Freshworks Inc. (NASDAQ:FRSH) finished Wednesday with an addition of $0.41 to close at $22.31, an upside of 1.87 percent. An average of 2,460,241 shares of common stock have been traded in the last five days. There was a gain of $0.87 in the past week, and it reached a new high 10 times over the past 12 months. The last 20 days have seen an average of 2,789,595 shares traded, while the 50-day average volume stands at 2,954,960.
FRSH stock has increased by 28.14% in the last month. The company shares reached their 1-month lowest point of $16.60 on 07/11/23. With the stock rallying to its 52-week high on 08/02/23, shares of the company touched a low of $11.92 and a high of $23.09 in 52 weeks. It has reached a new high 12 times so far this year and achieved 51.67% or $7.54 in price. In spite of this, the price is down -3.38% from the 52-week high.
Insider Transactions
FRSH stock investors should be aware that Freshworks Inc. (FRSH) stock had its last reported insider trading activity 3 days ago on Aug 07. In this transaction, the insider spent $3,547,060. Chief Financial Officer, Sloat Tyler, disposed of 167,000 shares at a price of $21.25 on Aug 04. The insider now owns more than $3,548,750 worth of shares. Prior to that, Director PADGETT BARRY L. went on to Sale 6,566 shares at $21.20 each on Aug 04. An amount of $139,199 was transacted.
Valuation Metrics
Freshworks Inc. (FRSH) stock’s beta is 0.78. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 12.19, the price-to-book (PB) ratio at 6.16, and the price-to-cash flow ratio at 277.75.
Financial Health
The quick ratio of Freshworks Inc. for the three months ended June 29 was 4.50, and the current ratio was 4.50, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending June 29. Freshworks Inc.’s EBITDA margin for the year ending June 29 is -43.31%, while its operating margin for the same period stands at -38.60%. Its gross profit as reported stood at $402.23 million compared to revenue of $498.0 million.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Freshworks Inc.’s return on assets was -13.90%.
Earnings Surprise
For the three-month period that ended June 29, Freshworks Inc. had $804.65 million in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$35.66 million in the quarter, while revenues of -$42.66 million were shrunk -95.6%. The analyst consensus anticipated Freshworks Inc.’s latest quarter earnings to come in at $0.02 per share, but it turned out to be $0.07, a 250.00% surprise. For the quarter, EBITDA amounted to -$38.74 million. Shareholders own equity worth $293.57 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Freshworks Inc. (FRSH) price momentum. RSI 9-day as of the close on 09 August was 76.60%, suggesting the stock is Overbought, with historical volatility in this time frame at 88.06%.
As of today, FRSH’s price is $21.65 +4.05% or $0.87 from its 5-day moving average. FRSH is currently trading +26.03% higher than its 20-day SMA and +62.02% higher than its 100-day SMA. However, the stock’s current price level is +49.80% above the SMA50 and +68.14% above the SMA200.
The stochastic %K and %D were 81.10% and 77.58%, respectively, and the average true range (ATR) was 1.03. With the 14-day stochastic at 86.96% and the average true range at 0.96, the RSI (14) stands at 73.80%. The stock has reached 0.96 on the 9-day MACD Oscillator while the 14-day reading was at 2.28.
Analyst Ratings
Canaccord Genuity upgraded Freshworks Inc. (NASDAQ: FRSH) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Hold. The consensus rating for Freshworks Inc. (FRSH) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell FRSH, while 8 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 9 others rate it as a “buy”.
What is FRSH’s price target for the next 12 months?
Analysts predict a range of price targets between $19.00 and $27.00, with a median target of $23.00. Taking a look at these predictions, the average price target given by analysts for Freshworks Inc. (FRSH) stock is $22.94.
