Freshworks (NASDAQ:FRSH) Sets New 12-Month High – Should You Buy?

Shares of Freshworks Inc. (NASDAQ:FRSH) reached a new 52-week high during mid-day trading on Wednesday. The stock traded as high as $14.99 and last traded at $14.85, with a volume of 4,967,555 shares changing hands. The stock had previously closed at $14.13.

Wall Street Analysts Forecast Growth

A number of analysts have commented on FRSH shares. UBS Group upped their price target on shares of Freshworks from $11.00 to $14.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Freshworks in a report on Tuesday, October 13th. Wall Street Zen raised Freshworks from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. Piper Sandler boosted their price objective on Freshworks from $10.00 to $12.00 and gave the company a “neutral” rating in a research note on Wednesday, August 5th. Finally, Zacks Research lowered Freshworks from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $14.46.

Freshworks Stock Up 3.4%

The firm has a market capitalization of $4.00 billion, a P/E ratio of 23.94, a price-to-earnings-growth ratio of 9.88 and a beta of 0.90. The company’s 50 day moving average is $13.14 and its 200-day moving average is $10.88.

Freshworks (NASDAQ:FRSH) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $0.17 EPS for the quarter, topping analysts’ consensus estimates of $0.13 by $0.04. Freshworks had a net margin of 20.49% and a return on equity of 5.52%. The business had revenue of $237.38 million during the quarter, compared to analysts’ expectations of $233.62 million. During the same period last year, the company posted $0.18 earnings per share. The business’s quarterly revenue was up 16.0% on a year-over-year basis. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. On average, analysts predict that Freshworks Inc. will post 0.05 EPS for the current fiscal year.

Insider Activity at Freshworks

In other news, CAO Philippa Lawrence sold 3,492 shares of the firm’s stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $12.98, for a total value of $45,326.16. Following the completion of the sale, the chief accounting officer directly owned 379,639 shares in the company, valued at $4,927,714.22. This trade represents a 0.91% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 8.54% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in FRSH. Renaissance Technologies LLC grew its stake in Freshworks by 79.1% in the first quarter. Renaissance Technologies LLC now owns 4,576,000 shares of the company’s stock valued at $36,745,000 after acquiring an additional 2,021,412 shares during the period. Wellington Management Group LLP increased its holdings in shares of Freshworks by 9.7% during the second quarter. Wellington Management Group LLP now owns 4,000,543 shares of the company’s stock valued at $40,485,000 after acquiring an additional 353,714 shares in the last quarter. Bank of America Corp DE increased its holdings in shares of Freshworks by 1.4% during the first quarter. Bank of America Corp DE now owns 2,128,268 shares of the company’s stock valued at $17,090,000 after acquiring an additional 30,395 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund increased its holdings in shares of Freshworks by 403.4% during the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,444,124 shares of the company’s stock valued at $11,596,000 after acquiring an additional 1,157,277 shares in the last quarter. Finally, Walleye Capital LLC raised its position in shares of Freshworks by 2,480.8% during the first quarter. Walleye Capital LLC now owns 1,247,655 shares of the company’s stock worth $10,019,000 after purchasing an additional 1,199,311 shares during the period. 75.58% of the stock is owned by institutional investors and hedge funds.

Freshworks Company Profile

Freshworks Inc (NASDAQ:FRSH) develops cloud-based customer and employee engagement software for businesses of various sizes. Its products are designed to help organizations manage customer support, IT service operations, sales activities, and marketing workflows through user-friendly, artificial intelligence-enabled applications.

The company’s product portfolio includes Freshdesk for customer service and support, Freshservice for IT and enterprise service management, Freshsales for customer relationship management, and Freshmarketer for marketing automation and customer engagement.