Freshworks Target of Unusually Large Options Trading (NASDAQ:FRSH)

Freshworks Inc. (NASDAQ:FRSH) was the recipient of some unusual options trading activity on Wednesday. Stock traders purchased 4,648 call options on the company. This represents an increase of approximately 95% compared to the typical daily volume of 2,384 call options.

Key Headlines Impacting Freshworks

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q4 results topped estimates — Freshworks reported $0.14 EPS (vs. $0.11 consensus) and $222.7M revenue (vs. ~$218.8M est.), with 14% YoY revenue growth and improved cash flow and margins, which supports the company’s operational momentum. Freshworks Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Revenue outlook and AI tailwinds — management gave FY2026 revenue guidance ($952M–$960M) above estimates and highlighted AI-driven product adoption and an ambition to reach $1.3B ARR by 2028, a growth narrative investors may reward if execution continues. Freshworks forecasts annual revenue above estimates
• Positive Sentiment: Unusual options activity — a spike in call buying (4,648 calls, ~95% above average) signals short-term bullish/speculative interest from traders that could support near-term upside if momentum resumes.
• Neutral Sentiment: Mixed guidance — Q1 EPS guidance ($0.10–$0.12) was above consensus, but FY EPS guidance ($0.55–$0.57) trails the consensus (~$0.69). Revenue guidance is constructive while EPS puts near-term margin expectations in question; this mixed set of signals is why the market reaction is split.
• Negative Sentiment: Analyst price-target cuts and downgrades — multiple firms trimmed targets (e.g., JMP/Citizens from $27?$16, Wells Fargo from $13?$10, Cantor Fitzgerald from $15?$12) which increases selling pressure and reduces near-term analyst-driven demand. Wells Fargo target cut Cantor Fitzgerald target cut
• Negative Sentiment: FY EPS below Street expectations — investors appear focused on the lower FY EPS guidance (and the gap vs. consensus), which likely explains the immediate share weakness despite the top-line beat; near-term multiple compression is possible until guidance proves conservative.

Insider Activity

In other Freshworks news, insider Mika Yamamoto sold 15,012 shares of the stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $13.00, for a total value of $195,156.00. Following the completion of the sale, the insider owned 490,350 shares in the company, valued at approximately $6,374,550. This trade represents a 2.97% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO Philippa Lawrence sold 5,846 shares of Freshworks stock in a transaction that occurred on Tuesday, December 2nd. The stock was sold at an average price of $12.06, for a total value of $70,502.76. Following the completion of the sale, the chief accounting officer owned 392,711 shares in the company, valued at approximately $4,736,094.66. This represents a 1.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 22,267 shares of company stock valued at $282,301. Insiders own 11.17% of the company’s stock.

Institutional Trading of Freshworks

Several large investors have recently bought and sold shares of FRSH. BNP PARIBAS ASSET MANAGEMENT Holding S.A. purchased a new position in shares of Freshworks in the second quarter worth $25,000. IFP Advisors Inc grew its stake in Freshworks by 954.9% during 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. Meeder Asset Management Inc. purchased a new position in shares of Freshworks in the third quarter worth about $27,000. Rothschild Investment LLC raised its stake in shares of Freshworks by 560.0% in the third 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 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 purchasing an additional 1,583 shares during the period. Hedge funds and other institutional investors own 75.58% of the company’s stock.

Analyst Ratings Changes

Several research firms recently weighed in on FRSH. Piper Sandler cut their price target on shares of Freshworks from $12.00 to $10.00 and set a “neutral” rating on the stock in a report on Wednesday. Citigroup reaffirmed an “outperform” rating on shares of Freshworks in a research note on Wednesday. Oppenheimer set a $15.00 price target on shares of Freshworks in a research note on Wednesday. Robert W. Baird set a $10.00 price objective on Freshworks in a research report on Wednesday. Finally, Canaccord Genuity Group set a $14.00 target price on Freshworks in a report on Wednesday. Eight investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $15.29.

Freshworks Trading Down 15.0%

NASDAQ:FRSH traded down $1.31 on Wednesday, reaching $7.42. 15,096,166 shares of the stock traded hands, compared to its average volume of 5,559,985. The company has a market capitalization of $2.09 billion, a price-to-earnings ratio of -73.84 and a beta of 0.89. The company’s fifty day simple moving average is $11.67 and its 200 day simple moving average is $12.06. Freshworks has a 12 month low of $7.00 and a 12 month high of $18.77.

Freshworks (NASDAQ:FRSH) last posted its earnings results on Tuesday, February 10th. The company reported $0.14 earnings per share 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 the consensus estimate of $218.76 million. Freshworks had a negative net margin of 3.65% and a negative return on equity of 0.37%. The business’s quarterly revenue was up 14.5% on a year-over-year basis. During the same period in the previous year, the firm posted $0.14 EPS. Freshworks has set its Q1 2026 guidance at 0.100-0.120 EPS and its FY 2026 guidance at 0.550-0.570 EPS. Equities analysts anticipate that Freshworks will post -0.19 EPS for the current fiscal year.

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.