Freshworks (NASDAQ:FRSH) Cut to Hold at Zacks Research

Zacks Research downgraded shares of Freshworks (NASDAQ:FRSH) from a strong-buy rating to a hold rating in a report published on Monday,Zacks.com reports.

Other equities analysts have also recently issued research reports about the company. BTIG Research assumed coverage on Freshworks in a report on Tuesday, December 16th. They issued a “neutral” rating for the company. UBS Group restated a “buy” rating and issued a $17.00 price target on shares of Freshworks in a research report on Friday, November 14th. Piper Sandler cut their price objective on shares of Freshworks from $25.00 to $20.00 and set an “overweight” rating on the stock in a research report on Friday, November 7th. Needham & Company LLC reissued a “buy” rating on shares of Freshworks in a research note on Monday, December 15th. Finally, Robert W. Baird lowered their target price on shares of Freshworks from $18.00 to $16.00 and set a “neutral” rating for the company in a report on Monday, September 15th. Seven investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $19.23.

Freshworks Stock Down 2.1%

Shares of NASDAQ:FRSH opened at $11.45 on Monday. Freshworks has a 52 week low of $10.51 and a 52 week high of $19.77. The stock has a market capitalization of $3.23 billion, a P/E ratio of -114.49 and a beta of 0.89. The firm has a fifty day simple moving average of $12.15 and a two-hundred day simple moving average of $12.62.

Freshworks (NASDAQ:FRSH) last announced its earnings results on Wednesday, November 5th. The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.13 by $0.03. The firm had revenue of $215.12 million for the quarter, compared to analysts’ expectations of $208.80 million. Freshworks had a negative net margin of 3.65% and a negative return on equity of 0.37%. The business’s revenue was up 15.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.11 EPS. Freshworks has set its Q4 2025 guidance at 0.100-0.120 EPS. On average, analysts expect that Freshworks will post -0.19 earnings per share for the current year.

Insider Activity at Freshworks

In related news, CEO Dennis Woodside purchased 176,100 shares of the business’s stock in a transaction dated Monday, November 10th. The shares were purchased at an average cost of $11.31 per share, for a total transaction of $1,991,691.00. Following the completion of the acquisition, the chief executive officer owned 2,111,517 shares in the company, valued at approximately $23,881,257.27. This trade represents a 9.10% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Mika Yamamoto sold 15,012 shares of the firm’s stock in a transaction dated Friday, December 5th. The stock was sold at an average price of $13.00, for a total transaction of $195,156.00. Following the completion of the transaction, the insider directly owned 490,350 shares in the company, valued at $6,374,550. This represents a 2.97% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 22,267 shares of company stock valued at $282,301 over the last ninety days. Company insiders own 11.17% of the company’s stock.

Institutional Trading of Freshworks

Institutional investors and hedge funds have recently modified their holdings of the stock. Eminence Capital LP raised its position in Freshworks by 39.4% during the 2nd quarter. Eminence Capital LP now owns 7,334,601 shares of the company’s stock valued at $109,359,000 after purchasing an additional 2,074,641 shares in the last quarter. Norges Bank bought a new position in shares of Freshworks during the 2nd quarter worth $25,113,000. Qube Research & Technologies Ltd increased its stake in shares of Freshworks by 132.6% during the third quarter. Qube Research & Technologies Ltd now owns 2,790,166 shares of the company’s stock valued at $32,840,000 after buying an additional 1,590,384 shares during the period. Squarepoint Ops LLC raised its holdings in shares of Freshworks by 345.1% in the second quarter. Squarepoint Ops LLC now owns 1,835,798 shares of the company’s stock valued at $27,372,000 after acquiring an additional 1,423,391 shares in the last quarter. Finally, Voloridge Investment Management LLC purchased a new stake in Freshworks in the third quarter worth about $15,656,000. Institutional investors own 75.58% of the company’s stock.

About Freshworks

Freshworks, Inc is a global provider of cloud-based customer engagement software designed to help businesses streamline customer support, sales, marketing, and IT service operations. The company’s integrated suite of solutions enables organizations of all sizes to deliver seamless experiences across multiple channels, including email, chat, phone, and social media. Freshworks’ platform is built on modern, user-friendly interfaces and offers native automation, AI-powered insights, and analytics to improve efficiency and customer satisfaction.

The company’s flagship product, Freshdesk, serves as a helpdesk solution for customer support teams, while Freshservice addresses IT service management needs.