Diversified Trust Co Reduces Stake in Freshworks Inc.

Diversified Trust Co has reportedly decreased its position in shares of Freshworks Inc. (NASDAQ:FRSH) by 56.0% during the third quarter. This information comes from their latest Form 13F filing with the Securities and Exchange Commission (SEC). After selling 31,950 shares during this time, the firm now holds 25,076 shares of Freshworks, with a total value of approximately $288,000.

Other institutional investors have also adjusted their holdings in Freshworks. For instance, Advisors Asset Management Inc. increased its stake by 34.2% in the first quarter, owning 2,971 shares now after acquiring 757 additional shares. Similarly, the California State Teachers Retirement System raised its position by 0.5%, bringing their total to 161,706 shares valued at $2,945,000 after purchasing 831 shares. Additionally, Allspring Global Investments Holdings LLC reported a 9.2% increase in its holdings, now owning 13,755 shares worth $250,000 after an increase of 1,160 shares.

Amalgamated Bank also enhanced its stake by 29.1%, now owning 7,054 shares valued at $90,000 after buying 1,588 more shares. ProShare Advisors LLC boosted its holdings by 8.5%, owning 29,127 shares worth approximately $530,000 after acquiring an additional 2,293 shares. Overall, institutional investors hold 75.58% of Freshworks’ stock.

Analyst Ratings and Price Targets

A number of Wall Street analysts have assessed Freshworks recently. Piper Sandler reduced their target price from $17.00 to $13.00, opting for an “overweight” rating. Meanwhile, JPMorgan Chase & Co. also cut their price from $19.00 to $17.00 while maintaining an “overweight” stance. Barclays lowered its target from $15.00 to $14.00, assigning an “equal weight” rating. Conversely, Needham & Company LLC reaffirmed a “buy” rating and set an elevated price target of $20.00. Cantor Fitzgerald further adjusted their target down from $19.00 to $18.00, continuing to rate the stock as “overweight.” In total, six analysts rated the stock as a hold while nine rated it as a buy, leading to a consensus rating of “Moderate Buy” and an average price target of $18.38 as per MarketBeat.com.

Current Stock Performance

As of the latest trading session, Freshworks opened at $11.47. The stock has seen fluctuations with a 12-month low of $10.81 and a high of $24.98. The fifty-day moving average price currently stands at $11.39, while the 200-day moving average price is $13.42. Freshworks has a market capitalization of $3.43 billion and a price-to-earnings ratio of -28.68, along with a beta of 0.73.

Regarding its earnings, Freshworks last released quarterly results on July 30, 2024, reporting an earnings per share (EPS) of $0.08. This performance exceeded expectations, as analysts had estimated a figure of $0.06. The company experienced a 20.0% revenue growth year-over-year, with a revenue of $174.13 million compared to predictions of $169.05 million. Analysts forecast that Freshworks will report an EPS of -0.38 in the current year.

Insider Activity

In recent insider transactions, Director Zachary Nelson sold 8,442 shares at an average price of $11.60, totaling approximately $97,927. His remaining shares stand at 22,530, valued at around $261,348. Another Director, Roxanne S. Austin, sold 6,303 shares at an average price of $11.22, with her remaining shares valued at about $2,503,249. Overall, insiders have sold a total of 47,245 shares valued at $533,811 in the last three months, with corporate insiders owning 19.15% of the company’s stock.

Company Overview

Freshworks Inc. is a software development company that provides a variety of software-as-a-service products to clients worldwide. Its offerings include the Freshworks Customer Service Suite, which automates customer service across multiple channels like chat, email, and social media. Other notable products are Freshdesk for customer service, Freshsuccess for customer management, and Freshchat for engaged digital messaging experiences.

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