Cantor Fitzgerald Has Lowered Expectations for Freshworks (NASDAQ:FRSH) Stock Price

Freshworks (NASDAQ:FRSH) had its target price cut by Cantor Fitzgerald from $15.00 to $12.00 in a research note issued to investors on Wednesday, MarketBeat reports. The brokerage currently has an “overweight” rating on the stock. Cantor Fitzgerald’s price target suggests a potential upside of 70.45% from the stock’s previous close.

FRSH has been the subject of several other research reports. Citigroup reissued an “outperform” rating on shares of Freshworks in a research note on Wednesday. Piper Sandler reduced their price target on Freshworks from $12.00 to $10.00 and set a “neutral” rating on the stock in a report on Wednesday. Wall Street Zen cut Freshworks from a “strong-buy” rating to a “buy” rating in a report on Saturday, December 20th. BTIG Research began coverage on Freshworks in a research report on Tuesday, December 16th. They issued a “neutral” rating on the stock. Finally, Zacks Research downgraded Freshworks from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 12th. Eight investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Freshworks has a consensus rating of “Hold” and a consensus target price of $14.92.

Freshworks Stock Down 3.6%

Shares of FRSH opened at $7.04 on Wednesday. The business has a fifty day moving average of $11.46 and a 200 day moving average of $11.99. The company has a market cap of $1.99 billion, a PE ratio of 11.00 and a beta of 0.89. Freshworks has a 52-week low of $6.79 and a 52-week high of $18.17.

Freshworks (NASDAQ:FRSH) last posted its quarterly earnings data on Tuesday, February 10th. The company reported $0.14 earnings per share for the quarter, beating analysts’ consensus estimates of $0.11 by $0.03. The business had revenue of $222.74 million for the quarter, compared to analysts’ expectations of $218.76 million. Freshworks had a net margin of 21.90% and a return on equity of 4.77%. The business’s revenue was up 14.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.14 earnings per share. Freshworks has set its Q1 2026 guidance at 0.100-0.120 EPS and its FY 2026 guidance at 0.550-0.570 EPS. As a group, research analysts anticipate that Freshworks will post -0.19 earnings per share for the current fiscal year.

Insider Buying and Selling at Freshworks

In related news, CAO Philippa Lawrence sold 5,846 shares of the company’s stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $12.06, for a total transaction of $70,502.76. Following the completion of the sale, the chief accounting officer directly owned 392,711 shares in the company, valued at $4,736,094.66. This represents a 1.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, insider Mika Yamamoto sold 15,012 shares of Freshworks stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $13.00, for a total value of $195,156.00. Following the completion of the transaction, the insider owned 490,350 shares in the company, valued at $6,374,550. This trade represents a 2.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 22,267 shares of company stock valued at $282,301. Corporate insiders own 11.17% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the company. Norges Bank acquired a new stake in Freshworks in the fourth quarter valued at approximately $31,873,000. Eminence Capital LP increased its position in shares of Freshworks by 39.4% during the second quarter. Eminence Capital LP now owns 7,334,601 shares of the company’s stock worth $109,359,000 after purchasing an additional 2,074,641 shares in the last quarter. Jupiter Asset Management Ltd. lifted its holdings in shares of Freshworks by 1,528.6% during the 4th quarter. Jupiter Asset Management Ltd. now owns 1,708,811 shares of the company’s stock valued at $20,933,000 after purchasing an additional 1,603,887 shares during the last quarter. Qube Research & Technologies Ltd boosted its position in shares of Freshworks by 132.6% in the 3rd quarter. Qube Research & Technologies Ltd now owns 2,790,166 shares of the company’s stock worth $32,840,000 after purchasing an additional 1,590,384 shares in the last quarter. Finally, Squarepoint Ops LLC grew its stake in Freshworks by 345.1% during the 2nd quarter. Squarepoint Ops LLC now owns 1,835,798 shares of the company’s stock worth $27,372,000 after buying an additional 1,423,391 shares during the last quarter. Institutional investors own 75.58% of the company’s stock.

Trending Headlines about Freshworks

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q4 beat and growth targets — Freshworks reported $0.14 EPS (vs. $0.11 est.) and $222.7M revenue, +14.5% YoY, and provided FY26/Q1 EPS guidance and a plan to reach $1.3B ARR by 2028 driven by EX platform and AI initiatives. Q4 2025 Earnings Call Highlights
• Positive Sentiment: Longer-term growth narrative — management reiterated ARR and AI/employee‑experience (EX) strategy that could support durable revenue expansion if execution continues. ARR target and AI strategy
• Positive Sentiment: Analyst support remains from some firms — Needham reaffirmed a buy with a $15 PT, signalling continued conviction among parts of the sell‑side despite recent cuts. Needham rating reaffirmed
• Positive Sentiment: Unusual options flow — a near‑doubling in call volume (4,648 calls) suggests traders are placing bullish/leveraged bets, which can precede volatility or a directional reversal if fundamentals hold.
• Neutral Sentiment: Short‑interest reporting anomaly — recent feeds show short interest at “0” with NaN changes, likely a data issue rather than a true indicator of short selling pressure.
• Neutral Sentiment: Elevated trading volume and volatility — intraday volume has been well above average, reflecting heavy positioning after the print and contributing to larger price moves.
• Negative Sentiment: Multiple price‑target cuts — Citigroup/JMP, Wells Fargo and Cantor lowered targets (examples: JMP $27→$16, Wells Fargo $13→$10, Cantor $15→$12), which compresses near‑term sentiment even if ratings remain mixed. Analyst price target cuts
• Negative Sentiment: Negative headlines and analyst re‑ratings — coverage describing the stock as “nosediving” and discussion of a shifting investment thesis has likely amplified selling pressure despite the quarter’s beat. Why Freshworks stock is nosediving

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.