Freshworks (NASDAQ:FRSH) Sees Large Volume Increase - Here's What Happened

Key Points

• Shares saw unusually strong trading volume — about 20,771,816 shares changed hands, a 214% increase from the prior session, while the stock traded near $8.88 (up roughly 1.1%).
• Freshworks beat quarterly expectations with $0.14 EPS vs. $0.11 estimate and $222.74M in revenue (up 14.5% YoY), and issued Q1 2026 EPS guidance of 0.100–0.120 and FY2026 guidance of 0.550–0.570.
• Analysts are mixed: the consensus rating is "Hold" with an average price target of $12.92 (six Buy, nine Hold, one Sell), and several firms recently trimmed their targets.

Shares of Freshworks Inc. (NASDAQ:FRSH - Get Free Report) saw unusually-strong trading volume on Tuesday . Approximately 20,771,816 shares traded hands during mid-day trading, an increase of 214% from the previous session's volume of 6,612,027 shares.The stock last traded at $8.8750 and had previously closed at $8.78.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on FRSH. Cantor Fitzgerald lowered their target price on shares of Freshworks from $15.00 to $12.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 11th. Wall Street Zen raised shares of Freshworks from a "hold" rating to a "buy" rating in a research note on Monday, April 6th. Canaccord Genuity Group set a $14.00 price target on shares of Freshworks in a research note on Wednesday, February 11th. Robert W. Baird set a $10.00 price target on shares of Freshworks in a research note on Wednesday, February 11th. Finally, Citizens Jmp decreased their price target on shares of Freshworks from $27.00 to $16.00 and set a "market outperform" rating on the stock in a research note on Wednesday, February 11th. Six investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $12.92.

Freshworks Trading Up 1.1%

The stock has a market cap of $2.52 billion, a P/E ratio of 13.88 and a beta of 0.87. The stock's fifty day moving average price is $7.95 and its 200 day moving average price is $10.32.

Freshworks (NASDAQ:FRSH - Get Free Report) last announced its earnings results on Tuesday, February 10th. The company reported $0.14 EPS for the quarter, beating analysts' consensus estimates of $0.11 by $0.03. Freshworks had a net margin of 21.90% and a return on equity of 4.69%. The firm had revenue of $222.74 million for the quarter, compared to analysts' expectations of $218.76 million. During the same quarter in the previous year, the business posted $0.14 EPS. The company's quarterly revenue was up 14.5% on a year-over-year basis. Freshworks has set its Q1 2026 guidance at 0.100-0.120 EPS and its FY 2026 guidance at 0.550-0.570 EPS. As a group, sell-side analysts forecast that Freshworks Inc. will post -0.1 earnings per share for the current year.

Insider Activity

In other news, insider Mika Yamamoto sold 32,577 shares of Freshworks stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $8.45, for a total value of $275,275.65. Following the completion of the transaction, the insider owned 1,127,723 shares of the company's stock, valued at $9,529,259.35. The trade was a 2.81% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 11.17% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Freshworks

Large investors have recently modified their holdings of the stock. Nordea Investment Management AB purchased a new position in shares of Freshworks in the 3rd quarter worth about $5,083,000. Clark Capital Management Group Inc. raised its position in Freshworks by 82.3% in the 3rd quarter. Clark Capital Management Group Inc. now owns 746,671 shares of the company's stock worth $8,788,000 after buying an additional 337,138 shares during the last quarter. Topline Capital Management LLC raised its position in Freshworks by 43.0% in the 3rd quarter. Topline Capital Management LLC now owns 2,765,000 shares of the company's stock worth $32,544,000 after buying an additional 831,787 shares during the last quarter. Newlands Management Operations LLC purchased a new position in Freshworks in the 3rd quarter worth about $5,410,000. Finally, Tudor Investment Corp ET AL purchased a new position in Freshworks in the 3rd quarter worth about $1,984,000. Hedge funds and other institutional investors 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.

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