Wall Street Zen Upgrades Freshworks (NASDAQ:FRSH) to Buy

Freshworks (NASDAQ:FRSH) was upgraded by investment analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Monday.

A number of other brokerages have also recently issued reports on FRSH. Canaccord Genuity Group set a $14.00 target price on Freshworks in a report on Wednesday, February 11th. Zacks Research downgraded shares of Freshworks from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. Jefferies Financial Group lowered shares of Freshworks from a “buy” rating to a “hold” rating and dropped their price objective for the company from $20.00 to $8.00 in a research note on Monday, February 23rd. Cantor Fitzgerald reduced their price objective on shares of Freshworks from $15.00 to $12.00 and set an “overweight” rating for the company in a report on Wednesday, February 11th. Finally, Robert W. Baird set a $10.00 target price on shares of Freshworks in a research report on Wednesday, February 11th. Six equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Freshworks currently has an average rating of “Hold” and a consensus price target of $12.92.

Freshworks Stock Performance

FRSH stock opened at $8.32 on Monday. The stock’s 50 day simple moving average is $8.41 and its 200 day simple moving average is $10.65. Freshworks has a fifty-two week low of $6.79 and a fifty-two week high of $16.14. The company has a market cap of $2.36 billion, a P/E ratio of 13.00 and a beta of 0.87.

Freshworks (NASDAQ:FRSH) last announced its quarterly earnings results on Tuesday, February 10th. The company reported $0.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.03. Freshworks had a return on equity of 4.69% and a net margin of 21.90%.The business had revenue of $222.74 million for the quarter, compared to analyst estimates of $218.76 million. During the same quarter in the prior year, the company earned $0.14 earnings per share. The company’s quarterly revenue was up 14.5% on a year-over-year basis. Freshworks has set its Q1 2026 guidance at 0.100-0.120 EPS and its FY 2026 guidance at 0.550-0.570 EPS. Equities analysts predict that Freshworks will post -0.19 earnings per share for the current year.

Insiders Place Their Bets

In other Freshworks news, insider Mika Yamamoto sold 32,577 shares of the company’s stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $8.45, for a total value of $275,275.65. Following the completion of the transaction, 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 11.17% of the company’s stock.

Institutional Trading of Freshworks

Hedge funds have recently added to or reduced their stakes in the stock. IFP Advisors Inc boosted its stake in Freshworks by 954.9% in the fourth quarter. IFP Advisors Inc now owns 2,152 shares of the company’s stock valued at $26,000 after acquiring an additional 1,948 shares during the last quarter. Summit Securities Group LLC purchased a new position in Freshworks in the fourth quarter valued at approximately $26,000. Meeder Asset Management Inc. bought a new position in Freshworks during the third quarter valued at $27,000. Rothschild Investment LLC increased its position in Freshworks by 560.0% in the third quarter. Rothschild Investment LLC now owns 2,277 shares of the company’s stock worth $27,000 after buying an additional 1,932 shares during the last quarter. Finally, SBI Securities Co. Ltd. raised its stake in shares of Freshworks by 136.2% in the third quarter. SBI Securities Co. Ltd. now owns 2,745 shares of the company’s stock valued at $32,000 after buying an additional 1,583 shares during the period. Institutional investors 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.