Freshworks (NASDAQ:FRSH) Stock Rating Lowered by Wall Street Zen

Key Points

• Freshworks was downgraded by Wall Street Zen from buy to hold, adding to a series of recent cautious analyst calls on the stock.
• The broader analyst view is now mixed, with six Buy, eight Hold, and one Sell rating, giving Freshworks a consensus Hold and a $12.45 target price.
• Freshworks reported Q1 EPS of $0.11, matching expectations, and revenue of $228.63 million, above estimates; shares were trading around $8.83, down 2.2% in the session.

Freshworks (NASDAQ:FRSH - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

A number of other analysts have also recently commented on FRSH. Zacks Research cut shares of Freshworks from a "strong-buy" rating to a "hold" rating in a research report on Monday, January 12th. Canaccord Genuity Group set a $14.00 price objective on shares of Freshworks in a report on Wednesday, February 11th. Oppenheimer lowered shares of Freshworks from an "outperform" rating to a "market perform" rating in a report on Thursday, March 19th. Piper Sandler dropped their price objective on shares of Freshworks from $12.00 to $10.00 and set a "neutral" rating on the stock in a report on Wednesday, February 11th. Finally, Citizens Jmp dropped their price objective on shares of Freshworks from $27.00 to $16.00 and set a "market outperform" rating on the stock in a report on Wednesday, February 11th. Six analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Freshworks currently has a consensus rating of "Hold" and a consensus target price of $12.45.

Freshworks Trading Down 2.2%

Shares of FRSH opened at $8.83 on Friday. The stock has a market capitalization of $2.51 billion, a P/E ratio of 14.24 and a beta of 0.83. The firm's fifty day simple moving average is $8.22 and its two-hundred day simple moving average is $10.12. Freshworks has a 12 month low of $6.79 and a 12 month high of $16.14.

Freshworks (NASDAQ:FRSH - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.11 EPS for the quarter, meeting analysts' consensus estimates of $0.11. The business had revenue of $228.63 million for the quarter, compared to analysts' expectations of $223.64 million. Freshworks had a net margin of 20.69% and a return on equity of 4.27%. The business's quarterly revenue was up 16.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.18 earnings per share. 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 predict that Freshworks will post -0.09 EPS for the current fiscal year.

Insider Buying and Selling at Freshworks

In related news, insider Mika Yamamoto sold 32,577 shares of the company's stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $8.45, for a total value of $275,275.65. Following the sale, the insider owned 1,127,723 shares in the company, valued at $9,529,259.35. This represents a 2.81% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 8.54% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Freshworks

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Meeder Asset Management Inc. raised its holdings in shares of Freshworks by 164.0% in the 1st quarter. Meeder Asset Management Inc. now owns 6,156 shares of the company's stock worth $49,000 after acquiring an additional 3,824 shares during the last quarter. Swiss National Bank raised its holdings in shares of Freshworks by 4.4% in the 1st quarter. Swiss National Bank now owns 391,000 shares of the company's stock worth $3,140,000 after acquiring an additional 16,300 shares during the last quarter. Allspring Global Investments Holdings LLC raised its holdings in shares of Freshworks by 12.4% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 46,236 shares of the company's stock worth $373,000 after acquiring an additional 5,112 shares during the last quarter. Bank of New York Mellon Corp raised its holdings in shares of Freshworks by 12.8% in the 1st quarter. Bank of New York Mellon Corp now owns 1,168,094 shares of the company's stock worth $9,380,000 after acquiring an additional 132,443 shares during the last quarter. Finally, Principal Financial Group Inc. increased its stake in Freshworks by 80.7% in the 1st quarter. Principal Financial Group Inc. now owns 765,475 shares of the company's stock valued at $6,147,000 after buying an additional 341,947 shares during 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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