Freshworks (NASDAQ:FRSH) Shares Gap Down Following Analyst Downgrade

Freshworks Inc. (NASDAQ:FRSH)’s share price gapped down before the market opened on Thursday after Piper Sandler lowered their price target on the stock from $28.00 to $22.00. The stock had previously closed at $18.25, but opened at $13.40. Piper Sandler currently has an overweight rating on the stock. Freshworks shares last traded at $13.60, with a volume of 6,525,174 shares.

FRSH has been the topic of several other research reports. Oppenheimer downgraded Freshworks from an “outperform” rating to a “market perform” rating in a research note on Thursday. Wolfe Research upgraded Freshworks from a “peer perform” rating to an “outperform” rating and set a $27.00 target price for the company in a report on Tuesday, February 20th. Jefferies Financial Group upgraded Freshworks from a “hold” rating to a “buy” rating and increased their target price for the stock from $20.00 to $30.00 in a report on Friday, January 5th. JMP Securities increased their target price on Freshworks from $25.00 to $29.00 and gave the stock a “market outperform” rating in a report on Wednesday, February 7th. Finally, Cantor Fitzgerald reiterated an “overweight” rating and set a $25.00 target price on shares of Freshworks in a report on Wednesday, February 7th. Eight research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $24.24.

Insider Activity

In related news, CEO Rathnagirish Mathrubootham sold 430,149 shares of Freshworks stock in a transaction dated Monday, February 26th. The stock was sold at an average price of $20.44, for a total transaction of $8,792,245.56. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In related news, Director Barry L. Padgett sold 4,690 shares of Freshworks stock in a transaction dated Friday, March 1st. The stock was sold at an average price of $20.22, for a total transaction of $94,831.80. Following the completion of the transaction, the director now owns 17,387 shares in the company, valued at $351,565.14. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Rathnagirish Mathrubootham sold 430,149 shares of Freshworks stock in a transaction dated Monday, February 26th. The stock was sold at an average price of $20.44, for a total value of $8,792,245.56. The disclosure for this sale can be found here. Insiders sold 460,792 shares of company stock worth $9,408,403 in the last quarter. Corporate insiders own 19.15% of the company’s stock.

Institutional Investors Weigh In On Freshworks

Several hedge funds have recently bought and sold shares of the stock. Private Advisor Group LLC acquired a new stake in Freshworks during the first quarter worth approximately $685,000. Allspring Global Investments Holdings LLC lifted its position in Freshworks by 9.2% during the first quarter. Allspring Global Investments Holdings LLC now owns 13,755 shares of the company’s stock worth $250,000 after acquiring an additional 1,160 shares during the last quarter. Steph & Co. acquired a new stake in Freshworks during the first quarter worth approximately $201,000. Renaissance Capital LLC lifted its position in Freshworks by 3.0% during the first quarter. Renaissance Capital LLC now owns 105,697 shares of the company’s stock worth $1,925,000 after acquiring an additional 3,071 shares during the last quarter. Finally, Vanguard Group Inc. raised its position in shares of Freshworks by 6.9% in the fourth quarter. Vanguard Group Inc. now owns 19,816,514 shares of the company’s stock valued at $465,490,000 after buying an additional 1,285,713 shares in the last quarter. 75.58% of the stock is currently owned by institutional investors and hedge funds.

Freshworks Price Performance

The business’s 50-day moving average price is $18.53 and its two-hundred day moving average price is $20.04. The company has a market capitalization of $3.99 billion, a price-to-earnings ratio of -29.51 and a beta of 0.87.

Freshworks (NASDAQ:FRSH) last announced its quarterly earnings data on Tuesday, February 6th. The company reported ($0.09) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.04. The business had revenue of $160.11 million for the quarter, compared to analysts’ expectations of $158.11 million. Freshworks had a negative net margin of 23.04% and a negative return on equity of 12.55%. As a group, research analysts predict that Freshworks Inc. will post -0.37 EPS for the current year.

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.