Freshworks Inc. (NASDAQ:FRSH) saw a downside of -0.67% to close Tuesday at $20.90 after subtracting -$0.14 on the day. The 5-day average trading volume is 2,616,220 shares of the company’s common stock. It has gained $22.45 in the past week and touched a new high 1 time within the past 5 days. An average of 3,119,525 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,056,670.
FRSH’s 1-month performance is 24.33% or $3.93 on its low of $16.61 reached on 07/24/23. The company’s shares have touched a 52-week low of $11.92 and high of $23.09, with the stock’s rally to the 52-week high happening on 08/02/23. YTD, FRSH has achieved 42.08% or $6.19 and has reached a new high 12 times. However, the current price is down -9.48% from the 52-week high price.
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Insider Transactions
FRSH stock investors last saw insider trading activity on Aug 10.Taylor Jennifer H (Director) most recently sold 7,028 shares at $22.34 per share on Aug 10. This transaction cost the insider $157,006. Director, Flower Johanna, sold 4,700 shares at a price of $22.33 on Aug 10. Then, on Aug 09, Director AUSTIN ROXANNE S sold 6,298 shares at a price of $21.47 per share. This transaction amounted to $135,218.
Valuation Metrics
FRSH stock has a beta of 0.76. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 11.08 while the price-to-book (PB) in the most recent quarter is 5.77, with the price to cash flow ratio at 252.53.
Freshworks Inc.’s quick ratio for the period ended June 29 was 4.50, with the current ratio over the same period at 4.50.. In terms of profitability, the gross margin trailing 12 months is 81.70%. The trailing 12-month EBITDA margin is -43.31% while for the period ending June 29, Freshworks Inc.’s operating margin was -38.60%. The firm’s gross profit as reported stood at $402.23 million against revenue of $498.0 million.
Earnings Surprise
For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income shrunk -95.6% to -$35.66 million, while revenue of -$42.66 million was -19.63% off the previous quarter. Analysts expected FRSH to announce $0.02 per share in earnings in its latest quarter, but it posted $0.07, representing a 250.00% surprise. EBITDA for the quarter stood at more than -$38.74 million. FRSH stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 342.65 million, with total debt at $30.03 million. Shareholders hold equity totaling $293.57 million.
Let’s look briefly at Freshworks Inc. (FRSH) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 22 August was 49.65% to suggest the stock is trending Neutral, with historical volatility in this time period at 32.56%.
The stock’s 5-day moving average is $21.31, reflecting a -6.74% or -$1.51 change from its current price. FRSH is currently trading +22.94% above its 20-day SMA, +44.74% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +33.38% and SMA200 by+70.75%.
Stochastic %K and %D was 46.92% and 58.13% and the average true range (ATR) pointed at 0.89. The RSI (14) points at 55.77%, while the 14-day stochastic is at 34.71% with the period’s ATR at 0.88. The stock’s 9-day MACD Oscillator is pointing at -0.73 and -0.59 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for Freshworks Inc. (NASDAQ: FRSH), Canaccord Genuity upgraded it to a Buy rating. They previously had a Hold rating on the stock. Analysts offering their rating for FRSH stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate FRSH as a “sell,”, while 8 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 1 rates the stock as overweight while 9 have offered a “buy” rating.
What is FRSH’s price target for the next 12 months?
Analysts have a consensus price target ranging from a low of $19.00 and a high of $27.00, with their median price target at $23.00. Looking at these predictions, the average price target given by analysts is for Freshworks Inc. (FRSH) stock is $22.94.
