Freshworks (NASDAQ:FRSH) Trading Down 4.7% Following Insider Selling

Freshworks Inc. (NASDAQ:FRSH) fell 4.7% during trading on Friday after an insider sold shares in the company. The stock traded as low as $12.61 and last traded at $12.7350. Approximately 1,470,499 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 10,648,855 shares. The stock had previously closed at $13.36.

Specifically, CAO Philippa Lawrence sold 52,767 shares of the firm’s stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $13.25, for a total value of $699,162.75. Following the completion of the sale, the chief accounting officer directly owned 389,296 shares in the company, valued at $5,158,172. This trade represents a 11.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on FRSH shares. Morgan Stanley reduced their price target on Freshworks from $15.00 to $13.00 and set an “equal weight” rating on the stock in a research report on Monday, May 11th. Guggenheim initiated coverage on Freshworks in a research note on Wednesday, July 22nd. They set a “buy” rating and a $25.00 target price on the stock. Piper Sandler upped their target price on Freshworks from $10.00 to $12.00 and gave the company a “neutral” rating in a research report on Wednesday, August 5th. Cantor Fitzgerald increased their price target on Freshworks from $12.00 to $15.00 and gave the company an “overweight” rating in a research note on Wednesday, August 5th. Finally, Wall Street Zen raised Freshworks from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $14.17.

Freshworks Stock Down 4.6%

The firm has a market capitalization of $3.33 billion, a price-to-earnings ratio of 19.91, a P/E/G ratio of 10.99 and a beta of 0.89. The company’s 50 day moving average price is $11.58 and its 200 day moving average price is $9.59.

Freshworks (NASDAQ:FRSH) last issued its earnings results on Tuesday, August 4th. The company reported $0.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.13 by $0.04. Freshworks had a return on equity of 5.52% and a net margin of 20.49%.The company had revenue of $237.38 million during the quarter, compared to analyst estimates of $233.62 million. During the same quarter last year, the business posted $0.18 EPS. The firm’s quarterly revenue was up 16.0% on a year-over-year basis. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. As a group, analysts expect that Freshworks Inc. will post 0.04 earnings per share for the current year.

Institutional Trading of Freshworks

Several institutional investors and hedge funds have recently bought and sold shares of the business. IFP Advisors Inc boosted its holdings in Freshworks by 954.9% in the fourth quarter. IFP Advisors Inc now owns 2,152 shares of the company’s stock valued at $26,000 after purchasing an additional 1,948 shares during the last quarter. Summit Securities Group LLC acquired a new position in shares of Freshworks in the 4th quarter valued at about $26,000. Nykredit A S purchased a new stake in shares of Freshworks in the second quarter worth about $28,000. Cullen Frost Bankers Inc. acquired a new stake in Freshworks during the fourth quarter worth about $36,000. Finally, Allworth Financial LP raised its position in Freshworks by 479.9% during the fourth quarter. Allworth Financial LP now owns 3,201 shares of the company’s stock valued at $39,000 after acquiring an additional 2,649 shares in the last quarter. 75.58% of the stock is currently owned by institutional investors and hedge funds.

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.