Freshworks (NASDAQ:FRSH) Shares Surge After Positive Earnings Report

Freshworks Inc. (NASDAQ:FRSH) experienced a notable increase in share price during pre-market trading on Thursday, following the announcement of earnings that surpassed analysts' expectations. The stock, which had previously closed at $13.09, opened significantly higher at $15.31 and was last seen trading at $16.12. The total trading volume reached 2,646,341 shares.

• Freshworks benefits from its AI customer engagement platform.

In its latest earnings report, Freshworks posted an earnings per share (EPS) of ($0.09) for the quarter, which exceeded the consensus estimate of ($0.10) by a margin of $0.01. Despite this positive performance, the company reported a negative net margin of 15.72% and a negative return on equity of 9.08%. Freshworks generated a revenue of $186.58 million for the quarter, surpassing the analysts' expectations of $181.50 million.

Analyst Opinions on Freshworks

Several financial analysts and brokerage firms have recently updated their assessments of Freshworks. Scotiabank reduced their price target for the company from $18.00 to $16.00 while maintaining a "sector perform" rating in a report released on July 31st. Barclays also downgraded their price target from $15.00 to $14.00 and assigned an "equal weight" rating to the stock on the same date. Conversely, Piper Sandler upgraded their price target from $13.00 to $18.00 and gave the stock an "overweight" rating in a report on Thursday. In another adjustment, Jefferies Financial Group decreased their target price from $25.00 to $20.00 while keeping a "buy" rating for the stock. Finally, JPMorgan Chase lowered their price target from $19.00 to $17.00 but maintained an "overweight" rating. Overall, seven analysts currently rate the stock as a hold, while eight have issued a buy rating. According to MarketBeat data, the consensus rating stands at "Moderate Buy" with a target price of $17.92.

• Five exciting tech companies poised for a bullish rebound.

Check out the latest stock report on FRSH.

Insider Activity at Freshworks

In related news, Director Jennifer H. Taylor sold 4,690 shares of Freshworks stock in a transaction dated August 12th, at an average price of $11.23, totaling $52,668.70. Post-sale, she holds 35,853 shares valued at approximately $402,629.19 in the company, indicating no change in her ownership percentage. This transaction was disclosed to the Securities and Exchange Commission (SEC). Additionally, Director Zachary Nelson sold 8,433 shares of the company in a transaction dated September 3rd, at an average price of $11.54 for a total of $97,316.82. Following this sale, he owns 22,530 shares valued at about $259,996.20, also reflecting no change in his ownership percentage. In the most recent quarter, insiders sold a total of 46,456 shares worth $530,102, with company insiders holding 19.15% of the total shares.

Institutional Investment Trends

• Top analyst calls for September.

Numerous institutional investors and hedge funds have either increased or decreased their stake in Freshworks. Advisors Asset Management Inc. has raised its holdings by 34.2% in the first quarter, now owning 2,971 shares of the stock valued at $54,000 after purchasing 757 additional shares. Meanwhile, the California State Teachers Retirement System increased its position by 0.5%, owning 161,706 shares valued at $2,945,000 after buying an extra 831 shares. Allspring Global Investments also boosted its holdings by 9.2%, now owning 13,755 shares worth $250,000 after acquiring 1,160 additional shares. Additionally, Amalgamated Bank raised its stake by 29.1% during the second quarter. Currently, about 75.58% of Freshworks shares are held by institutional investors and hedge funds.

Freshworks Stock Performance Overview

The company's stock has a 50-day moving average of $11.45 and a 200-day moving average of $12.60. Freshworks boasts a market capitalization of $4.97 billion, a P/E ratio of -45.74, and a beta of 0.72.

About Freshworks Inc.

Freshworks Inc. is a software development company that specializes in providing Software-as-a-Service (SaaS) products on a global scale. Its offerings include the Freshworks Customer Service Suite, which enables automated, personalized self-service across multiple platforms including web, chat, mobile messaging, email, and social media. Other notable solutions include Freshdesk, a ticketing-focused customer service platform, Freshsuccess for customer success management, and Freshchat, which enhances agents' capabilities to engage with customers across various digital messaging channels.

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This article has been created using data and analysis to present readers with prompt and accurate information regarding Freshworks.

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