Investment firm Oppenheimer has revised its price target for Freshworks (NASDAQ:FRSH) from $19.00 to $18.00, according to a research report published on Thursday by MarketBeat.com. The brokerage maintains an outperform rating on Freshworks shares, reflecting a positive outlook despite the target adjustment.
Several other analysts have also recently evaluated the company’s stock. Notably, Wall Street Zen downgraded Freshworks from a “strong-buy” to a “buy” rating on December 20, 2023. Additionally, Piper Sandler lowered its price target from $25.00 to $20.00 while maintaining an overweight rating on November 7, 2023. Cantor Fitzgerald reiterated its overweight rating on the stock, and UBS Group set a price target of $17.00 with a buy rating on November 14, 2023. Meanwhile, Needham & Company LLC also restated a buy rating on December 15, 2023.
According to MarketBeat, Freshworks currently holds a consensus rating of “Hold” among analysts, with an average price target of $19.15. The stock analysis landscape shows that seven investment analysts recommend a buy, eight suggest holding, and one analyst has issued a sell rating.
Recent Earnings and Insider Activity
Freshworks recently reported its quarterly earnings on November 5, 2023, revealing earnings per share (EPS) of $0.16, surpassing the consensus estimate of $0.13 by $0.03. The company generated revenue of $215.12 million for the quarter, exceeding expectations of $208.80 million. Year-over-year, this revenue reflects a growth of 15.3%. In the corresponding quarter last year, Freshworks had an EPS of $0.11.
Looking ahead, Freshworks has projected its Q4 2025 guidance at an EPS range of $0.100 to $0.120. Analysts predict the company will report approximately -0.19 EPS for the current fiscal year.
In recent insider transactions, CEO Dennis Woodside acquired 176,100 shares of the company on November 10, 2023, at an average price of $11.31 per share, totaling nearly $1.99 million. This acquisition increased his ownership to over 2.1 million shares, valued at approximately $23.88 million. Similarly, insider Tyler Sloat purchased 171,615 shares on November 11, 2023, resulting in a total investment of around $1.99 million and reflecting a 17.55% increase in his position.
Institutional Investment Trends
Recent activities among institutional investors indicate growing interest in Freshworks. Royal Bank of Canada increased its stake by 120.8% in the first quarter, now owning 21,388 shares valued at $302,000. Amundi also raised its position by 1.3%, bringing its total to 80,074 shares valued at $1.05 million.
Notably, Goldman Sachs Group Inc. boosted its stake by 35.1%, now holding 2,225,056 shares worth about $31.40 million. Woodline Partners LP increased its holdings by 13.5%, and Focus Partners Wealth raised its stake by 20.2% during the same period. Overall, institutional investors and hedge funds collectively own about 75.58% of Freshworks stock.
Freshworks, Inc. is recognized as a global leader in cloud-based customer engagement solutions. The company’s offerings are designed to enhance customer support, sales, marketing, and IT service operations. Its flagship product, Freshdesk, provides a comprehensive helpdesk solution, while Freshservice caters to IT service management needs. The platform emphasizes user-friendly interfaces and integrates automation and AI-driven insights to improve operational efficiency and customer satisfaction.
