Freshworks Sees Unusually High Options Volume (NASDAQ:FRSH)

Freshworks Inc. (NASDAQ:FRSH) was the target of some unusual options trading activity on Wednesday. Investors purchased 4,648 call options on the stock. This represents an increase of approximately 95% compared to the average volume of 2,384 call options.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on FRSH shares. UBS Group set a $11.00 price objective on shares of Freshworks in a research note on Wednesday. Wells Fargo & Company dropped their price target on Freshworks from $13.00 to $10.00 and set an “equal weight” rating for the company in a research report on Wednesday. Cantor Fitzgerald cut their price target on Freshworks from $15.00 to $12.00 and set an “overweight” rating for the company in a report on Wednesday. BTIG Research initiated coverage on Freshworks in a research note on Tuesday, December 16th. They set a “neutral” rating on the stock. Finally, Zacks Research downgraded Freshworks from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 12th. Eight research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $14.92.

Insider Transactions at Freshworks

In other Freshworks news, CAO Philippa Lawrence sold 5,846 shares of the firm’s stock in a transaction on Tuesday, December 2nd. The stock was sold at an average price of $12.06, for a total value of $70,502.76. Following the transaction, the chief accounting officer owned 392,711 shares in the company, valued at approximately $4,736,094.66. This trade represents a 1.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible 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 sale, the insider directly owned 490,350 shares of the company’s stock, valued at $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. Insiders sold a total of 22,267 shares of company stock worth $282,301 over the last ninety days. 11.17% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in FRSH. Vanguard Group Inc. increased its stake in Freshworks by 3.5% in the fourth quarter. Vanguard Group Inc. now owns 27,240,469 shares of the company’s stock valued at $333,696,000 after purchasing an additional 922,549 shares during the last quarter. Eminence Capital LP boosted its holdings in shares of Freshworks by 39.4% in the 2nd quarter. Eminence Capital LP now owns 7,334,601 shares of the company’s stock valued at $109,359,000 after buying an additional 2,074,641 shares in the last quarter. Geode Capital Management LLC grew its position in shares of Freshworks by 1.9% in the 4th quarter. Geode Capital Management LLC now owns 5,126,112 shares of the company’s stock valued at $62,805,000 after buying an additional 95,720 shares during the last quarter. Wellington Management Group LLP raised its stake in Freshworks by 9.5% during the 3rd quarter. Wellington Management Group LLP now owns 4,906,157 shares of the company’s stock worth $57,745,000 after acquiring an additional 424,866 shares in the last quarter. Finally, State Street Corp lifted its position in Freshworks by 2.1% in the second quarter. State Street Corp now owns 4,850,487 shares of the company’s stock valued at $72,321,000 after acquiring an additional 101,132 shares during the last quarter. 75.58% of the stock is owned by institutional investors and hedge funds.

Freshworks Stock Down 16.4%

Shares of FRSH stock opened at $7.30 on Thursday. Freshworks has a 52 week low of $7.00 and a 52 week high of $18.77. The stock has a market capitalization of $2.06 billion, a PE ratio of 11.41 and a beta of 0.89. The firm has a 50 day moving average of $11.57 and a two-hundred day moving average of $12.02.

Freshworks (NASDAQ:FRSH) last posted its quarterly earnings results on Tuesday, February 10th. The company reported $0.14 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.11 by $0.03. Freshworks had a return on equity of 4.77% and a net margin of 21.90%.The company had revenue of $222.74 million for the quarter, compared to analyst estimates of $218.76 million. During the same quarter last year, the company earned $0.14 EPS. 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. Analysts expect that Freshworks will post -0.19 EPS for the current fiscal year.

Freshworks News Roundup

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q4 beat on both EPS and revenue, with improving profits and cash flow; company exceeded the high end of revenue and non‑GAAP margin guidance, reported 16% revenue growth for 2025 and strong operating cash flow. Freshworks Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Management is pushing AI and EX/CX product adoption (Freddy AI, Freshservice enhancements) and set targets (aiming for $1.3B ARR by 2028), which supports longer‑term revenue expansion. Freshworks targets $1.3B ARR by 2028
• Neutral Sentiment: Revenue guidance for FY2026 ($952–$960M) came in above street revenue estimates, but management’s FY EPS guide (non‑GAAP $0.55–$0.57) is below consensus — a mixed signal that complicates near‑term earnings expectations. Freshworks forecasts annual revenue above estimates
• Neutral Sentiment: Analysts are re‑assessing Freshworks’ competitive positioning and valuation after the print — coverage pieces note the story is shifting as competitors and AI dynamics are re‑priced. How Freshworks (FRSH) Story Is Shifting
• Negative Sentiment: Several firms cut price targets shortly after the results (examples: JMP/Citizens cut a prior high target, Wells Fargo lowered its target to $10, Cantor Fitzgerald trimmed to $12), signaling reduced near‑term conviction and driving downside pressure.
• Negative Sentiment: Investors interpreted the weaker-than-expected EPS guidance and other mixed signals as disappointing, triggering large intraday volume and selling pressure; coverage headlines explicitly cite the stock “nosediving.” Why Freshworks (FRSH) stock is nosediving
• Neutral Sentiment: Unusual options activity (a spike in call buying) was observed on the print day — this can amplify intraday volatility but is ambiguous for direction. Separate short‑interest reports appear to show data inconsistencies; monitor updated filings for clarity.

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.