Freshworks (NASDAQ:FRSH) Shares Gap Down – Should You Sell?

Freshworks Inc. (NASDAQ:FRSH)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $10.17, but opened at $9.75. Freshworks shares last traded at $10.1750, with a volume of 566,232 shares changing hands.

Wall Street Analyst Weigh In

FRSH has been the subject of several recent research reports. Oppenheimer downgraded Freshworks from an “outperform” rating to a “market perform” rating in a research note on Thursday, March 19th. Morgan Stanley decreased their price target 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. Citigroup reissued a “market outperform” rating on shares of Freshworks in a research note on Tuesday, June 2nd. Weiss Ratings cut shares of Freshworks from a “sell (d+)” rating to a “sell (d)” rating in a research report on Thursday, May 7th. Finally, Zacks Research raised shares of Freshworks from a “hold” rating to a “strong-buy” rating in a report on Thursday, May 7th. 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 issued a Sell rating to the stock. Based on data from MarketBeat, Freshworks presently has a consensus rating of “Hold” and a consensus price target of $12.18.

Freshworks Price Performance

The firm has a market capitalization of $2.86 billion, a P/E ratio of 16.71 and a beta of 0.88. The firm has a 50-day moving average price of $9.39 and a two-hundred day moving average price of $9.34.

Freshworks (NASDAQ:FRSH) last issued its earnings results on Tuesday, May 5th. The company reported $0.11 EPS for the quarter, hitting analysts’ consensus estimates of $0.11. Freshworks had a net margin of 20.69% and a return on equity of 4.27%. The business had revenue of $228.63 million for the quarter, compared to the consensus estimate of $223.63 million. During the same period in the prior year, the firm earned $0.18 EPS. 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. Sell-side analysts predict that Freshworks Inc. will post -0.02 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CAO Philippa Lawrence sold 10,530 shares of Freshworks stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $9.18, for a total value of $96,665.40. Following the transaction, the chief accounting officer directly owned 465,823 shares in the company, valued at approximately $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 can be accessed through this hyperlink. Also, Director Jennifer H. Taylor sold 6,618 shares of Freshworks stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $10.44, for a total value of $69,091.92. Following the completion of the transaction, the director owned 62,673 shares in the company, valued at $654,306.12. This trade represents a 9.55% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 27,236 shares of company stock worth $270,331 in the last three months. Corporate insiders own 8.54% of the company’s stock.

Hedge Funds Weigh In On Freshworks

Several hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. lifted its position in Freshworks by 3.5% during the 4th quarter. Vanguard Group Inc. now owns 27,240,469 shares of the company’s stock worth $333,696,000 after acquiring an additional 922,549 shares during the period. Wellington Management Group LLP raised its holdings in Freshworks by 9.2% in the 4th quarter. Wellington Management Group LLP now owns 5,359,784 shares of the company’s stock worth $65,657,000 after purchasing an additional 453,627 shares during the period. Geode Capital Management LLC raised its position in Freshworks by 1.9% during the fourth quarter. Geode Capital Management LLC now owns 5,126,112 shares of the company’s stock worth $62,805,000 after acquiring an additional 95,720 shares during the period. State Street Corp lifted its stake in Freshworks by 1.2% in the 4th quarter. State Street Corp now owns 4,904,684 shares of the company’s stock valued at $60,082,000 after buying an additional 56,935 shares in the last quarter. Finally, Fuller & Thaler Asset Management Inc. boosted its stake in shares of Freshworks by 11.2% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 4,748,985 shares of the company’s stock worth $58,175,000 after acquiring an additional 478,473 shares during the last quarter. Institutional investors and hedge funds 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.