This Freshworks Exec Just Bought $2 Million in Stock Despite Steep Share Plunge — What Should Long-Term Investors Know?

On Thursday, Tyler Sloat, the chief financial and operating officer of Freshworks (NASDAQ:FRSH), acquired 171,615 shares of the software company in an open-market purchase, increasing his direct ownership to more than 1.1 million shares.Freshworks is a technology company specializing in SaaS business applications and operating at global scale with over 4,400 employees. The company offers cloud-based software-as-a-service (SaaS) solutions, including customer support, IT service management, CRM, and marketing automation platforms. It generates revenue through subscription fees for its suite of business applications, targeting organizations seeking scalable and easy-to-implement software tools. Customers include small to mid-sized businesses and enterprises globally, with a focus on companies seeking modern, user-friendly SaaS products to enhance customer engagement and internal operations.A sizable insider buy during a period of sustained share-price weakness is the kind of signal long-term investors might want to notice, especially when paired with improving fundamentals. Freshworks’ third-quarter results showed revenue rising 15% year over year to $215.1 million and a sharp swing to a 21% non-GAAP operating margin (from 12.8% one year earlier)—evidence the company is scaling efficiently even as net dollar retention dipped slightly to 105% (from 106% sequentially). Against that backdrop, Sloat’s decision to increase his direct stake by nearly 18% stands out because it marks his first open-market purchase on record and meaningfully lifts his total ownership to 1.15 million shares.Freshworks hasn’t fully shaken off the compression that followed its post-IPO highs—shares remain more than 75% below their late-2021 peak—but the company now carries $813 million in cash and continues to generate healthy adjusted free cash flow, up to $57.2 million last quarter. That combination of balance-sheet strength and margin expansion gives long-term investors a clearer picture of why an insider might add at current valuations. Following the third-quarter earnings release earlier this month, shares have climbed about 8%. Ultimately, for investors weighing whether the reset has gone far enough, this one transaction offers a fresh datapoint worth watching.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool