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

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

A number of other equities analysts have also weighed in on FRSH. Canaccord Genuity Group decreased their price objective on shares of Freshworks from $23.00 to $19.00 and set a “buy” rating for the company in a report on Thursday, November 6th. Piper Sandler dropped their price objective on Freshworks from $25.00 to $20.00 and set an “overweight” rating on the stock in a research report on Friday, November 7th. Wall Street Zen cut shares of Freshworks from a “strong-buy” rating to a “buy” rating in a research note on Saturday, December 20th. BTIG Research initiated coverage on shares of Freshworks in a research report on Tuesday, December 16th. They set a “neutral” rating on the stock. Finally, UBS Group reiterated a “buy” rating and set a $17.00 target price on shares of Freshworks in a research note on Friday, November 14th. Seven equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $19.23.

Freshworks Stock Down 3.4%

FRSH stock opened at $11.69 on Monday. The business has a 50 day moving average of $12.14 and a 200 day moving average of $12.63. The firm has a market cap of $3.30 billion, a PE ratio of -116.89 and a beta of 0.89. Freshworks has a twelve month low of $10.51 and a twelve month high of $19.77.

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

Insider Buying and Selling

In other news, insider Tyler Sloat acquired 171,615 shares of Freshworks stock in a transaction dated Tuesday, November 11th. The stock was purchased at an average cost of $11.62 per share, with a total value of $1,994,166.30. Following the completion of the purchase, the insider directly owned 1,149,244 shares in the company, valued at approximately $13,354,215.28. This trade represents a 17.55% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Philippa Lawrence sold 5,846 shares of the business’s stock in a transaction dated Tuesday, December 2nd. The shares were sold at an average price of $12.06, for a total value of $70,502.76. Following the completion of the transaction, the chief accounting officer owned 392,711 shares in the company, valued at $4,736,094.66. The trade was a 1.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 22,267 shares of company stock worth $282,301. Corporate insiders own 11.17% of the company’s stock.

Institutional Inflows and Outflows

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