As of Friday close, Freshworks Inc.’s (NASDAQ:FRSH) stock was down -$0.12, moving down -0.62 percent to $19.38. The average number of shares traded per day over the past five days has been 2,311,960 shares. 3 times new highs have been achieved over the past 5 days, with a -$0.63 fall in that time frame. In the last twenty days, the average volume was 3,107,225, while in the previous 50 days, it was 2,903,092.
Since last month, FRSH stock retreated -6.78%. Shares of the company fell to $19.21 on 09/21/23, the lowest level in the past month. A 52-week high of $23.80 was reached on 09/08/23 after having rallying from a 52-week low of $11.92. Since the beginning of this year, FRSH’s stock price has risen by 31.75% or $4.67, and marked a new high 15 times. However, the stock has declined by -18.57% since its 52-week high.
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FRSH stock investors should be aware that Freshworks Inc. (FRSH) stock had its last reported insider trading activity 8 days ago on Sep 15. Mathrubootham Rathnagirish, the Chief Executive Officer of the company, disposed of 610,600 shares for $20.04 on Sep 15. It resulted in a $12,236,424 divestment by the insider. Ramamurthy Srinivasagopalan sold 50,000 shares at an average price of $20.05 on Sep 15. The insider now owns 605,394 shares following the transaction. On Sep 14, Chief Executive Officer Mathrubootham Rathnagirish sold 503,462 shares at $20.69 apiece. The transaction was valued at $10,416,629.
Valuation Metrics
The stock’s beta is 0.85. Besides these, the trailing price-to-sales (P/S) ratio of 10.73, the price-to-book (PB) ratio of 5.35, and the price-to-cash flow ratio of 244.59 may also be considered.
Financial Health
In the three months ended June 29, Freshworks Inc.’s quick ratio stood at 4.50, while its current ratio was 4.50, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 81.70% percent. In the year ended June 29, EBITDA margin amounted to -43.31%, whereas operating margins totaled -38.60%. Based on annual data, FRSH earned $402.23 million in gross profit and brought in $498.0 million in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -23.30%. Return on equity (ROE) for the past 12 months was -18.20%.
According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. FRSH’s revenue rose 16.3% to $137.69 million during the quarter, while net income inched up to $145.08 million. While analysts expected Freshworks Inc. to report $0.02 quarterly earnings, the actual figure was $0.07 per share. During the quarter, the company generated -$38.74 million in EBITDA. The liabilities of Freshworks Inc. were 342.65 million at the end of its most recent quarter ended June 29, and its total debt was $30.03 million. The value of shareholders’ equity is $293.57 million.
Technical Picture
This quick technical analysis looks at Freshworks Inc.’s (FRSH) price momentum. With a historical volatility rate of 18.75%, the RSI 9-day stood at 27.51% on 22 September.
With respect to its five-day moving average, the current Freshworks Inc. price is down by -3.15% percent or -$0.63. At present, FRSH shares trade -6.24% below its 20-day simple moving average and +45.93% percent above its 100-day simple moving average. However, the stock is currently trading approximately +9.80% above its SMA50 and +36.29% above its SMA200.
Stochastic coefficient K was 8.05% and Stochastic coefficient D was 10.15%, while ATR was 0.77. Given the Stochastic reading of 3.70% for the 14-day period, the RSI (14) reading has been calculated as 36.24%. As of today, the MACD Oscillator reading stands at -0.57, while the 14-day reading stands at -1.38.
Analyst Ratings
Canaccord Genuity upgraded its rating on Freshworks Inc. (NASDAQ: FRSH) to a Buy in a note to investors on August 02, 2023. The analysts firm previously had a Hold rating on the stock.Freshworks Inc. (FRSH) has been rated Overweight by analysts. According to 0 brokerage firms, FRSH is a sell, and 7 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Freshworks Inc. stock as buy, with 9 recommending it as overweight.
With a median target price of $25.00, the current consensus forecast for the stock is $22.00 – $28.00. Based on these forecasts, analysts predict Freshworks Inc. (FRSH) will achieve an average price target of $25.47.
