Freshworks (NASDAQ:FRSH) Cut to “Hold” at Wall Street Zen

Wall Street Zen cut shares of Freshworks (NASDAQ:FRSH) from a buy rating to a hold rating in a research note released on Saturday morning.

Other equities research analysts have also recently issued research reports about the company. Zacks Research cut Freshworks from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. Needham & Company LLC reiterated a “buy” rating and set a $15.00 target price on shares of Freshworks in a research report 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 set a $15.00 price target on Freshworks in a report on Wednesday, February 11th. Finally, BTIG Research started coverage on shares of Freshworks in a research note on Tuesday, December 16th. They set a “neutral” rating for the company. Seven research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $12.92.

Freshworks Price Performance

NASDAQ:FRSH opened at $8.39 on Friday. The firm has a market cap of $2.37 billion, a PE ratio of 13.11 and a beta of 0.93. The firm has a 50 day simple moving average of $9.79 and a 200-day simple moving average of $11.33. Freshworks has a 1-year low of $6.79 and a 1-year high of $16.48.

Freshworks (NASDAQ:FRSH) last announced its earnings results on Tuesday, February 10th. The company reported $0.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.11 by $0.03. The firm had revenue of $222.74 million for the quarter, compared to analyst estimates of $218.76 million. Freshworks had a net margin of 21.90% and a return on equity of 4.69%. Freshworks’s revenue was up 14.5% compared to the same quarter last year. During the same quarter last 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. As a group, sell-side analysts expect that Freshworks will post -0.19 earnings per share for the current fiscal year.

Insider Transactions at Freshworks

In related 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 completion of the sale, the insider owned 1,127,723 shares of the company’s stock, valued at approximately $9,529,259.35. This represents a 2.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 11.17% of the company’s stock.

Institutional Investors Weigh In On Freshworks

Several institutional investors have recently bought and sold shares of FRSH. Balyasny Asset Management L.P. purchased a new position in shares of Freshworks in the 4th quarter valued at $31,967,000. Norges Bank purchased a new stake in Freshworks during the 4th quarter worth $31,873,000. Eminence Capital LP increased its holdings in Freshworks by 39.4% in the 2nd quarter. Eminence Capital LP now owns 7,334,601 shares of the company’s stock valued at $109,359,000 after purchasing an additional 2,074,641 shares in the last quarter. Jupiter Asset Management Ltd. increased its holdings in Freshworks by 1,528.6% in the 4th quarter. Jupiter Asset Management Ltd. now owns 1,708,811 shares of the company’s stock valued at $20,933,000 after purchasing an additional 1,603,887 shares in the last quarter. Finally, Qube Research & Technologies Ltd raised its position in Freshworks by 132.6% in the third quarter. Qube Research & Technologies Ltd now owns 2,790,166 shares of the company’s stock valued at $32,840,000 after purchasing an additional 1,590,384 shares during the period. 75.58% of the stock is currently owned by hedge funds and other institutional investors.

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.