Freshworks (NASDAQ:FRSH) Shares Gap Down – Here’s What Happened

Freshworks Inc. (NASDAQ:FRSH)’s stock price gapped down before the market opened on Monday . The stock had previously closed at $7.46, but opened at $7.14. Freshworks shares last traded at $6.9420, with a volume of 746,338 shares changing hands.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on FRSH shares. Canaccord Genuity Group set a $14.00 price target on Freshworks in a research report on Wednesday, February 11th. Zacks Research lowered shares of Freshworks from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 12th. Piper Sandler lowered their price objective on Freshworks from $12.00 to $10.00 and set a “neutral” rating on the stock in a research report on Wednesday, February 11th. BTIG Research started coverage on shares of Freshworks in a research note on Tuesday, December 16th. They issued a “neutral” rating on the stock. Finally, Cantor Fitzgerald lowered their price target on shares of Freshworks from $15.00 to $12.00 and set an “overweight” rating for the company in a report on Wednesday, February 11th. Seven analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $12.92.

Freshworks Price Performance

The firm has a 50-day moving average price of $10.77 and a two-hundred day moving average price of $11.72. The company has a market capitalization of $1.94 billion, a price-to-earnings ratio of 10.79 and a beta of 0.89.

Freshworks (NASDAQ:FRSH) last posted its quarterly earnings data on Tuesday, February 10th. The company reported $0.14 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.03. Freshworks had a net margin of 21.90% and a return on equity of 4.77%. The company had revenue of $222.74 million during the quarter, compared to the consensus estimate of $218.76 million. During the same period in the prior year, the business posted $0.14 EPS. The company’s quarterly revenue was up 14.5% on a year-over-year basis. Freshworks has set its Q1 2026 guidance at 0.100-0.120 EPS and its FY 2026 guidance at 0.550-0.570 EPS. On average, equities analysts predict that Freshworks Inc. will post -0.19 EPS for the current year.

Insiders Place Their Bets

In other Freshworks news, insider Mika Yamamoto sold 15,012 shares of the company’s stock in a transaction on Friday, December 5th. The shares were sold at an average price of $13.00, for a total value of $195,156.00. Following the transaction, the insider directly owned 490,350 shares in the company, valued at $6,374,550. The trade was a 2.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Philippa Lawrence sold 5,846 shares of the business’s 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 sale, the chief accounting officer owned 392,711 shares of the company’s stock, valued at approximately $4,736,094.66. This represents a 1.47% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 21,623 shares of company stock worth $274,540. 11.17% of the stock is owned by company insiders.

Hedge Funds Weigh In On Freshworks

Hedge funds and other institutional investors have recently modified their holdings of the business. Amundi boosted its position in Freshworks by 1.3% during the first quarter. Amundi now owns 80,074 shares of the company’s stock valued at $1,049,000 after acquiring an additional 1,040 shares during the last quarter. Vanguard Personalized Indexing Management LLC raised its stake in shares of Freshworks by 11.0% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 11,694 shares of the company’s stock worth $174,000 after purchasing an additional 1,160 shares during the last quarter. Inceptionr LLC boosted its holdings in Freshworks by 3.6% during the 3rd quarter. Inceptionr LLC now owns 33,583 shares of the company’s stock worth $395,000 after acquiring an additional 1,174 shares during the last quarter. Covestor Ltd increased its stake in Freshworks by 25.0% in the 3rd quarter. Covestor Ltd now owns 7,393 shares of the company’s stock valued at $87,000 after buying an additional 1,479 shares during the last quarter. Finally, Teacher Retirement System of Texas boosted its position in Freshworks by 1.6% in the third quarter. Teacher Retirement System of Texas now owns 97,787 shares of the company’s stock worth $1,151,000 after purchasing an additional 1,578 shares during the last quarter. Institutional investors own 75.58% of the company’s stock.

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.