Freshworks (NASDAQ:FRSH) Shares Down 2.2% – Time to Sell?

Freshworks Inc. (NASDAQ:FRSH) shares traded down 2.2% during mid-day trading on Wednesday . The company traded as low as $11.22 and last traded at $11.26. 245,575 shares changed hands during trading, a decline of 91% from the average session volume of 2,588,377 shares. The stock had previously closed at $11.51.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Needham & Company LLC reaffirmed a “buy” rating and set a $20.00 price target on shares of Freshworks in a research report on Wednesday, July 31st. StockNews.com downgraded Freshworks from a “buy” rating to a “hold” rating in a report on Saturday, June 22nd. Wells Fargo & Company assumed coverage on Freshworks in a research report on Wednesday. They issued an “equal weight” rating and a $11.00 target price for the company. Barclays dropped their target price on Freshworks from $15.00 to $14.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 31st. Finally, Cantor Fitzgerald decreased their price target on Freshworks from $19.00 to $18.00 and set an “overweight” rating for the company in a report on Wednesday, July 31st. Seven investment analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. According to MarketBeat.com, Freshworks has a consensus rating of “Moderate Buy” and an average price target of $17.86.

Freshworks Price Performance

The stock has a market capitalization of $3.39 billion, a price-to-earnings ratio of -28.18 and a beta of 0.73. The firm’s fifty day moving average is $11.40 and its 200-day moving average is $13.23.

Freshworks (NASDAQ:FRSH) last issued its earnings results on Tuesday, July 30th. The company reported $0.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.06 by $0.02. The business had revenue of $174.13 million for the quarter, compared to analyst estimates of $169.05 million. Freshworks had a negative net margin of 15.72% and a negative return on equity of 9.08%. The company’s revenue for the quarter was up 20.0% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.12) EPS. On average, sell-side analysts expect that Freshworks Inc. will post -0.38 EPS for the current year.

Insider Transactions at Freshworks

In related news, Director Zachary Nelson sold 8,442 shares of the company’s stock in a transaction that occurred on Wednesday, October 2nd. The stock was sold at an average price of $11.04, for a total transaction of $93,199.68. Following the sale, the director now directly owns 23,497 shares of the company’s stock, valued at approximately $259,406.88. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In other Freshworks news, Director Jennifer H. Taylor sold 4,690 shares of Freshworks 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 in the company, valued at $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 is available at this link. Also, Director Zachary Nelson sold 8,442 shares of the stock in a transaction that occurred on Wednesday, October 2nd. The stock was sold at an average price of $11.04, for a total value of $93,199.68. Following the sale, the director now owns 23,497 shares in the company, valued at $259,406.88. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 47,245 shares of company stock worth $533,811. 19.15% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Freshworks

Several large investors have recently added to or reduced their stakes in the stock. Capital International Investors acquired a new position in Freshworks during the 1st quarter valued at about $59,311,000. Clearbridge Investments LLC grew its holdings in Freshworks by 107.4% in the 1st quarter. Clearbridge Investments LLC now owns 4,050,733 shares of the company’s stock worth $73,764,000 after buying an additional 2,097,280 shares in the last quarter. Vanguard Group Inc. increased its position in Freshworks by 6.8% in the 1st quarter. Vanguard Group Inc. now owns 21,171,044 shares of the company’s stock valued at $385,525,000 after acquiring an additional 1,354,530 shares during the period. Stanley Laman Group Ltd. bought a new stake in Freshworks during the 2nd quarter valued at $9,133,000. Finally, Lake Street Advisors Group LLC acquired a new position in Freshworks during the 2nd quarter worth $8,717,000. 75.58% of the stock is owned by institutional investors and hedge funds.

About Freshworks

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.