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Freshworks director Roxanne Austin sells $320k in stock

Published 06/11/2024, 06:30 PM

SAN MATEO, CA – Freshworks Inc. (NASDAQ:FRSH) director Roxanne Austin sold a total of 25,207 shares of the company's Class A common stock on June 10, according to a recent SEC filing. The transaction, which was executed under a pre-arranged trading plan, amounted to roughly $320,128.

The sales were carried out at weighted average prices ranging from $12.58 to $12.81 per share. After the transaction, Austin still owns 225,554 shares of Freshworks Inc. The company, which specializes in prepackaged software services, has seen its stock being actively traded by insiders under pre-planned arrangements, which provide a systematic method of stock selling.

The sale was conducted pursuant to a Rule 10b5-1 trading plan, which Austin adopted on March 11, 2024. Such plans allow company insiders to sell shares over a predetermined period of time, to avoid concerns about transactions based on access to non-public information.

Freshworks, formerly known as FreshDesk Inc., has its headquarters in San Mateo, California, and is incorporated in Delaware. The company has not yet commented on the recent insider transaction.

In other recent news, Freshworks Inc. has made significant strides in enhancing its IT Asset Management (ITAM) capabilities with the acquisition of Device42. This strategic move is aimed at providing customers with a unified platform that offers advanced IT Service Management (ITSM) and ITAM solutions. The integration aims to facilitate the prediction of issues, automation of remediation for critical IT services, and optimization of delivery costs while mitigating risks.

In terms of analyst adjustments, Needham maintained a Buy rating for Freshworks but lowered its price target from $30 to $20. Canaccord Genuity also held a Buy rating on Freshworks, albeit with a reduced price target of $20 from $27. However, there was a downgrade from Outperform to Perform by a leading firm due to concerns over small and medium-sized business headwinds and a recent leadership change. JPMorgan also adjusted its outlook on Freshworks, reducing the stock price target to $19 from $24 while maintaining an Overweight rating. Lastly, Baird downgraded Freshworks stock from Outperform to Neutral and significantly reduced the price target to $16 from the previous $28.

These recent developments reflect the dynamic nature of the business environment and the ongoing efforts by Freshworks to adapt and innovate.

InvestingPro Insights

Amidst the latest insider trading activity at Freshworks Inc. (NASDAQ:FRSH), investors are closely monitoring the company's financial health and market performance. Freshworks, with a market capitalization of $3.82 billion, appears to be navigating through a challenging period. The company's stock is trading near its 52-week low, which might be a reflection of investor sentiment towards its recent performance and future outlook.

An important metric that stands out is the company's gross profit margin, which, as of the last twelve months up to Q1 2024, is at an impressive 83.33%. This suggests that Freshworks has been effective in managing its cost of goods sold and indicates a strong potential for profitability. Additionally, the company has been experiencing a solid revenue growth of 19.73% during the same period, a sign that its business model is generating increased sales.

However, it's not all positive, as the company's operating income margin is currently at -24.72%, indicating that expenses are outpacing revenues, leading to operating losses. This is further supported by an unflattering P/E ratio of -36.65, and an adjusted P/E ratio for Q1 2024 at -29.76, reflecting investor concerns about the company's current profitability.

InvestingPro Tips highlight several key points for potential investors. Freshworks holds more cash than debt on its balance sheet, which can be a sign of financial stability. Furthermore, analysts have revised their earnings upwards for the upcoming period, and there is an expectation that the net income will grow this year. For investors looking for more in-depth analysis, there are additional tips available on InvestingPro, which can be found at https://www.investing.com/pro/FRSH. These tips may provide further insight into whether Freshworks' current stock price presents a buying opportunity or if caution should be exercised.

For those considering an investment in Freshworks, or for current shareholders looking to deepen their understanding of the company's prospects, InvestingPro offers a comprehensive view with more tips to consider. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and unlock the full suite of analysis and insights available on InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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