Freshworks (NASDAQ:FRSH) Sees Large Volume Increase - Time to Buy?

Key Points

• Freshworks shares saw a sharp volume spike, with about 27.1 million shares traded, up 149% from the prior session, while the stock was last around $10.31, slightly below its previous close.
• Analyst sentiment is mixed but cautious: recent rating changes included upgrades from Zacks and downgrades from Wall Street Zen, Oppenheimer, Weiss, and Morgan Stanley, and the overall consensus rating is currently Hold with an average target price of $12.18.
• Recent earnings showed solid revenue growth, as Freshworks reported Q1 EPS of $0.11 in line with expectations and revenue of $228.63 million, up 16.5% year over year; the company also issued FY2026 and Q2 2026 guidance.

Freshworks Inc. (NASDAQ:FRSH - Get Free Report) shares saw an uptick in trading volume on Wednesday . Approximately 27,078,604 shares changed hands during mid-day trading, an increase of 149% from the previous session's volume of 10,858,627 shares.The stock last traded at $10.3050 and had previously closed at $10.38.

Analyst Upgrades and Downgrades

FRSH has been the topic of several analyst reports. Wall Street Zen lowered shares of Freshworks from a "buy" rating to a "hold" rating in a research note on Saturday, May 9th. Zacks Research raised Freshworks from a "hold" rating to a "strong-buy" rating in a research report on Thursday, May 7th. Oppenheimer lowered shares of Freshworks from an "outperform" rating to a "market perform" rating in a research report on Thursday, March 19th. Weiss Ratings lowered Freshworks from a "sell (d+)" rating to a "sell (d)" rating in a research note on Thursday, May 7th. Finally, Morgan Stanley dropped their price target on Freshworks from $15.00 to $13.00 and set an "equal weight" rating for the company in a report on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $12.18.

Freshworks Stock Down 0.6%

The business has a fifty day moving average price of $9.27 and a 200-day moving average price of $9.36. The company has a market cap of $2.85 billion, a P/E ratio of 16.62 and a beta of 0.88.

Freshworks (NASDAQ:FRSH - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.11 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.11. Freshworks had a return on equity of 4.27% and a net margin of 20.69%.The business had revenue of $228.63 million during the quarter, compared to analysts' expectations of $223.63 million. During the same period in the previous year, the company posted $0.18 earnings per share. The firm'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, research analysts expect that Freshworks Inc. will post -0.02 earnings per share for the current year.

Insiders Place Their Bets

In other Freshworks news, Director Jennifer H. Taylor sold 6,618 shares of the firm's stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $10.44, for a total value of $69,091.92. Following the transaction, the director directly owned 62,673 shares of the company's stock, valued at $654,306.12. This trade represents a 9.55% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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 3,470 shares of the company's stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $10.13, for a total transaction of $35,151.10. Following the sale, the chief accounting officer directly owned 456,144 shares of the company's stock, valued at approximately $4,620,738.72. This trade represents a 0.75% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 27,236 shares of company stock worth $270,331 over the last ninety days. Corporate insiders own 8.54% of the company's stock.

Hedge Funds Weigh In On Freshworks

A number of institutional investors have recently modified their holdings of FRSH. Summit Securities Group LLC bought a new position in Freshworks in the fourth quarter valued at about $26,000. IFP Advisors Inc boosted its stake in shares of Freshworks by 954.9% in the 4th quarter. IFP Advisors Inc now owns 2,152 shares of the company's stock valued at $26,000 after purchasing an additional 1,948 shares in the last quarter. Cullen Frost Bankers Inc. bought a new stake in shares of Freshworks during the 4th quarter valued at approximately $36,000. Allworth Financial LP grew its holdings in shares of Freshworks by 479.9% during the 4th quarter. Allworth Financial LP now owns 3,201 shares of the company's stock valued at $39,000 after purchasing an additional 2,649 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its position in Freshworks by 427.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,479 shares of the company's stock worth $67,000 after purchasing an additional 3,630 shares in the last quarter. Institutional investors and hedge funds own 75.58% of the company's stock.

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.

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