Freshworks (NASDAQ:FRSH) Stock Price Down 9.6% - Time to Sell?

Key Points

• Freshworks (NASDAQ:FRSH) shares fell 9.6% to about $8.06 on Thursday, trading as low as $8.08 on roughly 2.01 million shares (a 71% drop vs. average daily volume).
• Analyst sentiment is mixed — the consensus rating is "Hold" with a $12.92 average price target, while broker targets range from $11 to $15 and ratings include 6 Buys, 9 Holds and 1 Sell.
• Fundamentals show a recent quarterly beat (EPS $0.14 vs. $0.11 est., revenue $222.7M, +14.5% YoY) and management issued Q1 and FY2026 EPS guidance (Q1: $0.10–$0.12; FY: $0.55–$0.57), even as an insider sold shares and institutions own about 75.6% of the stock.

Freshworks Inc. (NASDAQ:FRSH - Get Free Report)'s stock price was down 9.6% on Thursday . The company traded as low as $8.08 and last traded at $8.0550. Approximately 2,012,445 shares changed hands during trading, a decline of 71% from the average daily volume of 6,875,614 shares. The stock had previously closed at $8.91.

Analyst Ratings Changes

A number of equities analysts recently weighed in on FRSH shares. Wall Street Zen raised shares of Freshworks from a "hold" rating to a "buy" rating in a research report on Monday, April 6th. Zacks Research cut shares of Freshworks from a "strong-buy" rating to a "hold" rating in a research report on Monday, January 12th. Oppenheimer cut shares of Freshworks from an "outperform" rating to a "market perform" rating in a research report on Thursday, March 19th. UBS Group set a $11.00 price objective on shares of Freshworks in a research report on Wednesday, February 11th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $15.00 price objective on shares of Freshworks in a research report on Wednesday, February 11th. Six research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $12.92.

Freshworks Stock Down 7.9%

The business has a 50-day moving average price of $7.99 and a two-hundred day moving average price of $10.29. The firm has a market cap of $2.33 billion, a PE ratio of 12.78 and a beta of 0.87.

Freshworks (NASDAQ:FRSH - Get Free Report) last posted its quarterly earnings data on Tuesday, February 10th. The company reported $0.14 earnings per share for the quarter, topping analysts' consensus estimates of $0.11 by $0.03. Freshworks had a return on equity of 4.69% and a net margin of 21.90%.The business had revenue of $222.74 million for the quarter, compared to analyst estimates of $218.76 million. During the same quarter in the prior year, the company earned $0.14 earnings per share. The company's 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. On average, equities research analysts predict that Freshworks Inc. will post -0.1 earnings per share for the current fiscal year.

Insider Buying and Selling at Freshworks

In other news, insider Mika Yamamoto sold 32,577 shares of Freshworks stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $8.45, for a total transaction of $275,275.65. Following the completion of the sale, the insider directly owned 1,127,723 shares of the company's stock, valued at approximately $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 accessible through the SEC website. Corporate insiders own 11.17% of the company's stock.

Institutional Investors Weigh In On Freshworks

Several institutional investors have recently modified their holdings of FRSH. Royal Bank of Canada lifted its position in shares of Freshworks by 120.8% during 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 during the last quarter. Amundi lifted its position in shares of Freshworks by 1.3% during the 1st quarter. Amundi now owns 80,074 shares of the company's stock worth $1,049,000 after purchasing an additional 1,040 shares during the last quarter. Goldman Sachs Group Inc. lifted its position in shares of Freshworks by 35.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,225,056 shares of the company's stock worth $31,396,000 after purchasing an additional 578,628 shares during the last quarter. Woodline Partners LP raised its stake in 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 acquiring an additional 2,571 shares in the last quarter. Finally, Focus Partners Wealth raised its stake in 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 acquiring an additional 2,086 shares in the last quarter. 75.58% of the stock is 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.

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