Freshworks (NASDAQ:FRSH) Downgraded to “Hold” Rating by Wall Street Zen

Freshworks (NASDAQ:FRSH) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report issued on Saturday.

Several other research analysts also recently commented on FRSH. Jefferies Financial Group downgraded Freshworks from a “buy” rating to a “hold” rating and reduced their target price for the stock from $20.00 to $8.00 in a report on Monday, February 23rd. Zacks Research cut Freshworks from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. UBS Group set a $11.00 price objective on Freshworks in a research report on Wednesday, February 11th. Robert W. Baird set a $10.00 price objective on Freshworks in a research note on Wednesday, February 11th. Finally, Oppenheimer set a $15.00 target price on Freshworks in a report on Wednesday, February 11th. Seven research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Freshworks currently has a consensus rating of “Hold” and a consensus price target of $12.92.

Freshworks Stock Up 0.1%

Shares of FRSH stock opened at $8.63 on Friday. The company has a market capitalization of $2.43 billion, a P/E ratio of 13.48 and a beta of 0.93. Freshworks has a 12-month low of $6.79 and a 12-month high of $16.48. The firm has a 50-day moving average price of $9.87 and a 200 day moving average price of $11.39.

Freshworks (NASDAQ:FRSH) last issued 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. The firm 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 4.69%. The company’s quarterly revenue was up 14.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $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 expect that Freshworks will post -0.19 earnings per share for the current year.

Insider Activity

In other news, insider Mika Yamamoto sold 32,577 shares of the company’s stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $8.45, for a total value of $275,275.65. Following the completion of the sale, the insider directly owned 1,127,723 shares of the company’s stock, valued at $9,529,259.35. This represents a 2.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 11.17% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Invesco Ltd. raised its holdings in Freshworks by 8.3% in the fourth quarter. Invesco Ltd. now owns 304,088 shares of the company’s stock worth $3,725,000 after purchasing an additional 23,211 shares during the period. Mercer Global Advisors Inc. ADV grew its holdings in shares of Freshworks by 337.6% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 45,364 shares of the company’s stock valued at $556,000 after buying an additional 34,997 shares during the period. EP Wealth Advisors LLC bought a new stake in shares of Freshworks in the 4th quarter valued at $266,000. Mackenzie Financial Corp increased its position in shares of Freshworks by 14.0% in the 4th quarter. Mackenzie Financial Corp now owns 267,277 shares of the company’s stock valued at $3,289,000 after buying an additional 32,914 shares in the last quarter. Finally, Fuller & Thaler Asset Management Inc. raised its stake in Freshworks by 11.2% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 4,748,985 shares of the company’s stock worth $58,175,000 after buying an additional 478,473 shares during the period. Institutional investors and hedge funds 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.