Freshworks (NASDAQ:FRSH) Shares Gap Down – Here’s What Happened

Freshworks Inc. (NASDAQ:FRSH)’s stock price gapped down before the market opened on Monday . The stock had previously closed at $7.46, but opened at $7.14. Freshworks shares last traded at $6.9420, with a volume of 746,338 shares traded.

Analysts Set New Price Targets

FRSH has been the subject of several recent analyst reports. Piper Sandler reduced their price objective on shares of Freshworks from $12.00 to $10.00 and set a “neutral” rating for the company in a research note on Wednesday, February 11th. Zacks Research cut Freshworks from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. BTIG Research started coverage on Freshworks in a report on Tuesday, December 16th. They issued a “neutral” rating for the company. Citigroup reiterated an “outperform” rating on shares of Freshworks in a report on Wednesday, February 11th. Finally, Robert W. Baird set a $10.00 price objective on Freshworks in a research note on Wednesday, February 11th. Seven investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $12.92.

Freshworks Trading Down 7.7%

The stock has a market capitalization of $1.94 billion, a P/E ratio of 10.79 and a beta of 0.89. The business has a 50-day moving average price of $10.77 and a 200 day moving average price of $11.72.

Freshworks (NASDAQ:FRSH) last announced its earnings results on Tuesday, February 10th. The company reported $0.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.03. The business had revenue of $222.74 million during the quarter, compared to analyst estimates of $218.76 million. Freshworks had a return on equity of 4.77% and a net margin of 21.90%.The company’s revenue for the quarter was up 14.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.14 earnings per share. Freshworks has set its Q1 2026 guidance at 0.100-0.120 EPS and its FY 2026 guidance at 0.550-0.570 EPS. On average, sell-side analysts predict that Freshworks Inc. will post -0.19 earnings per share for the current fiscal year.

Insider Buying and Selling at Freshworks

In other Freshworks news, CAO Philippa Lawrence sold 5,846 shares of the stock in a transaction dated Tuesday, December 2nd. The stock was sold at an average price of $12.06, for a total value of $70,502.76. Following the completion of the sale, the chief accounting officer directly owned 392,711 shares in the company, valued at approximately $4,736,094.66. This trade represents a 1.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Mika Yamamoto sold 15,012 shares of the firm’s stock in a transaction on Friday, December 5th. The stock was sold at an average price of $13.00, for a total value of $195,156.00. Following the completion of the transaction, the insider owned 490,350 shares of the company’s stock, valued at $6,374,550. This trade represents a 2.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 21,623 shares of company stock worth $274,540 over the last ninety days. Corporate insiders own 11.17% of the company’s stock.

Institutional Investors Weigh In On Freshworks

Several institutional investors and hedge funds have recently added to or reduced their stakes in FRSH. BNP PARIBAS ASSET MANAGEMENT Holding S.A. purchased a new stake in Freshworks in the second quarter valued at $25,000. Summit Securities Group LLC purchased a new position in Freshworks during the 4th quarter worth approximately $26,000. IFP Advisors Inc increased its position in Freshworks by 954.9% in the 4th quarter. IFP Advisors Inc now owns 2,152 shares of the company’s stock valued at $26,000 after acquiring an additional 1,948 shares during the period. Rothschild Investment LLC lifted its position in Freshworks by 560.0% in the third quarter. Rothschild Investment LLC now owns 2,277 shares of the company’s stock valued at $27,000 after purchasing an additional 1,932 shares during the period. Finally, Meeder Asset Management Inc. acquired a new position in shares of Freshworks during the 3rd quarter worth $27,000. Hedge funds and other institutional investors 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.