Freshworks (NASDAQ:FRSH) Stock Price Down 5.7% – Time to Sell?

Freshworks Inc. (NASDAQ:FRSH)’s share price traded down 5.7% on Wednesday . The stock traded as low as $10.02 and last traded at $10.0820. 666,899 shares were traded during trading, a decline of 94% from the average daily volume of 11,337,360 shares. The stock had previously closed at $10.69.

Analyst Upgrades and Downgrades

FRSH has been the topic of several recent analyst reports. Citigroup reiterated a “market outperform” rating on shares of Freshworks in a research note on Tuesday, June 2nd. Weiss Ratings lowered Freshworks from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, May 7th. Guggenheim began coverage on Freshworks in a report on Wednesday. They set a “buy” rating and a $25.00 price objective on the stock. Zacks Research lowered Freshworks from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 10th. Finally, Morgan Stanley reduced their target price on Freshworks from $15.00 to $13.00 and set an “equal weight” rating for the company in a research note on Monday, May 11th. Seven 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’s stock. Based on data from MarketBeat.com, Freshworks has an average rating of “Hold” and an average price target of $13.25.

Freshworks Stock Down 2.9%

The stock has a market cap of $2.70 billion, a P/E ratio of 15.76 and a beta of 0.88. The firm’s 50 day simple moving average is $9.74 and its two-hundred day simple moving average is $9.21.

Freshworks (NASDAQ:FRSH) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $0.11 earnings per share (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 company had revenue of $228.63 million for the quarter, compared to the consensus estimate of $223.63 million. During the same period last year, the firm posted $0.18 EPS. The company’s revenue for the quarter 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, equities analysts predict that Freshworks Inc. will post -0.02 EPS for the current year.

Insiders Place Their Bets

In other Freshworks news, Director Jennifer H. Taylor sold 6,618 shares of the firm’s stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $10.44, for a total value of $69,091.92. Following the transaction, the director owned 62,673 shares of the company’s stock, valued at $654,306.12. This trade represents a 9.55% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Barry L. Padgett sold 6,618 shares of Freshworks stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $10.49, for a total value of $69,422.82. Following the completion of the transaction, the director owned 47,270 shares of the company’s stock, valued at approximately $495,862.30. The trade was a 12.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 27,236 shares of company stock valued at $270,331 over the last quarter. Insiders own 8.54% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in FRSH. Royal Bank of Canada boosted its holdings in shares of Freshworks by 120.8% during the first quarter. Royal Bank of Canada now owns 21,388 shares of the company’s stock valued at $302,000 after acquiring an additional 11,703 shares during the period. Amundi grew its position in shares of Freshworks by 1.3% during the first quarter. Amundi now owns 80,074 shares of the company’s stock worth $1,049,000 after acquiring an additional 1,040 shares during the last quarter. Goldman Sachs Group Inc. increased its holdings in shares of Freshworks by 35.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,225,056 shares of the company’s stock worth $31,396,000 after acquiring an additional 578,628 shares during the period. Woodline Partners LP increased its holdings in shares of Freshworks by 13.5% in the 1st quarter. Woodline Partners LP now owns 21,569 shares of the company’s stock worth $304,000 after acquiring an additional 2,571 shares during the period. Finally, Focus Partners Wealth increased its holdings in shares of Freshworks by 20.2% in the 1st quarter. Focus Partners Wealth now owns 12,399 shares of the company’s stock worth $175,000 after acquiring an additional 2,086 shares during the period. 75.58% of the stock is currently 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.