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

Freshworks Inc. (NASDAQ:FRSH) gapped down before the market opened on Thursday after Canaccord Genuity Group lowered their price target on the stock from $27.00 to $20.00. The stock had previously closed at $18.25, but opened at $13.40. Canaccord Genuity Group currently has a buy rating on the stock. Freshworks shares last traded at $13.60, with a volume of 6,525,174 shares changing hands.

A number of other equities analysts have also recently commented on FRSH. Cantor Fitzgerald decreased their target price on Freshworks from $25.00 to $19.00 and set an “overweight” rating on the stock in a report on Thursday. Barclays cut their price objective on Freshworks from $20.00 to $15.00 and set an “equal weight” rating for the company in a research note on Friday. Oppenheimer downgraded shares of Freshworks from an “outperform” rating to a “market perform” rating in a report on Thursday. Morgan Stanley decreased their price objective on shares of Freshworks from $22.00 to $18.00 and set an “equal weight” rating on the stock in a research report on Thursday. Finally, Jefferies Financial Group upgraded Freshworks from a “hold” rating to a “buy” rating and increased their price target for the stock from $20.00 to $30.00 in a research note on Friday, January 5th. Eight research analysts have rated the stock with a hold rating and ten have given a buy rating to the stock. According to MarketBeat.com, Freshworks currently has a consensus rating of “Moderate Buy” and an average target price of $22.59.

Insider Activity at Freshworks

In other news, CEO Rathnagirish Mathrubootham sold 430,149 shares of the business’s stock in a transaction dated Monday, February 26th. The shares were sold at an average price of $20.44, for a total value of $8,792,245.56. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In other Freshworks 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 value of $94,831.80. Following the transaction, the director now owns 17,387 shares in the company, valued at $351,565.14. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Rathnagirish Mathrubootham sold 430,149 shares of the firm’s stock in a transaction dated Monday, February 26th. The shares were sold at an average price of $20.44, for a total transaction 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 over the last three months. 19.15% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Freshworks

Several institutional investors and hedge funds have recently bought and sold shares of the company. Neo Ivy Capital Management acquired a new stake in shares of Freshworks in the 3rd quarter worth $81,000. Quest Partners LLC acquired a new position in shares of Freshworks during the fourth quarter valued at about $166,000. Steph & Co. purchased a new position in shares of Freshworks in the 1st quarter valued at approximately $201,000. Jasper Ridge Partners L.P. acquired a new stake in Freshworks in the 3rd quarter worth approximately $217,000. Finally, Northside Capital Management LLC purchased a new stake in Freshworks during the 4th quarter worth approximately $226,000. 75.58% of the stock is owned by hedge funds and other institutional investors.

Freshworks Stock Performance

The stock’s 50 day simple moving average is $18.29 and its 200-day simple moving average is $19.97. The firm has a market cap of $4.18 billion, a price-to-earnings ratio of -35.07 and a beta of 0.88.

Freshworks (NASDAQ:FRSH) last issued its earnings results on Tuesday, February 6th. The company reported ($0.09) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.04. The company had revenue of $160.11 million during the quarter, compared to analyst estimates of $158.11 million. Freshworks had a negative return on equity of 10.70% and a negative net margin of 18.93%. On average, analysts expect that Freshworks Inc. will post -0.37 EPS for the current fiscal year.

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.