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

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

Other analysts have also issued research reports about the stock. Oppenheimer lowered shares of Freshworks from an “outperform” rating to a “market perform” rating in a research report on Thursday, March 19th. UBS Group set a $11.00 target price on Freshworks in a research note on Wednesday, February 11th. Piper Sandler reduced their target price on Freshworks from $12.00 to $10.00 and set a “neutral” rating on the stock in a research report on Wednesday, February 11th. Needham & Company LLC reaffirmed a “buy” rating and issued a $15.00 price target on shares of Freshworks in a research note on Wednesday, February 11th. Finally, Wells Fargo & Company lowered their price target on Freshworks from $13.00 to $10.00 and set an “equal weight” rating for the company in a report on Wednesday, February 11th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $12.45.

Freshworks Price Performance

NASDAQ FRSH opened at $8.83 on Friday. The business’s fifty day simple moving average is $8.22 and its 200-day simple moving average is $10.12. The firm has a market cap of $2.51 billion, a PE ratio of 14.24 and a beta of 0.83. Freshworks has a 52 week low of $6.79 and a 52 week high of $16.14.

Freshworks (NASDAQ:FRSH) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $0.11 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.11. Freshworks had a net margin of 20.69% and a return on equity of 4.27%. The firm had revenue of $228.63 million during the quarter, compared to analyst estimates of $223.64 million. During the same quarter in the prior year, the firm posted $0.18 earnings per share. Freshworks’s quarterly revenue was up 16.5% on a year-over-year basis. Freshworks has set its FY 2026 guidance at 0.610-0.630 EPS and its Q2 2026 guidance at 0.130-0.130 EPS. Research analysts expect that Freshworks will post -0.09 EPS for the current year.

Insiders Place Their Bets

In other Freshworks news, insider Mika Yamamoto sold 32,577 shares of the business’s stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $8.45, for a total value of $275,275.65. Following the sale, the insider owned 1,127,723 shares of the company’s stock, valued at $9,529,259.35. The trade was a 2.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 8.54% of the company’s stock.

Institutional Investors Weigh In On Freshworks

A number of institutional investors have recently modified their holdings of the company. Meeder Asset Management Inc. raised its holdings in shares of Freshworks by 164.0% in the 1st quarter. Meeder Asset Management Inc. now owns 6,156 shares of the company’s stock valued at $49,000 after buying an additional 3,824 shares during the period. Swiss National Bank boosted its holdings in Freshworks by 4.4% during the 1st quarter. Swiss National Bank now owns 391,000 shares of the company’s stock valued at $3,140,000 after acquiring an additional 16,300 shares during the period. Allspring Global Investments Holdings LLC grew its position in Freshworks by 12.4% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 46,236 shares of the company’s stock valued at $373,000 after acquiring an additional 5,112 shares in the last quarter. Bank of New York Mellon Corp increased its stake in Freshworks by 12.8% during the first quarter. Bank of New York Mellon Corp now owns 1,168,094 shares of the company’s stock worth $9,380,000 after purchasing an additional 132,443 shares during the period. Finally, Principal Financial Group Inc. increased its stake in Freshworks by 80.7% during the first quarter. Principal Financial Group Inc. now owns 765,475 shares of the company’s stock worth $6,147,000 after purchasing an additional 341,947 shares during the period. 75.58% of the stock is owned by institutional investors and hedge funds.

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.