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

Wall Street Zen cut shares of Freshworks (NASDAQ:FRSH) from a buy rating to a hold rating in a research report sent to investors on Sunday morning.

Other analysts have also recently issued reports about the stock. Canaccord Genuity Group set a $14.00 target price on shares of Freshworks in a research note on Wednesday, February 11th. Citigroup reaffirmed an “outperform” rating on shares of Freshworks in a research note on Wednesday, February 11th. Cantor Fitzgerald decreased their price objective 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. Needham & Company LLC reissued a “buy” rating and set a $15.00 target price on shares of Freshworks in a research report on Wednesday, February 11th. Finally, UBS Group set a $11.00 price target on Freshworks in a research report on Wednesday, February 11th. Six equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $12.92.

Freshworks Price Performance

NASDAQ:FRSH opened at $7.87 on Friday. Freshworks has a 1-year low of $6.79 and a 1-year high of $16.14. The firm has a market capitalization of $2.24 billion, a price-to-earnings ratio of 12.30 and a beta of 0.93. The stock has a fifty day simple moving average of $8.73 and a 200 day simple moving average of $10.81.

Freshworks (NASDAQ:FRSH) last issued its earnings results on Tuesday, February 10th. The company reported $0.14 EPS for the quarter, topping the consensus estimate of $0.11 by $0.03. Freshworks had a return on equity of 4.69% and a net margin of 21.90%.The business had revenue of $222.74 million during the quarter, compared to analysts’ expectations of $218.76 million. During the same quarter last year, the firm posted $0.14 earnings per share. Freshworks’s revenue 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. Equities analysts predict that Freshworks will post -0.19 earnings per share for the current year.

Insider Activity at Freshworks

In other news, insider Mika Yamamoto sold 32,577 shares of Freshworks 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 transaction, the insider directly owned 1,127,723 shares in the company, valued at approximately $9,529,259.35. The trade was a 2.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 11.17% of the company’s stock.

Institutional Trading of Freshworks

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its position in Freshworks by 3.5% during the fourth quarter. Vanguard Group Inc. now owns 27,240,469 shares of the company’s stock worth $333,696,000 after acquiring an additional 922,549 shares during the period. Eminence Capital LP boosted its holdings in 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 purchasing an additional 2,074,641 shares during the period. Wellington Management Group LLP boosted its holdings in Freshworks by 9.2% in the 4th quarter. Wellington Management Group LLP now owns 5,359,784 shares of the company’s stock valued at $65,657,000 after purchasing an additional 453,627 shares during the period. Geode Capital Management LLC grew its position in Freshworks by 1.9% in the 4th 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. Finally, State Street Corp increased its holdings in shares of Freshworks by 1.2% during the 4th quarter. State Street Corp now owns 4,904,684 shares of the company’s stock worth $60,082,000 after purchasing an additional 56,935 shares during the period. Institutional investors and hedge funds own 75.58% of the company’s stock.

Freshworks Company Profile

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.