Freshworks (NASDAQ:FRSH) Stock Rating Raised to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Freshworks (NASDAQ:FRSH) from a hold rating to a strong-buy rating in a research note released on Thursday morning,Zacks reports.

Several other research firms have also weighed in on FRSH. Guggenheim assumed coverage on shares of Freshworks in a report on Wednesday, July 22nd. They set a “buy” rating and a $25.00 price objective for the company. Piper Sandler boosted their target price on Freshworks from $12.00 to $15.00 and gave the stock a “neutral” rating in a report on Wednesday. Wells Fargo & Company reissued an “overweight” rating on shares of Freshworks in a report on Thursday. Oppenheimer restated a “market perform” rating on shares of Freshworks in a research report on Wednesday. Finally, Weiss Ratings raised Freshworks from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, September 29th. Two equities research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, Freshworks currently has an average rating of “Moderate Buy” and an average price target of $15.92.

Freshworks Stock Performance

Shares of NASDAQ:FRSH traded down $0.59 during midday trading on Thursday, reaching $12.11. 5,446,919 shares of the company’s stock were exchanged, compared to its average volume of 7,619,666. The firm has a market capitalization of $3.16 billion, a PE ratio of 16.59, a price-to-earnings-growth ratio of 9.47 and a beta of 0.80. Freshworks has a 12 month low of $6.79 and a 12 month high of $15.51. The company’s 50 day simple moving average is $13.45 and its two-hundred day simple moving average is $10.50.

Freshworks (NASDAQ:FRSH) last released its quarterly earnings data on Tuesday, November 3rd. The company reported $0.22 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.04. Freshworks had a return on equity of 5.52% and a net margin of 20.49%. The company had revenue of $245.43 million for the quarter, compared to analyst estimates of $245.06 million. During the same period in the prior year, the company posted $0.16 EPS. The company’s revenue was up 14.1% compared to the same quarter last year. On average, research analysts anticipate that Freshworks will post 0.06 earnings per share for the current year.

Insider Buying and Selling

In other Freshworks news, CAO Philippa Lawrence sold 3,492 shares of the firm’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $12.98, for a total value of $45,326.16. Following the completion of the sale, the chief accounting officer owned 379,639 shares in the company, valued at approximately $4,927,714.22. This trade represents a 0.91% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 8.54% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Freshworks

Several large investors have recently made changes to their positions in FRSH. Aberdeen Group plc bought a new stake in Freshworks during the 3rd quarter worth about $1,791,000. Russell Investments Group Ltd. raised its stake in shares of Freshworks by 11.6% during the third quarter. Russell Investments Group Ltd. now owns 230,498 shares of the company’s stock worth $2,929,000 after buying an additional 23,998 shares during the last quarter. Jefferies Financial Group Inc. acquired a new position in Freshworks in the third quarter valued at approximately $1,714,000. Fulcrum Asset Management LLP lifted its holdings in Freshworks by 42,179.1% in the third quarter. Fulcrum Asset Management LLP now owns 117,536 shares of the company’s stock valued at $1,479,000 after buying an additional 117,258 shares during the period. Finally, Allspring Global Investments Holdings LLC grew its holdings in Freshworks by 3.9% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 130,060 shares of the company’s stock worth $1,710,000 after acquiring an additional 4,899 shares during the period. Institutional investors and hedge funds own 75.58% of the company’s stock.

Freshworks Company Profile

Freshworks Inc (NASDAQ:FRSH) develops cloud-based customer and employee engagement software for businesses of various sizes. Its products are designed to help organizations manage customer support, IT service operations, sales activities, and marketing workflows through user-friendly, artificial intelligence-enabled applications.

The company’s product portfolio includes Freshdesk for customer service and support, Freshservice for IT and enterprise service management, Freshsales for customer relationship management, and Freshmarketer for marketing automation and customer engagement.