Freshworks (NASDAQ:FRSH) Given New $15.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo raised Freshworks’ price target to $15 from $10 while maintaining an “equal weight” rating, implying roughly 1.09% downside from the stock’s $15.16 price. Analysts collectively rate the stock “Moderate Buy,” with an average target of $14.85.
• Freshworks exceeded quarterly expectations, reporting $0.17 EPS versus the $0.13 consensus and $237.38 million in revenue, up 16% year over year.
• Institutional investors own 75.58% of Freshworks, while an insider sale of 52,767 shares was conducted under a pre-arranged plan to cover tax obligations tied to vested equity awards.

Freshworks (NASDAQ:FRSH - Get Free Report) had its price objective raised by stock analysts at Wells Fargo & Company from $10.00 to $15.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Wells Fargo & Company's price objective indicates a potential downside of 1.09% from the company's current price.

Other analysts have also issued research reports about the company. Piper Sandler raised their target price on Freshworks from $10.00 to $12.00 and gave the company a "neutral" rating in a report on Wednesday, August 5th. Weiss Ratings raised Freshworks from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, September 29th. Wall Street Zen upgraded Freshworks from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. UBS Group boosted their price objective on Freshworks from $11.00 to $14.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Finally, Robert W. Baird set a $13.00 target price on Freshworks in a research report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, Freshworks presently has an average rating of "Moderate Buy" and an average target price of $14.85.

Freshworks Price Performance

Freshworks stock traded up $0.27 during trading hours on Wednesday, hitting $15.16. The company had a trading volume of 620,047 shares, compared to its average volume of 9,813,324. The firm's fifty day moving average is $13.30 and its 200-day moving average is $10.41. Freshworks has a fifty-two week low of $6.79 and a fifty-two week high of $15.51. The firm has a market capitalization of $3.96 billion, a P/E ratio of 23.71 and a beta of 0.90.

Freshworks (NASDAQ:FRSH - Get Free Report) last posted its earnings results on Tuesday, August 4th. The company reported $0.17 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.13 by $0.04. The business had revenue of $237.38 million during the quarter, compared to analyst estimates of $233.62 million. Freshworks's revenue was up 16.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.18 earnings per share. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. Analysts anticipate that Freshworks will post 0.05 earnings per share for the current year.

Insider Activity

In related news, CAO Philippa Lawrence sold 52,767 shares of the business's stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $13.25, for a total transaction of $699,162.75. Following the completion of the transaction, the chief accounting officer owned 389,296 shares in the company, valued at approximately $5,158,172. The trade was a 11.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 8.54% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Freshworks

Institutional investors and hedge funds have recently modified their holdings of the business. Generation Investment Management LLP bought a new stake in Freshworks in the 2nd quarter valued at $6,392,000. Assenagon Asset Management S.A. bought a new position in Freshworks during the 2nd quarter worth $2,565,000. First Trust Advisors LP lifted its holdings in shares of Freshworks by 209.6% during the first quarter. First Trust Advisors LP now owns 262,849 shares of the company's stock worth $2,111,000 after buying an additional 177,963 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund lifted its holdings in shares of Freshworks by 403.4% during the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,444,124 shares of the company's stock worth $11,596,000 after buying an additional 1,157,277 shares in the last quarter. Finally, Principal Financial Group Inc. lifted its holdings in shares of Freshworks by 80.7% during the first quarter. Principal Financial Group Inc. now owns 765,475 shares of the company's stock worth $6,147,000 after buying an additional 341,947 shares in the last quarter. 75.58% of the stock is currently owned by institutional investors and hedge funds.

About Freshworks

Freshworks Inc NASDAQ: FRSH develops cloud-based customer and employee engagement software for businesses of various sizes. Its products are designed to help organizations manage customer support, IT service operations, sales activities, and marketing workflows through user-friendly, artificial intelligence-enabled applications.

The company's product portfolio includes Freshdesk for customer service and support, Freshservice for IT and enterprise service management, Freshsales for customer relationship management, and Freshmarketer for marketing automation and customer engagement.

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