Freshworks (NASDAQ:FRSH) Hits New 1-Year High - Still a Buy?

Key Points

• Freshworks shares reached a new 52-week high, trading as high as $14.99 and closing around $14.85, up 5.1% on the session.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $14.46 price target; KeyCorp issued an $18 target and an overweight rating.
• Freshworks exceeded quarterly earnings and revenue expectations, reporting $0.17 EPS and $237.38 million in revenue, while revenue grew 16% year over year. Institutional investors own 75.58% of the company, with several major funds increasing their positions.

Freshworks Inc. (NASDAQ:FRSH - Get Free Report) shares reached a new 52-week high during trading on Wednesday. The stock traded as high as $14.99 and last traded at $14.85, with a volume of 4,967,555 shares. The stock had previously closed at $14.13.

Analyst Ratings Changes

Several brokerages recently commented on FRSH. Wall Street Zen raised shares of Freshworks from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Cantor Fitzgerald reissued an "overweight" rating on shares of Freshworks in a research report on Tuesday, October 13th. Weiss Ratings raised shares of Freshworks from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, September 29th. KeyCorp assumed coverage on shares of Freshworks in a report on Monday, September 14th. They issued an "overweight" rating and a $18.00 price objective for the company. Finally, Piper Sandler upped their target price on shares of Freshworks from $10.00 to $12.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $14.46.

Freshworks Stock Up 5.1%

The company has a market capitalization of $3.87 billion, a P/E ratio of 78.50, a price-to-earnings-growth ratio of 9.42 and a beta of 0.90. The business has a 50 day moving average of $13.03 and a 200 day moving average of $10.78.

Freshworks (NASDAQ:FRSH - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $0.17 earnings per share for the quarter, topping the consensus estimate of $0.13 by $0.04. Freshworks had a net margin of 20.49% and a return on equity of 5.52%. The company had revenue of $237.38 million for the quarter, compared to analysts' expectations of $233.62 million. During the same quarter in the previous year, the business posted $0.18 earnings per share. Freshworks's quarterly revenue was up 16.0% on a year-over-year basis. 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 anticipate that Freshworks Inc. will post 0.05 EPS for the current year.

Insider Buying and Selling at Freshworks

In related news, CAO Philippa Lawrence sold 3,492 shares of the business's stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $12.98, for a total value of $45,326.16. Following the completion of the sale, the chief accounting officer owned 379,639 shares in the company, valued at approximately $4,927,714.22. The trade was a 0.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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. Corporate insiders own 8.54% of the company's stock.

Hedge Funds Weigh In On Freshworks

Institutional investors have recently bought and sold shares of the business. Wellington Management Group LLP raised its position in shares of Freshworks by 9.7% in the 2nd quarter. Wellington Management Group LLP now owns 4,000,543 shares of the company's stock worth $40,485,000 after acquiring an additional 353,714 shares in the last quarter. Renaissance Technologies LLC lifted its position in Freshworks by 79.1% during the first quarter. Renaissance Technologies LLC now owns 4,576,000 shares of the company's stock valued at $36,745,000 after acquiring an additional 2,021,412 shares during the last quarter. Bank of America Corp DE grew its holdings in Freshworks by 1.4% in the first quarter. Bank of America Corp DE now owns 2,128,268 shares of the company's stock worth $17,090,000 after purchasing an additional 30,395 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund grew its stake 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 worth $11,596,000 after buying an additional 1,157,277 shares during the last quarter. Finally, Walleye Capital LLC raised its stake in Freshworks by 2,480.8% in the first quarter. Walleye Capital LLC now owns 1,247,655 shares of the company's stock valued at $10,019,000 after buying an additional 1,199,311 shares during the last quarter. 75.58% of the stock is owned by hedge funds and other institutional investors.

About Freshworks

Freshworks Inc NASDAQ: FRSH develops cloud-based customer and employee engagement software for businesses of various sizes. Its products are designed to help organizations manage customer support, IT service operations, sales activities, and marketing workflows through user-friendly, artificial intelligence-enabled applications.

The company's product portfolio includes Freshdesk for customer service and support, Freshservice for IT and enterprise service management, Freshsales for customer relationship management, and Freshmarketer for marketing automation and customer engagement.

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