Freshworks (NASDAQ:FRSH) Lowered to “Hold” Rating by Zacks Research

Zacks Research cut shares of Freshworks (NASDAQ:FRSH) from a strong-buy rating to a hold rating in a research report released on Monday morning,Zacks.com reports.

FRSH has been the topic of several other reports. BTIG Research began coverage on shares of Freshworks in a research note on Tuesday, December 16th. They set a “neutral” rating on the stock. Wells Fargo & Company initiated coverage on shares of Freshworks in a research report on Tuesday, September 30th. They set an “equal weight” rating and a $13.00 price objective on the stock. Weiss Ratings restated a “sell (e+)” rating on shares of Freshworks in a research note on Wednesday, October 8th. Canaccord Genuity Group decreased their target price on Freshworks from $23.00 to $19.00 and set a “buy” rating for the company in a research report on Thursday, November 6th. Finally, UBS Group reiterated a “buy” rating and issued a $17.00 price target on shares of Freshworks in a report on Friday, November 14th. Seven research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Freshworks presently has an average rating of “Hold” and an average target price of $19.23.

Freshworks Price Performance

Shares of Freshworks stock traded up $0.10 on Monday, hitting $11.79. 692,744 shares of the company’s stock traded hands, compared to its average volume of 3,659,094. The company has a fifty day moving average of $12.14 and a two-hundred day moving average of $12.63. Freshworks has a one year low of $10.51 and a one year high of $19.77. The company has a market capitalization of $3.32 billion, a price-to-earnings ratio of -117.64 and a beta of 0.89.

Freshworks (NASDAQ:FRSH) last issued its earnings results on Wednesday, November 5th. The company reported $0.16 earnings per share for the quarter, topping analysts’ consensus estimates of $0.13 by $0.03. The business had revenue of $215.12 million during the quarter, compared to the consensus estimate of $208.80 million. Freshworks had a negative return on equity of 0.37% and a negative net margin of 3.65%.The firm’s revenue for the quarter was up 15.3% on a year-over-year basis. During the same period in the previous year, the company posted $0.11 earnings per share. Freshworks has set its Q4 2025 guidance at 0.100-0.120 EPS. Equities research analysts anticipate that Freshworks will post -0.19 earnings per share for the current year.

Insider Buying and Selling

In other Freshworks news, insider Mika Yamamoto sold 15,012 shares of the stock in a transaction dated Friday, December 5th. The shares were 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 is accessible through the SEC website. Also, insider Tyler Sloat purchased 171,615 shares of the firm’s stock in a transaction that occurred on Tuesday, November 11th. The shares were acquired at an average cost of $11.62 per share, with a total value of $1,994,166.30. Following the completion of the transaction, the insider directly owned 1,149,244 shares of the company’s stock, valued at $13,354,215.28. The trade was a 17.55% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have sold 22,267 shares of company stock worth $282,301. 11.17% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

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