Zacks Research Upgrades Freshworks (NASDAQ:FRSH) to Strong-Buy

Freshworks (NASDAQ:FRSH) was upgraded by stock analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

A number of other research firms have also commented on FRSH. Piper Sandler decreased 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. Canaccord Genuity Group set a $14.00 price objective on Freshworks in a research report on Wednesday, February 11th. UBS Group set a $11.00 price objective on Freshworks in a research report on Wednesday, February 11th. Citigroup restated an “outperform” rating on shares of Freshworks in a research report on Wednesday, February 11th. Finally, Needham & Company LLC restated a “buy” rating and set a $15.00 price objective on shares of Freshworks in a research report on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $12.45.

Freshworks Stock Performance

Freshworks stock opened at $8.83 on Thursday. The company 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 posted its quarterly earnings data on Tuesday, May 5th. The company reported $0.11 EPS for the quarter, hitting analysts’ consensus estimates 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 quarter last year, the business posted $0.18 EPS. The company’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. Equities analysts forecast that Freshworks will post -0.09 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Mika Yamamoto sold 32,577 shares of Freshworks stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $8.45, for a total value of $275,275.65. Following the completion of the sale, the insider owned 1,127,723 shares of the company’s stock, valued at approximately $9,529,259.35. The trade was a 2.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 8.54% of the company’s stock.

Institutional Investors Weigh In On Freshworks

Institutional investors and hedge funds have recently modified their holdings of the business. IFP Advisors Inc lifted its stake in shares of 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 purchasing an additional 1,948 shares during the last quarter. Summit Securities Group LLC acquired a new stake in Freshworks in the 4th quarter worth approximately $26,000. Meeder Asset Management Inc. acquired a new stake in Freshworks in the 3rd quarter worth approximately $27,000. Rothschild Investment LLC lifted its holdings in Freshworks by 560.0% in the 3rd quarter. Rothschild Investment LLC now owns 2,277 shares of the company’s stock worth $27,000 after purchasing an additional 1,932 shares during the last quarter. Finally, SBI Securities Co. Ltd. lifted its holdings in Freshworks by 136.2% in the 3rd quarter. SBI Securities Co. Ltd. now owns 2,745 shares of the company’s stock worth $32,000 after purchasing an additional 1,583 shares during the last quarter. Institutional investors and hedge funds 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.