Freshworks director Nelson Zachary sells $122,577 in stock

Published 03/04/2025, 23:00
Freshworks director Nelson Zachary sells $122,577 in stock

In a recent transaction, Freshworks Inc . (NASDAQ:FRSH) director Nelson Zachary sold 8,442 shares of Class A Common Stock, generating a total of $122,577. The shares were sold at a weighted average price of $14.52 per share, with individual transaction prices ranging from $14.21 to $14.70. This sale was executed under a Rule 10b5-1 trading plan, which had been adopted on February 10, 2024. The timing of the sale coincides with a challenging period for the stock, which has declined about 14% in the past week, according to InvestingPro data.

Additionally, Zachary acquired 703 shares of Class A Common Stock on April 1, 2025, as part of Freshworks’ Non-Employee Director Compensation Policy. This acquisition was made in lieu of cash compensation, with the shares being fully vested.

Further, on April 1, 2025, Zachary exercised restricted stock units, converting 9,380 shares of Class B Common Stock into Class A Common Stock. The Class B shares are convertible into Class A shares upon sale or transfer, with no expiration date on this conversion option.

These transactions reflect Zachary’s ongoing management of his equity holdings in Freshworks, a company known for its prepackaged software services. According to InvestingPro analysis, the company appears undervalued despite impressive gross profit margins of 84% and positive analyst sentiment, with 10 analysts recently revising earnings estimates upward. For detailed insights and additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Freshworks Inc has seen several analysts adjust their price targets following the company’s financial updates. Piper Sandler increased Freshworks’ price target to $24, recognizing the company’s over $400 million annual recurring revenue in its Experience segment and its solid top-line performance, which included a $5 million beat. Cantor Fitzgerald also raised its target to $22, highlighting Freshworks’ strategic moves into the mid-market and enterprise sectors, which now account for over 60% of its annual recurring revenue. Meanwhile, Oppenheimer set its target at $24, citing strong fourth-quarter results that surpassed expectations, particularly in billings and annual recurring revenue.

Scotiabank (TSX:BNS) raised its target to $19, noting Freshworks’ 17% organic billings growth and the potential for reaccelerating its Customer Experience segment in the future. Needham maintained a Buy rating with a $25 target, expressing confidence in Freshworks’ expansion into new Enterprise Service Management sectors and its stable Net Revenue Retention rate. The company’s recent partnership with Unisys (NYSE:UIS) and the development of Freshcaller were also noted as positive indicators.

Analysts such as Brent Bracelin from Piper Sandler and Brett Knoblauch from Cantor Fitzgerald remain optimistic about Freshworks’ growth prospects and strategic direction, with expectations for continued expansion and improved financial performance. Despite some concerns about the Customer Experience segment’s performance, analysts generally view Freshworks’ valuation as favorable compared to its competitors. The company’s advancements in artificial intelligence and strategic partnerships are seen as key factors in its ongoing growth trajectory.

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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