at approximately $286,428.43. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. In related news, Director Jennifer H. Taylor sold 4,690 shares of the firm’s stock in a transaction dated Thursday, October 10th. The shares were sold at an average price of $11.06, for a total value of $51,871.40. Following the completion of the sale, the director now directly owns 36,689 shares in the company, valued at approximately $405,780.34. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Zachary Nelson sold 8,433 shares of the business’s stock in a transaction that occurred on Monday, November 4th. The stock was sold at an average price of $12.19, for a total value of $102,798.27. Following the transaction, the director now directly owns 23,497 shares in the company, valued at approximately $286,428.43. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 46,456 shares of company stock valued at $530,102. Company insiders own 19.15% of the company’s stock.

Institutional Investors Weigh In On Freshworks

A number of large investors have recently added to or reduced their stakes in FRSH. Blue Trust Inc. raised its holdings in Freshworks by 1,987.3% in the 3rd quarter. Blue Trust Inc. now owns 2,964 shares of the company’s stock valued at $38,000 after acquiring an additional 2,822 shares during the period. Covestor Ltd increased its stake in shares of Freshworks by 89.9% during the third quarter. Covestor Ltd now owns 3,599 shares of the company’s stock worth $41,000 after purchasing an additional 1,704 shares during the period. CWM LLC boosted its stake in Freshworks by 554.5% in the 2nd quarter. CWM LLC now owns 3,397 shares of the company’s stock valued at $43,000 after purchasing an additional 2,878 shares during the period. 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 in the last quarter. Finally, Quarry LP increased its position in Freshworks by 157.6% during the 2nd quarter. Quarry LP now owns 4,323 shares of the company’s stock worth $55,000 after buying an additional 2,645 shares during the period. Institutional investors own 75.58% of the company’s stock.

Freshworks Stock Performance

The stock has a market cap of $4.97 billion, a P/E ratio of -45.74 and a beta of 0.72. The stock’s fifty day simple moving average is $11.45 and its 200-day simple moving average is $12.60.

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.