Wells Fargo has recently initiated Freshworks Inc (FRSH) stock to Equal Weight rating, as announced on October 16, 2024, according to Finviz. Earlier, on May 2, 2024, Robert W. Baird had reduced the stock from a Outperform to Neutral, setting a price target of $16 for FRSH stock. Oppenheimer also reduced Perform rating. Additionally, Wolfe Research raised Outperform rating on February 20, 2024, with a target price of $27. Jefferies analysts, in their report published on January 5, 2024, also raised Buy rating and set a price target of $20 for Freshworks Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Freshworks Inc (FRSH) Stock Trading Recap
On Tuesday, Freshworks Inc (FRSH) stock saw a decline, ending the day at $15.98 which represents a decrease of $-0.12 or -0.75% from the prior close of $16.1. The stock opened at $15.96 and touched a low of $15.79 during the day, reaching a high of $16.11. The volume of shares traded was 5.36 million exceeding the average volume of 3.83 million.
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FRSH Stock Performance and Moving Averages
In recent trading, Freshworks Inc (FRSH) stock price has shown some volatility, fluctuating -2.86% over the last five trades and 32.61% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 26.12%, and it has gained 38.35% in the previous three months. Currently, FRSH is trading at 1.30%, 21.59%, and 12.35% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, FRSH, a Technology sector stock, is trading -36.02% below its 52-week high but remains 47.83% above its 52-week low. The Average True Range (ATR) (14 days) of 0.58 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Freshworks Inc’s Profitability and Valuation Ratios
Freshworks Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of -22.58% and a profit margin of -14.80%, with a gross margin of 26.12%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Freshworks Inc’s market capitalization stands at $4.84 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 30.8. Additionally, the Price-to-Sales Ratio is 7.06, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 4.26, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 44.12% of Freshworks Inc (FRSH)’s shares, while financial institutions hold 45.19%.
Notable insider trades include NELSON ZACHARY, Director at Freshworks Inc (FRSH), who sold 8442 shares on Dec 02 ’24, at $16.14 each, totaling $0.14 million. On Nov 11 ’24, AUSTIN ROXANNE S, Director, sold 6303 shares for $16.44 each, amounting to $0.10 million. Additionally, on Nov 04 ’24, NELSON ZACHARY sold 8433 shares at $12.19 each, generating $0.10 million.
