Wall Street Zen Downgrades Freshworks (NASDAQ:FRSH) to Hold

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

Several other research analysts have also commented on the company. Robert W. Baird set a $10.00 price objective on Freshworks in a research report on Wednesday, February 11th. Canaccord Genuity Group set a $14.00 price objective on shares of Freshworks in a research note on Wednesday, February 11th. Cantor Fitzgerald lowered their price target on shares of Freshworks from $15.00 to $12.00 and set an “overweight” rating for the company in a report on Wednesday, February 11th. Oppenheimer lowered shares of Freshworks from an “outperform” rating to a “market perform” rating in a report on Thursday, March 19th. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $15.00 target price on shares of Freshworks in a research report on Wednesday, February 11th. Six analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Freshworks presently has a consensus rating of “Hold” and a consensus target price of $12.92.

Freshworks Price Performance

NASDAQ FRSH opened at $7.87 on Friday. The business’s 50-day simple moving average is $8.73 and its 200-day simple moving average is $10.82. The firm has a market capitalization of $2.24 billion, a P/E ratio of 12.30 and a beta of 0.93. Freshworks has a 1-year low of $6.79 and a 1-year high of $16.14.

Freshworks (NASDAQ:FRSH) last posted its quarterly earnings results on Tuesday, February 10th. The company reported $0.14 EPS for the quarter, beating the consensus estimate of $0.11 by $0.03. Freshworks had a net margin of 21.90% and a return on equity of 4.69%. The firm had revenue of $222.74 million for the quarter, compared to analyst estimates of $218.76 million. During the same quarter last year, the firm 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. On average, equities research analysts expect that Freshworks will post -0.19 EPS for the current fiscal year.

Insider Buying and Selling

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

Institutional Investors Weigh In On Freshworks

Hedge funds and other institutional investors have recently modified their holdings of the stock. Balyasny Asset Management L.P. bought a new position in shares of Freshworks during the fourth quarter worth about $31,967,000. Norges Bank bought a new stake in Freshworks in the fourth quarter valued at about $31,873,000. Eminence Capital LP increased its holdings in Freshworks by 39.4% in the second 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 during the last quarter. Jupiter Asset Management Ltd. raised its stake in Freshworks by 1,528.6% during the fourth quarter. Jupiter Asset Management Ltd. now owns 1,708,811 shares of the company’s stock valued at $20,933,000 after buying an additional 1,603,887 shares in the last quarter. Finally, Qube Research & Technologies Ltd lifted its holdings in Freshworks by 132.6% during the 3rd quarter. Qube Research & Technologies Ltd now owns 2,790,166 shares of the company’s stock worth $32,840,000 after buying an additional 1,590,384 shares during the last quarter. 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.