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

Freshworks Inc. (NASDAQ:FRSH - Get Free Report) gapped up before the market opened on Thursday following a stronger than expected earnings report. 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.

The company reported ($0.09) earnings per share for the quarter, topping the consensus estimate of ($0.10) by $0.01. The business had revenue of $186.58 million during the quarter, compared to analysts' expectations of $181.50 million. Freshworks had a negative return on equity of 9.08% and a negative net margin of 15.72%.

Wall Street Analysts Forecast Growth

FRSH has been the subject of a number of recent research reports. Jefferies Financial Group reduced their price objective on shares of Freshworks from $25.00 to $20.00 and set a "buy" rating for the company in a research note on Wednesday, July 31st. Needham & Company LLC restated a "buy" rating and set a $20.00 price objective on shares of Freshworks in a research note on Thursday. Wells Fargo & Company lifted their target price on Freshworks from $11.00 to $14.00 and gave the company an "equal weight" rating in a research note on Thursday. Piper Sandler raised their price target on shares of Freshworks from $13.00 to $18.00 and gave the company an "overweight" rating in a report on Thursday. Finally, JPMorgan Chase & Co. lifted their price objective on shares of Freshworks from $17.00 to $20.00 and gave the stock an "overweight" rating in a research report on Thursday. Seven research analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $18.69.

Insider Transactions at Freshworks

In related news, Director Roxanne S. Austin sold 6,303 shares of the stock in a transaction that occurred on Friday, August 9th. The shares were sold at an average price of $11.22, for a total value of $70,719.66. Following the transaction, the director now owns 223,106 shares in the company, valued at approximately $2,503,249.32. This represents 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 other Freshworks news, Director Jennifer H. Taylor sold 4,690 shares of the business's stock in a transaction that occurred on Monday, August 12th. The stock was sold at an average price of $11.23, for a total value of $52,668.70. Following the completion of the transaction, the director now directly owns 35,853 shares of the company's stock, valued at approximately $402,629.19. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Roxanne S. Austin sold 6,303 shares of the firm's stock in a transaction that occurred on Friday, August 9th. The stock was sold at an average price of $11.22, for a total transaction of $70,719.66. Following the sale, the director now directly owns 223,106 shares in the company, valued at $2,503,249.32. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 46,456 shares of company stock worth $530,102 over the last three months. 19.15% of the stock is currently owned by insiders.

Institutional Trading of Freshworks

A number of hedge funds have recently added to or reduced their stakes in FRSH. Cornercap Investment Counsel Inc. purchased a new position in Freshworks in the third quarter valued at $250,000. GSA Capital Partners LLP raised its holdings in Freshworks by 89.4% in the 3rd quarter. GSA Capital Partners LLP now owns 97,910 shares of the company's stock worth $1,124,000 after purchasing an additional 46,204 shares during the period. Versor Investments LP acquired a new position in Freshworks in the 3rd quarter worth about $383,000. State of New Jersey Common Pension Fund D boosted its position in Freshworks by 19.9% during the third quarter. State of New Jersey Common Pension Fund D now owns 163,392 shares of the company's stock worth $1,876,000 after purchasing an additional 27,139 shares in the last quarter. Finally, Covestor Ltd increased its position 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 in the last quarter. 75.58% of the stock is owned by hedge funds and other institutional investors.

Freshworks Stock Up 28.5 %

The firm has a market capitalization of $5.08 billion, a PE ratio of -47.54 and a beta of 0.72. The stock has a 50-day moving average price of $11.45 and a 200 day moving average price of $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.