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

Wall Street Zen downgraded shares of Freshworks (NASDAQ:FRSH) from a buy rating to a hold rating in a research report report published on Saturday morning.

Other equities analysts have also issued reports about the stock. Piper Sandler lowered their target price on shares of Freshworks from $12.00 to $10.00 and set a “neutral” rating for the company in a report on Wednesday, February 11th. Zacks Research cut shares of Freshworks from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. Oppenheimer cut shares of Freshworks from an “outperform” rating to a “market perform” rating in a report on Thursday, March 19th. Citigroup reiterated an “outperform” rating on shares of Freshworks in a report on Wednesday, February 11th. Finally, Cantor Fitzgerald cut their price target on shares of Freshworks from $15.00 to $12.00 and set an “overweight” rating on the stock in a report on Wednesday, February 11th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $12.45.

Freshworks Stock Performance

FRSH stock opened at $8.83 on Friday. The firm has a 50 day moving average price of $8.22 and a 200-day moving average price of $10.12. Freshworks has a 52-week low of $6.79 and a 52-week high of $16.14. The firm has a market capitalization of $2.51 billion, a price-to-earnings ratio of 14.24 and a beta of 0.83.

Freshworks (NASDAQ:FRSH) last released its earnings results on Tuesday, May 5th. The company reported $0.11 earnings per share (EPS) for the quarter, meeting the consensus estimate 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 period last year, the business earned $0.18 earnings per share. The business’s 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. As a group, sell-side analysts forecast that Freshworks will post -0.09 earnings per share for the current fiscal year.

Insider Activity at Freshworks

In other news, insider Mika Yamamoto sold 32,577 shares of the stock in a transaction that occurred 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 sale, the insider owned 1,127,723 shares in the company, valued at $9,529,259.35. This represents a 2.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 8.54% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted 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 valued at $333,696,000 after purchasing an additional 922,549 shares during the period. Wellington Management Group LLP lifted its position in Freshworks by 9.2% during the fourth 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 lifted its position in Freshworks by 1.9% during the fourth quarter. Geode Capital Management LLC now owns 5,126,112 shares of the company’s stock valued at $62,805,000 after purchasing an additional 95,720 shares during the period. State Street Corp lifted its position in Freshworks by 1.2% during the fourth quarter. State Street Corp now owns 4,904,684 shares of the company’s stock valued at $60,082,000 after purchasing an additional 56,935 shares during the period. Finally, Fuller & Thaler Asset Management Inc. lifted its position in Freshworks by 11.2% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 4,748,985 shares of the company’s stock valued at $58,175,000 after purchasing an additional 478,473 shares during the period. 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.