Freshworks (NASDAQ:FRSH) Reaches New 12-Month High - Should You Buy?

Key Points

• Freshworks shares reached a new 52-week high of $14.42, trading up 5.3% and above both their 50-day and 200-day moving averages. The company has a $3.76 billion market capitalization and a P/E ratio of 22.46.
• Analyst sentiment is moderately bullish: Freshworks has an average “Moderate Buy” rating and a consensus price target of $14.46, though ratings include seven Buys, eight Holds, and one Strong Buy.
• Recent quarterly results exceeded expectations, with adjusted EPS of $0.17 versus the $0.13 consensus and revenue of $237.38 million, up 16% year over year. An insider sale was disclosed as part of a pre-arranged plan to cover tax obligations, while institutional investors own 75.58% of the stock.

Freshworks Inc. (NASDAQ:FRSH - Get Free Report)'s stock price reached a new 52-week high during trading on Thursday. The company traded as high as $14.42 and last traded at $14.2680, with a volume of 844,329 shares traded. The stock had previously closed at $13.69.

Wall Street Analyst Weigh In

FRSH has been the topic of several research reports. UBS Group upped their price target on Freshworks from $11.00 to $14.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Piper Sandler lifted their price objective on shares of Freshworks from $10.00 to $12.00 and gave the stock a "neutral" rating in a report on Wednesday, August 5th. Zacks Research cut shares of Freshworks from a "strong-buy" rating to a "hold" rating in a report on Friday, July 10th. Guggenheim started coverage on shares of Freshworks in a research report on Wednesday, July 22nd. They issued a "buy" rating and a $25.00 price target on the stock. Finally, Wall Street Zen raised shares of Freshworks from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $14.46.

Freshworks Trading Up 5.3%

The business's 50-day simple moving average is $12.83 and its 200 day simple moving average is $10.61. The company has a market capitalization of $3.76 billion, a P/E ratio of 22.46, a P/E/G ratio of 9.27 and a beta of 0.90.

Freshworks (NASDAQ:FRSH - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.17 EPS for the quarter, topping analysts' consensus estimates of $0.13 by $0.04. The company had revenue of $237.38 million for the quarter, compared to the consensus estimate of $233.62 million. Freshworks had a return on equity of 5.52% and a net margin of 20.49%. The company's quarterly revenue was up 16.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.18 EPS. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. As a group, sell-side analysts predict that Freshworks Inc. will post 0.05 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CAO Philippa Lawrence sold 52,767 shares of Freshworks stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $13.25, for a total transaction of $699,162.75. Following the completion of the sale, the chief accounting officer owned 389,296 shares of the company's stock, valued at approximately $5,158,172. This trade represents a 11.94% decrease in their ownership of the stock. The transaction 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.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Nykredit A S bought a new stake in shares of Freshworks during the 2nd quarter worth about $28,000. IFP Advisors Inc raised its stake in shares of Freshworks by 51.6% in the 2nd quarter. IFP Advisors Inc now owns 8,120 shares of the company's stock valued at $82,000 after acquiring an additional 2,765 shares in the last quarter. Meeder Asset Management Inc. lifted its holdings in 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 purchasing an additional 3,824 shares during the last quarter. Summit Securities Group LLC boosted its position in Freshworks by 186.3% during the first quarter. Summit Securities Group LLC now owns 6,043 shares of the company's stock worth $49,000 after purchasing an additional 3,932 shares during the period. Finally, Optiver Holding B.V. boosted its position in Freshworks by 277.1% during the first quarter. Optiver Holding B.V. now owns 6,211 shares of the company's stock worth $50,000 after purchasing an additional 4,564 shares during the period. Institutional investors own 75.58% of the company's stock.

Freshworks Company Profile

Freshworks Inc NASDAQ: FRSH develops cloud-based software designed to help businesses manage customer and employee experiences. Its products are intended for organizations of various sizes and emphasize ease of use, rapid deployment and integration with other business applications.

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

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