Freshworks (NASDAQ:FRSH) Sees Strong Trading Volume – Still a Buy?

Freshworks Inc. (NASDAQ:FRSH) shares saw unusually-high trading volume on Wednesday . 31,211,912 shares changed hands during mid-day trading, an increase of 238% from the previous session’s volume of 9,239,340 shares.The stock last traded at $9.4390 and had previously closed at $9.19.

Analysts Set New Price Targets

A number of research firms have issued reports on FRSH. Weiss Ratings cut shares of Freshworks from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, May 7th. Wall Street Zen lowered shares of Freshworks from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Zacks Research upgraded shares of Freshworks from a “hold” rating to a “strong-buy” rating in a report on Thursday, May 7th. Morgan Stanley reduced their price objective 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, Oppenheimer cut shares of Freshworks from an “outperform” rating to a “market perform” rating in a report on Thursday, March 19th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Freshworks currently has a consensus rating of “Hold” and an average target price of $12.18.

Freshworks Trading Up 1.9%

The stock has a market capitalization of $2.59 billion, a price-to-earnings ratio of 15.14 and a beta of 0.89. The company has a fifty day moving average of $8.94 and a two-hundred day moving average of $9.56.

Freshworks (NASDAQ:FRSH) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.11 EPS for the quarter, meeting the consensus estimate of $0.11. Freshworks had a return on equity of 4.27% and a net margin of 20.69%.The company had revenue of $228.63 million for the quarter, compared to the consensus estimate of $223.63 million. During the same quarter last year, the company posted $0.18 earnings per share. The company’s revenue for the quarter was up 16.5% compared to the same quarter last year. Freshworks has set its FY 2026 guidance at 0.610-0.630 EPS and its Q2 2026 guidance at 0.130-0.130 EPS. As a group, sell-side analysts predict that Freshworks Inc. will post -0.02 earnings per share for the current fiscal year.

Insider Transactions at Freshworks

In related news, CAO Philippa Lawrence sold 10,530 shares of Freshworks stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $9.18, for a total value of $96,665.40. Following the transaction, the chief accounting officer owned 465,823 shares in the company, valued at $4,276,255.14. This trade represents a 2.21% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 8.54% of the company’s stock.

Institutional Investors Weigh In On Freshworks

A number of hedge funds have recently bought and sold shares of FRSH. Royal Bank of Canada increased its stake in shares of Freshworks by 120.8% in the first 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 boosted its stake in Freshworks by 1.3% during the 1st quarter. Amundi now owns 80,074 shares of the company’s stock valued at $1,049,000 after purchasing an additional 1,040 shares during the period. Goldman Sachs Group Inc. grew its holdings in Freshworks by 35.1% in the 1st 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 last quarter. Woodline Partners LP grew its holdings in Freshworks by 13.5% in the 1st 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 last quarter. Finally, Focus Partners Wealth increased its position in Freshworks by 20.2% in the 1st quarter. Focus Partners Wealth now owns 12,399 shares of the company’s stock worth $175,000 after buying an additional 2,086 shares during the period. 75.58% of the stock is currently owned by institutional investors.

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.