Freshworks Inc. (NASDAQ:FRSH) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Freshworks has a “Moderate Buy” consensus rating from 16 analysts: nine holds, six buys, and one strong buy. The average 12-month price target is $14.17.
• The company beat quarterly expectations, reporting adjusted EPS of $0.17 versus a $0.13 consensus and revenue of $237.38 million, up 16% year over year.
• Institutional investors own 75.58% of Freshworks, while insiders sold $969,494 worth of shares in the last quarter. The stock recently opened at $12.10, below the analyst average target but near its 52-week high of $13.99.

Freshworks Inc. (NASDAQ:FRSH - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the sixteen ratings firms that are covering the firm, Marketbeat Ratings reports. Nine analysts have rated the stock with a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $14.1667.

A number of equities research analysts have weighed in on FRSH shares. Guggenheim started coverage on shares of Freshworks in a research note on Wednesday, July 22nd. They set a "buy" rating and a $25.00 target price for the company. Piper Sandler raised their price target on Freshworks from $10.00 to $12.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 5th. Zacks Research lowered Freshworks from a "strong-buy" rating to a "hold" rating in a report on Friday, July 10th. Robert W. Baird set a $13.00 price objective on Freshworks in a research report on Wednesday, August 5th. Finally, Wall Street Zen raised Freshworks from a "hold" rating to a "buy" rating in a report on Saturday, August 8th.

Insider Activity

In related news, Director Jennifer H. Taylor sold 6,618 shares of the business's stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $10.44, for a total transaction of $69,091.92. Following the completion of the sale, the director directly owned 62,673 shares in the company, valued at approximately $654,306.12. The trade was a 9.55% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Philippa Lawrence sold 52,767 shares of the company'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 sale, the chief accounting officer directly owned 389,296 shares of the company's stock, valued at approximately $5,158,172. This represents a 11.94% decrease in their ownership of the stock. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 80,003 shares of company stock valued at $969,494 in the last quarter. 8.54% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Royal Bank of Canada increased its stake in shares of Freshworks by 120.8% in the 1st 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 in the last quarter. Amundi grew its holdings in Freshworks by 1.3% during the first quarter. Amundi now owns 80,074 shares of the company's stock valued at $1,049,000 after purchasing an additional 1,040 shares during the period. Goldman Sachs Group Inc. grew its holdings in Freshworks by 35.1% during the first 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 during the period. Woodline Partners LP increased its position in Freshworks by 13.5% in the first quarter. Woodline Partners LP now owns 21,569 shares of the company's stock worth $304,000 after buying an additional 2,571 shares in the last quarter. Finally, Focus Partners Wealth increased its position in Freshworks by 20.2% in the first quarter. Focus Partners Wealth now owns 12,399 shares of the company's stock worth $175,000 after buying an additional 2,086 shares in the last quarter. Hedge funds and other institutional investors own 75.58% of the company's stock.

Freshworks Stock Down 4.9%

Shares of NASDAQ FRSH opened at $12.10 on Wednesday. The firm's 50-day moving average price is $11.72 and its 200-day moving average price is $9.70. Freshworks has a 52-week low of $6.79 and a 52-week high of $13.99. The company has a market cap of $3.16 billion, a PE ratio of 18.91, a PEG ratio of 10.61 and a beta of 0.89.

Freshworks (NASDAQ:FRSH - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.04. Freshworks had a net margin of 20.49% and a return on equity of 5.52%. The firm had revenue of $237.38 million during the quarter, compared to analysts' expectations of $233.62 million. During the same period in the previous year, the company earned $0.18 earnings per share. The firm's quarterly revenue was up 16.0% on a year-over-year basis. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. As a group, equities research analysts anticipate that Freshworks will post 0.04 EPS for the current fiscal year.

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.

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