Freshworks (NASDAQ:FRSH) Upgraded to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded Freshworks from “hold” to “buy,” while broader analyst sentiment remains “Hold” with an average price target of $14.17.
• Freshworks reported quarterly EPS of $0.17, exceeding the $0.13 consensus estimate, while revenue reached $237.38 million and grew 16% year over year.
• The stock opened at $11.83, up 2.1%, with institutional investors owning 75.58% of shares; insiders sold $270,331 worth of stock over the past 90 days.

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

A number of other research firms have also recently commented on FRSH. Citigroup reiterated a "market outperform" rating on shares of Freshworks in a research note on Tuesday, June 2nd. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Freshworks in a research report on Tuesday. Robert W. Baird set a $13.00 target price on shares of Freshworks in a research note on Wednesday. Guggenheim assumed coverage on shares of Freshworks in a research note on Wednesday, July 22nd. They set a "buy" rating and a $25.00 price target for the company. Finally, Cantor Fitzgerald increased their price objective on Freshworks from $12.00 to $15.00 and gave the company an "overweight" rating in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Freshworks currently has an average rating of "Hold" and an average target price of $14.17.

Freshworks Stock Up 2.1%

FRSH stock opened at $11.83 on Friday. The firm has a market cap of $3.27 billion, a PE ratio of 18.48 and a beta of 0.86. The business has a 50 day moving average of $10.24 and a 200-day moving average of $9.20. Freshworks has a 12-month low of $6.79 and a 12-month high of $14.06.

Freshworks (NASDAQ:FRSH - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $0.17 EPS for the quarter, topping analysts' consensus estimates of $0.13 by $0.04. The business had revenue of $237.38 million for the quarter, compared to analyst estimates of $233.62 million. Freshworks had a return on equity of 5.52% and a net margin of 20.49%.Freshworks's quarterly revenue was up 16.0% compared to the same quarter last year. During the same period last year, the company posted $0.18 earnings per share. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. On average, research analysts expect that Freshworks will post -0.01 earnings per share for the current year.

Insider Activity at Freshworks

In other news, Director Barry L. Padgett sold 6,618 shares of Freshworks stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $10.49, for a total value of $69,422.82. Following the sale, the director directly owned 47,270 shares in the company, valued at approximately $495,862.30. This trade represents a 12.28% decrease in their position. The sale 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 Freshworks stock in a transaction on Monday, July 6th. The shares were sold at an average price of $10.13, for a total transaction of $35,151.10. Following the completion of the sale, the chief accounting officer owned 456,144 shares in the company, valued at approximately $4,620,738.72. This trade represents a 0.75% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 27,236 shares of company stock worth $270,331 in the last ninety days. 8.54% of the stock is owned by company insiders.

Hedge Funds Weigh In On Freshworks

Several institutional investors and hedge funds have recently added to or reduced their stakes in FRSH. Tudor Investment Corp ET AL purchased a new stake in shares of Freshworks in the 3rd quarter worth approximately $1,984,000. Healthcare of Ontario Pension Plan Trust Fund increased its position in Freshworks by 403.4% during the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,444,124 shares of the company's stock valued at $11,596,000 after buying an additional 1,157,277 shares in the last quarter. Principal Financial Group Inc. raised its stake in Freshworks by 80.7% during the first 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. Vanguard Group Inc. boosted its stake in Freshworks by 3.5% in the 4th quarter. Vanguard Group Inc. now owns 27,240,469 shares of the company's stock worth $333,696,000 after purchasing an additional 922,549 shares in the last quarter. Finally, Bank of New York Mellon Corp raised its holdings in Freshworks by 12.8% in the first quarter. Bank of New York Mellon Corp now owns 1,168,094 shares of the company's stock worth $9,380,000 after buying an additional 132,443 shares during the last quarter. 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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