Freshworks (NASDAQ:FRSH) Trading Down 4.7% Following Insider Selling

Key Points

• Freshworks shares fell 4.7% to about $12.74 after Chief Accounting Officer Philippa Lawrence sold 52,767 shares worth approximately $699,000. The transaction was conducted under a Rule 10b5-1 plan to cover tax obligations from vested equity awards.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $14.17; several firms recently raised their targets.
• Freshworks exceeded quarterly expectations, reporting $0.17 in adjusted EPS versus a $0.13 estimate and $237.38 million in revenue, up 16% year over year. Institutional investors own approximately 75.6% of the company’s shares.

Freshworks Inc. (NASDAQ:FRSH - Get Free Report) shares were down 4.7% on Friday following insider selling activity. The company traded as low as $12.61 and last traded at $12.7350. Approximately 1,470,499 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 10,648,855 shares. The stock had previously closed at $13.36.

Specifically, CAO Philippa Lawrence sold 52,767 shares of the stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $13.25, for a total value of $699,162.75. Following the completion of the transaction, 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on FRSH. Weiss Ratings upgraded Freshworks from a "sell (d)" rating to a "hold (c-)" rating in a report on Tuesday, August 18th. Wall Street Zen upgraded shares of Freshworks from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Cantor Fitzgerald increased their target price on shares of Freshworks from $12.00 to $15.00 and gave the company an "overweight" rating in a research note on Wednesday, August 5th. UBS Group raised their target price on shares of Freshworks from $11.00 to $14.00 and gave the stock a "buy" rating in a report on Wednesday, August 5th. Finally, Robert W. Baird set a $13.00 price target on shares of Freshworks in a report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $14.17.

Freshworks Price Performance

The firm has a fifty day moving average of $11.58 and a two-hundred day moving average of $9.59. The stock has a market capitalization of $3.33 billion, a P/E ratio of 19.91, a P/E/G ratio of 10.99 and a beta of 0.89.

Freshworks (NASDAQ:FRSH - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $0.17 EPS for the quarter, beating 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 business had revenue of $237.38 million during the quarter, compared to analyst estimates of $233.62 million. During the same quarter in the previous year, the business posted $0.18 EPS. The company's quarterly revenue was up 16.0% compared to the same quarter last year. 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 forecast that Freshworks Inc. will post 0.04 EPS for the current fiscal year.

Institutional Trading of Freshworks

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Summit Securities Group LLC purchased a new stake in shares of Freshworks during the 4th quarter worth $26,000. IFP Advisors Inc raised its holdings in Freshworks by 954.9% in the fourth quarter. IFP Advisors Inc now owns 2,152 shares of the company's stock worth $26,000 after purchasing an additional 1,948 shares in the last quarter. Nykredit A S bought a new position in Freshworks in the second quarter worth about $28,000. Cullen Frost Bankers Inc. purchased a new stake in shares of Freshworks during the fourth quarter valued at about $36,000. Finally, Allworth Financial LP lifted its position in shares of Freshworks by 479.9% during the fourth quarter. Allworth Financial LP now owns 3,201 shares of the company's stock valued at $39,000 after buying an additional 2,649 shares during the last quarter. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source