Stock of the Day

September 26, 2023

Freshworks (FRSH)

$14.25
+$0.56 (+4.1%)
Market Cap: $3.57B

About Freshworks

Freshworks Inc., a software development company, provides software-as-a-service products worldwide. It offers Freshworks Customer Service Suite, which provides automated, personalized self-service on various channels, including web, chat, mobile messaging, email, and social; Freshdesk, a ticketing-centric customer service solution; Freshsuccess, a customer success solution; and Freshchat that provides agents with a modern conversational experience to proactively engage customers across digital messaging channels. The company also provides Freshsales, an advanced and user-friendly sales automation solution; Freshmarketer, a marketing automation solution for businesses to redefine their marketing strategies; Freshsales Suite, which offers businesses a unified platform that facilitates cohesive engagement and detailed tracking of customers throughout their entire buying journey; Freshservice that offers virtual agents to help employees resolve issues, make requests, and answer questions without contacting the service desk; and Freshservice for Business Teams, which provides a unified employee service experience while ensuring the secure separation of departmental data. In addition, it offers Freshping to monitor website's availability and get multichannel alerts if the website goes down; Freshstatus, which allows businesses to create a custom branded website status page for internal or external viewing to communicate website uptime and availability; and Freshsurvey to measure net promoter scores and other satisfaction metrics directly within Freshworks products. The company was formerly known as Freshdesk Inc. and changed its name to Freshworks Inc. in June 2017. Freshworks Inc. was incorporated in 2010 and is headquartered in San Mateo, California.

Today's Trend

Freshworks Inc. (NASDAQ: FRSH) shares increased as investors reacted to the company’s addition to the S&P SmallCap 600, which is expected to generate buying from index-tracking funds. Freshworks will replace BioLife Solutions after BioLife’s acquisition, creating a potential “index effect” and helping explain the unusually heavy trading volume and move toward a new 52-week high.

  • Freshworks will join the S&P SmallCap 600, replacing BioLife Solutions following its acquisition. The inclusion may bring incremental demand from passive investment funds and improve the stock’s visibility. Freshworks to Join S&P SmallCap 600
  • The index announcement drove strong investor interest, with Freshworks emerging among the session’s biggest stock movers and reaching a new one-year high. The move also places the shares above their 50-day and 200-day moving averages, signaling positive momentum. Why Freshworks Stock Bumped Higher Today
  • Freshworks’ latest quarterly results exceeded analyst expectations, with adjusted EPS of $0.17 versus $0.13 expected and revenue of $237.4 million versus $233.6 million expected. Revenue grew 16% year over year, although the current rally appears primarily tied to the index inclusion rather than new earnings news.
  • Analyst sentiment remains moderately positive: the consensus rating is “Moderate Buy,” with an average price target of $14.46. However, the shares’ advance toward that target may limit near-term upside unless estimates improve.
  • Chief Accounting Officer Philippa Lawrence sold 3,492 shares for approximately $45,326 under a pre-arranged Rule 10b5-1 plan to cover tax withholding on vested equity awards. The sale reduced her holdings by only 0.91% and therefore appears to be a limited signal of insider sentiment. SEC insider transaction filing
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