Wells Fargo & Company Issues Pessimistic Forecast for Freshworks (NASDAQ:FRSH) Stock Price

Freshworks (NASDAQ:FRSH) had its price target reduced by analysts at Wells Fargo & Company from $13.00 to $10.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has an “equal weight” rating on the stock. Wells Fargo & Company‘s price objective suggests a potential upside of 42.05% from the company’s previous close.

Other analysts also recently issued reports about the company. Wall Street Zen lowered Freshworks from a “strong-buy” rating to a “buy” rating in a research report on Saturday, December 20th. Needham & Company LLC reaffirmed a “buy” rating and set a $15.00 target price on shares of Freshworks in a research note on Wednesday. Zacks Research lowered Freshworks from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 12th. Oppenheimer set a $15.00 price objective on shares of Freshworks in a research report on Wednesday. Finally, Piper Sandler lowered their price objective on shares of Freshworks from $12.00 to $10.00 and set a “neutral” rating for the company in a research note on Wednesday. Eight equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $14.92.

Freshworks Stock Performance

Freshworks stock opened at $7.04 on Wednesday. The firm has a market cap of $1.99 billion, a price-to-earnings 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. The firm has a 50 day moving average price of $11.46 and a two-hundred day moving average price of $11.99.

Freshworks (NASDAQ:FRSH) last posted its quarterly earnings data on Tuesday, February 10th. The company reported $0.14 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.03. Freshworks had a net margin of 21.90% and a return on equity of 4.77%. The company had revenue of $222.74 million during the quarter, compared to analysts’ expectations of $218.76 million. During the same period in the prior year, the company posted $0.14 earnings per share. Freshworks’s revenue for the quarter was up 14.5% compared to the same quarter last year. 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, equities research analysts predict that Freshworks will post -0.19 EPS for the current fiscal year.

Insider Activity at Freshworks

In other Freshworks news, CAO Philippa Lawrence sold 5,846 shares of the business’s stock in a transaction on Tuesday, December 2nd. The shares were 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 owned 392,711 shares in the company, valued at approximately $4,736,094.66. The trade was a 1.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Mika Yamamoto sold 15,012 shares of the company’s stock in a transaction on Friday, December 5th. The stock was sold at an average price of $13.00, for a total transaction of $195,156.00. Following the transaction, the insider owned 490,350 shares in the company, valued at approximately $6,374,550. The trade was a 2.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 22,267 shares of company stock valued at $282,301. Corporate insiders own 11.17% of the company’s stock.

Institutional Investors Weigh In On Freshworks

Hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. lifted its position in Freshworks by 3.5% in the 4th quarter. Vanguard Group Inc. now owns 27,240,469 shares of the company’s stock valued at $333,696,000 after acquiring an additional 922,549 shares in the last quarter. Eminence Capital LP raised its stake in shares of Freshworks by 39.4% in 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 during the last quarter. Geode Capital Management LLC raised its stake in shares of Freshworks by 1.9% in the fourth quarter. Geode Capital Management LLC now owns 5,126,112 shares of the company’s stock worth $62,805,000 after purchasing an additional 95,720 shares during the last quarter. Wellington Management Group LLP lifted its holdings in shares of Freshworks by 9.5% in the third quarter. Wellington Management Group LLP now owns 4,906,157 shares of the company’s stock valued at $57,745,000 after purchasing an additional 424,866 shares in the last quarter. Finally, State Street Corp boosted its position in shares of Freshworks by 2.1% during the second quarter. State Street Corp now owns 4,850,487 shares of the company’s stock valued at $72,321,000 after buying an additional 101,132 shares during the last quarter. 75.58% of the stock is owned by institutional investors.

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.