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

Freshworks Inc. (NASDAQ:FRSH)’s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $9.19, but opened at $7.61. Freshworks shares last traded at $8.8520, with a volume of 2,970,639 shares traded.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on FRSH. Zacks Research lowered Freshworks from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. Cantor Fitzgerald decreased their price target on Freshworks from $15.00 to $12.00 and set an “overweight” rating on the stock in a research note on Wednesday, February 11th. Citizens Jmp decreased their price target on Freshworks from $27.00 to $16.00 and set a “market outperform” rating on the stock in a research note on Wednesday, February 11th. Oppenheimer lowered Freshworks from an “outperform” rating to a “market perform” rating in a research note on Thursday, March 19th. Finally, Weiss Ratings lowered Freshworks from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday. Six research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $12.45.

Freshworks Trading Down 2.2%

The company has a 50 day moving average of $8.22 and a 200 day moving average of $10.12. The firm has a market cap of $2.51 billion, a price-to-earnings ratio of 14.24 and a beta of 0.83.

Freshworks (NASDAQ:FRSH) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.11 EPS for the quarter, meeting the consensus estimate of $0.11. The business had revenue of $228.63 million for the quarter, compared to analyst estimates of $223.64 million. Freshworks had a return on equity of 4.27% and a net margin of 20.69%.Freshworks’s quarterly revenue was up 16.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.18 EPS. 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 anticipate that Freshworks Inc. will post -0.1 EPS for the current fiscal year.

Insider Transactions at Freshworks

In other Freshworks news, insider Mika Yamamoto sold 32,577 shares of Freshworks stock in a transaction 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 completion of the transaction, the insider owned 1,127,723 shares in the company, valued at approximately $9,529,259.35. The trade was a 2.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 8.54% of the company’s stock.

Institutional Trading of Freshworks

Several hedge funds have recently modified their holdings of FRSH. IFP Advisors Inc raised its position in shares of Freshworks by 954.9% during the fourth quarter. IFP Advisors Inc now owns 2,152 shares of the company’s stock worth $26,000 after acquiring an additional 1,948 shares during the last quarter. Summit Securities Group LLC bought a new stake in shares of Freshworks during the fourth quarter worth $26,000. Meeder Asset Management Inc. bought a new stake in shares of Freshworks during the third quarter worth $27,000. Rothschild Investment LLC raised its position in shares of Freshworks by 560.0% during the third quarter. Rothschild Investment LLC now owns 2,277 shares of the company’s stock worth $27,000 after acquiring an additional 1,932 shares during the last quarter. Finally, SBI Securities Co. Ltd. raised its position in shares of Freshworks by 136.2% during the third quarter. SBI Securities Co. Ltd. now owns 2,745 shares of the company’s stock worth $32,000 after acquiring an additional 1,583 shares during the last quarter. 75.58% of the stock is owned by institutional investors.

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.