Freshworks (NASDAQ:FRSH) Shares Gap Down – Here’s What Happened

Freshworks Inc. (NASDAQ:FRSH)’s stock price gapped down before the market opened 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 trading hands.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Wall Street Zen cut Freshworks from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Citigroup reaffirmed a “market outperform” rating on shares of Freshworks in a research note on Tuesday, June 2nd. Zacks Research upgraded Freshworks from a “hold” rating to a “strong-buy” rating in a research report on Thursday, May 7th. Weiss Ratings downgraded shares of Freshworks from a “sell (d+)” rating to a “sell (d)” rating in a research note on Thursday, May 7th. Finally, Morgan Stanley reduced their target price on shares of Freshworks from $15.00 to $13.00 and set an “equal weight” rating on the stock in a report on Monday, May 11th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $12.18.

Freshworks Stock Performance

The company has a fifty day simple moving average of $9.31 and a two-hundred day simple moving average of $9.35. The company has a market capitalization of $2.84 billion, a price-to-earnings ratio of 16.52 and a beta of 0.88.

Freshworks (NASDAQ:FRSH) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.11 earnings per share for the quarter, hitting analysts’ consensus estimates 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 analyst estimates of $223.63 million. During the same quarter in the prior year, the company posted $0.18 EPS. The business’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, analysts expect that Freshworks Inc. will post -0.02 EPS for the current year.

Insider Buying and Selling

In other Freshworks news, CAO Philippa Lawrence sold 10,530 shares of Freshworks stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $9.18, for a total value of $96,665.40. Following the completion of the sale, the chief accounting officer owned 465,823 shares in the company, valued at $4,276,255.14. The trade was a 2.21% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Barry L. Padgett sold 6,618 shares of the company’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $10.49, for a total transaction of $69,422.82. Following the transaction, the director directly owned 47,270 shares of the company’s stock, valued at approximately $495,862.30. This represents a 12.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 27,236 shares of company stock worth $270,331. 8.54% of the stock is owned by company insiders.

Institutional Investors Weigh In On Freshworks

A number of institutional investors have recently bought and sold shares of FRSH. Royal Bank of Canada raised its stake in Freshworks by 120.8% during 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 lifted its stake in shares of Freshworks by 1.3% in 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 in the last quarter. Goldman Sachs Group Inc. lifted its stake in shares of 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 purchasing an additional 578,628 shares in the last quarter. Woodline Partners LP grew its holdings in shares of Freshworks by 13.5% during the 1st quarter. Woodline Partners LP now owns 21,569 shares of the company’s stock worth $304,000 after purchasing an additional 2,571 shares during the period. Finally, Focus Partners Wealth grew its holdings in shares of Freshworks by 20.2% during the 1st quarter. Focus Partners Wealth now owns 12,399 shares of the company’s stock worth $175,000 after purchasing an additional 2,086 shares during the period. 75.58% of the stock is currently owned by hedge funds and other 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.