Freshworks (NASDAQ:FRSH) Shares Gap Up – Should You Buy?

Freshworks Inc. (NASDAQ:FRSH) shares gapped up prior to trading on Monday . The stock had previously closed at $11.89, but opened at $12.49. Freshworks shares last traded at $12.2650, with a volume of 451,317 shares changing hands.

Wall Street Analyst Weigh In

FRSH has been the subject of a number of research analyst reports. KeyCorp began coverage on shares of Freshworks in a research report on Monday. They set an “overweight” rating and a $18.00 price objective for the company. Piper Sandler raised their target price on shares of Freshworks from $10.00 to $12.00 and gave the company a “neutral” rating in a research report on Wednesday, August 5th. UBS Group boosted their target price on shares of Freshworks from $11.00 to $14.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Guggenheim initiated coverage on shares of Freshworks in a report on Wednesday, July 22nd. They set a “buy” rating and a $25.00 price target for the company. Finally, Zacks Research cut Freshworks from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and eight have given a Hold rating to the company. According to data from MarketBeat, Freshworks currently has an average rating of “Moderate Buy” and an average target price of $14.46.

Freshworks Stock Up 0.2%

The company has a 50 day moving average price of $11.91 and a 200-day moving average price of $9.88. The company has a market cap of $3.30 billion, a price-to-earnings ratio of 19.78, a P/E/G ratio of 10.53 and a beta of 0.89.

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

Insider Transactions at Freshworks

In other news, Director Barry Padgett sold 6,618 shares of Freshworks stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $10.49, for a total transaction of $69,422.82. Following the transaction, the director owned 47,270 shares in the company, valued at approximately $495,862.30. The trade was a 12.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jennifer Taylor sold 6,618 shares of the stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $10.44, for a total value of $69,091.92. Following the completion of the sale, the director owned 62,673 shares of the company’s stock, valued at $654,306.12. The trade was a 9.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 69,473 shares of company stock worth $872,829. Company insiders own 8.54% of the company’s stock.

Hedge Funds Weigh In On Freshworks

A number of hedge funds have recently made changes to their positions in FRSH. Tidal Investments LLC acquired a new position in shares of Freshworks in the second quarter worth approximately $374,000. Integrated Wealth Concepts LLC increased its position in Freshworks by 116.0% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 44,010 shares of the company’s stock valued at $445,000 after purchasing an additional 23,632 shares during the period. NewEdge Advisors LLC acquired a new stake in Freshworks during the 2nd quarter valued at approximately $110,000. IFP Advisors Inc raised its holdings in Freshworks by 51.6% during the 2nd quarter. IFP Advisors Inc now owns 8,120 shares of the company’s stock worth $82,000 after purchasing an additional 2,765 shares during the last quarter. Finally, Allworth Financial LP raised its holdings in Freshworks by 149.9% during the 2nd quarter. Allworth Financial LP now owns 20,936 shares of the company’s stock worth $212,000 after purchasing an additional 12,559 shares during the last quarter. 75.58% of the stock is currently owned by institutional investors.

Freshworks Company Profile

Freshworks Inc (NASDAQ: FRSH) develops cloud-based software designed to help businesses manage customer and employee experiences. Its platform is intended for organizations of various sizes and combines tools for customer support, IT service management, sales, marketing and other business functions.

The company’s product portfolio includes Freshdesk for customer service and support, Freshservice for IT and employee service management, Freshsales for customer relationship management, and Freshmarketer for marketing automation and optimization.