Freshworks (NASDAQ:FRSH) Stock Rating Cut to Peer Perform at Wolfe Research

Freshworks (NASDAQ:FRSH) was downgraded by Wolfe Research from an “outperform” rating to a “peer perform” rating in a research note issued to investors on Wednesday, Marketbeat.com reports.

Other equities analysts have also issued research reports about the stock. Wall Street Zen upgraded shares of Freshworks from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Guggenheim assumed coverage on Freshworks in a report on Wednesday, July 22nd. They set a “buy” rating and a $25.00 price target for the company. UBS Group lifted their price objective on Freshworks from $11.00 to $14.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Weiss Ratings raised Freshworks from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, September 29th. Finally, Wells Fargo & Company upped their target price on Freshworks from $10.00 to $15.00 and gave the company an “equal weight” rating in a research report on Wednesday, October 28th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $15.46.

Freshworks Stock Down 6.8%

Freshworks stock traded down $0.97 during mid-day trading on Wednesday, hitting $13.18. 5,042,691 shares of the stock were exchanged, compared to its average volume of 9,732,667. Freshworks has a 12 month low of $6.79 and a 12 month high of $15.51. The firm’s fifty day simple moving average is $13.47 and its two-hundred day simple moving average is $10.48. The stock has a market capitalization of $3.44 billion, a price-to-earnings ratio of 20.63, a PEG ratio of 9.47 and a beta of 0.80.

Freshworks (NASDAQ:FRSH) last posted its quarterly earnings data on Tuesday, November 3rd. The company reported $0.22 EPS for the quarter, beating analysts’ consensus estimates of $0.18 by $0.04. Freshworks had a net margin of 20.49% and a return on equity of 5.52%. The company had revenue of $245.43 million for the quarter, compared to analyst estimates of $245.06 million. During the same period in the prior year, the firm posted $0.16 EPS. The company’s quarterly revenue was up 14.1% on a year-over-year basis. As a group, analysts forecast that Freshworks will post 0.05 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Freshworks news, CAO Philippa Lawrence sold 3,492 shares of the firm’s stock in a transaction on Monday, October 5th. The shares were 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 directly owned 379,639 shares in the company, valued at approximately $4,927,714.22. This trade represents a 0.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed 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. Insiders own 8.54% of the company’s stock.

Hedge Funds Weigh In On Freshworks

A number of institutional investors and hedge funds have recently made changes to their positions in FRSH. Nykredit A S acquired a new stake in shares of Freshworks in the 2nd quarter valued at about $28,000. Provenance Wealth Advisors LLC acquired a new position in Freshworks during the 3rd quarter worth approximately $28,000. Root Financial Partners LLC bought a new position in Freshworks in the third quarter worth approximately $29,000. Meeder Asset Management Inc. boosted its holdings in Freshworks by 164.0% in the first quarter. Meeder Asset Management Inc. now owns 6,156 shares of the company’s stock worth $49,000 after acquiring an additional 3,824 shares in the last quarter. Finally, Summit Securities Group LLC grew its stake in Freshworks by 186.3% in the first quarter. Summit Securities Group LLC now owns 6,043 shares of the company’s stock valued at $49,000 after acquiring an additional 3,932 shares during the period. Institutional investors own 75.58% of the company’s stock.

Key Stories Impacting Freshworks

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Analysts raised their targets. Cantor Fitzgerald lifted its target to $20 and kept an Overweight rating; Piper Sandler raised its target to $15 while maintaining Neutral. Cantor Fitzgerald ratings Piper Sandler ratings
• Positive Sentiment: Profitability and cash generation stood out. Freshworks reported $0.22 in quarterly earnings per share, topping the $0.18 consensus, and record adjusted free cash flow of $73.9 million, up 29% year over year. It also reported GAAP net income of $18.3 million and its ninth consecutive quarter meeting the Rule of 40. Freshworks Q3 results
• Positive Sentiment: Management gave full-year targets. Freshworks expects 2026 revenue of $965 million–$966 million and is targeting more than $0.94 in adjusted free cash flow per share. 2026 outlook
• Neutral Sentiment: Revenue was $245.4 million, up 14% year over year and just above estimates of $245.06 million. The modest beat may have offered limited upside surprise. Q3 earnings and revenue
• Negative Sentiment: Shares fell after the report. Despite the earnings beat, coverage noted that the stock dropped, suggesting results or the outlook may not have cleared investor expectations. Freshworks shares after Q3 results

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.