Freshworks (NASDAQ:FRSH) Reaches New 1-Year High – Here’s What Happened

Freshworks Inc. (NASDAQ:FRSH) hit a new 52-week high during trading on Friday . The stock traded as high as $13.93 and last traded at $13.81, with a volume of 262308 shares traded. The stock had previously closed at $13.69.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. UBS Group upped their price target on Freshworks from $11.00 to $14.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Zacks Research downgraded shares of Freshworks from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 10th. Guggenheim started coverage on shares of Freshworks in a research report on Wednesday, July 22nd. They set a “buy” rating and a $25.00 target price on the stock. Morgan Stanley cut their target price on shares of Freshworks from $15.00 to $13.00 and set an “equal weight” rating for the company in a research note on Monday, May 11th. Finally, Cantor Fitzgerald increased their price target on shares of Freshworks from $12.00 to $15.00 and gave the company an “overweight” rating in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $14.17.

Freshworks Stock Performance

The firm’s 50-day moving average price is $11.13 and its two-hundred day moving average price is $9.39. The firm has a market capitalization of $3.63 billion, a price-to-earnings ratio of 21.72, a price-to-earnings-growth ratio of 10.76 and a beta of 0.86.

Freshworks (NASDAQ:FRSH) last posted its earnings results on Tuesday, August 4th. The company reported $0.17 earnings per share for the quarter, beating 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 for the quarter, compared to analysts’ expectations of $233.62 million. During the same quarter in the previous year, the firm posted $0.18 earnings per share. The firm’s revenue for the quarter 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. As a group, equities research analysts anticipate that Freshworks Inc. will post 0.04 EPS for the current year.

Insider Activity

In related news, Director Barry L. Padgett sold 6,618 shares of the firm’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $10.49, for a total transaction of $69,422.82. Following the completion of the transaction, the director owned 47,270 shares in the company, valued at $495,862.30. This trade represents a 12.28% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Philippa Lawrence sold 3,470 shares of the business’s stock in a transaction on Monday, July 6th. The shares were sold at an average price of $10.13, for a total value of $35,151.10. Following the completion of the sale, the chief accounting officer directly owned 456,144 shares in the company, valued at approximately $4,620,738.72. This represents a 0.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last ninety days, insiders have sold 27,236 shares of company stock worth $270,331. Company insiders own 8.54% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of FRSH. Generation Investment Management LLP bought a new stake in shares of Freshworks in the 2nd quarter worth about $6,392,000. Assenagon Asset Management S.A. bought a new position in Freshworks during the 2nd quarter valued at about $2,565,000. Healthcare of Ontario Pension Plan Trust Fund lifted its holdings in Freshworks by 403.4% during the 1st 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 purchasing an additional 1,157,277 shares during the last quarter. Principal Financial Group Inc. boosted its position in Freshworks by 80.7% in the first quarter. Principal Financial Group Inc. now owns 765,475 shares of the company’s stock valued at $6,147,000 after buying an additional 341,947 shares in the last quarter. Finally, Vanguard Group Inc. boosted its position in Freshworks by 3.5% in the fourth quarter. Vanguard Group Inc. now owns 27,240,469 shares of the company’s stock valued at $333,696,000 after buying an additional 922,549 shares in the last quarter. 75.58% of the stock is currently owned by institutional investors and hedge funds.

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.