Zacks Research Downgrades Freshworks (NASDAQ:FRSH) to Hold

Freshworks (NASDAQ:FRSH) was downgraded by analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Monday,Zacks.com reports.

Other analysts have also recently issued research reports about the company. Wells Fargo & Company assumed coverage on Freshworks in a research report on Tuesday, September 30th. They set an “equal weight” rating and a $13.00 target price on the stock. Canaccord Genuity Group decreased their target price on shares of Freshworks from $23.00 to $19.00 and set a “buy” rating for the company in a research note on Thursday, November 6th. Robert W. Baird lowered their price target on shares of Freshworks from $18.00 to $16.00 and set a “neutral” rating on the stock in a report on Monday, September 15th. Weiss Ratings restated a “sell (e+)” rating on shares of Freshworks in a research report on Wednesday, October 8th. Finally, UBS Group restated a “buy” rating and set a $17.00 target price on shares of Freshworks in a research report on Friday, November 14th. Seven equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $19.23.

Freshworks Trading Up 0.2%

FRSH traded up $0.03 during trading on Monday, hitting $11.72. 713,954 shares of the company traded hands, compared to its average volume of 3,675,642. The company has a market cap of $3.30 billion, a PE ratio of -117.84 and a beta of 0.89. The stock’s 50-day simple moving average is $12.14 and its two-hundred day simple moving average is $12.63. Freshworks has a 1 year low of $10.51 and a 1 year high of $19.77.

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

Insiders Place Their Bets

In other Freshworks news, CAO Philippa Lawrence sold 5,846 shares of Freshworks stock in a transaction dated Tuesday, December 2nd. The shares were sold at an average price of $12.06, for a total transaction of $70,502.76. Following the completion of the sale, the chief accounting officer directly owned 392,711 shares in the company, valued at $4,736,094.66. This trade represents a 1.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Mika Yamamoto sold 15,012 shares of the stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $13.00, for a total transaction of $195,156.00. Following the transaction, the insider directly owned 490,350 shares of the company’s stock, valued at $6,374,550. The trade was a 2.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 22,267 shares of company stock worth $282,301 over the last ninety days. Company insiders own 11.17% of the company’s stock.

Institutional Trading of Freshworks

Hedge funds have recently added to or reduced their stakes in the company. BNP PARIBAS ASSET MANAGEMENT Holding S.A. acquired a new position in shares of Freshworks during the second quarter worth $25,000. Rothschild Investment LLC boosted its holdings in Freshworks by 560.0% in the third quarter. Rothschild Investment LLC now owns 2,277 shares of the company’s stock valued at $27,000 after purchasing an additional 1,932 shares in the last quarter. Meeder Asset Management Inc. purchased a new position in Freshworks in the third quarter valued at approximately $27,000. SBI Securities Co. Ltd. lifted its position in shares of Freshworks by 136.2% during the 3rd quarter. SBI Securities Co. Ltd. now owns 2,745 shares of the company’s stock worth $32,000 after buying an additional 1,583 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its position in shares of Freshworks by 427.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,479 shares of the company’s stock worth $67,000 after buying an additional 3,630 shares during the last quarter. Institutional investors and hedge funds own 75.58% of the company’s stock.

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.