Freshworks (NASDAQ:FRSH) Hits New 1-Year High – Should You Buy?

Freshworks Inc. (NASDAQ:FRSH)’s stock price hit a new 52-week high 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.

Analyst Ratings Changes

Several equities analysts recently weighed in on FRSH shares. Zacks Research cut shares of Freshworks from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 10th. Wall Street Zen upgraded shares of Freshworks from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. KeyCorp initiated coverage on shares of Freshworks in a report on Monday, September 14th. They set an “overweight” rating and a $18.00 price objective for the company. Piper Sandler raised their price objective on Freshworks from $10.00 to $12.00 and gave the company a “neutral” rating in a research report on Wednesday, August 5th. Finally, Guggenheim initiated coverage on Freshworks in a research report on Wednesday, July 22nd. They set a “buy” rating and a $25.00 price objective for the company. One 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 company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $14.46.

Freshworks Stock Down 3.6%

The business’s fifty day moving average is $12.93 and its two-hundred day moving average is $10.67. The stock has a market capitalization of $3.59 billion, a PE ratio of 21.47, a price-to-earnings-growth ratio of 9.50 and a beta of 0.90.

Freshworks (NASDAQ:FRSH) 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. Sell-side analysts expect that Freshworks Inc. will post 0.05 EPS for the current fiscal year.

Insider Activity

In related news, CAO Philippa Lawrence sold 3,492 shares of the stock in a transaction dated 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 transaction, the chief accounting officer owned 379,639 shares of the company’s stock, valued at approximately $4,927,714.22. This trade represents a 0.91% 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. Corporate insiders own 8.54% of the company’s stock.

Institutional Investors Weigh In On Freshworks

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Generation Investment Management LLP purchased a new stake in shares of Freshworks in the second quarter valued at $6,392,000. Assenagon Asset Management S.A. purchased a new position in shares of Freshworks during the 2nd quarter worth about $2,565,000. First Trust Advisors LP grew its holdings in Freshworks by 209.6% during the 1st quarter. First Trust Advisors LP now owns 262,849 shares of the company’s stock valued at $2,111,000 after purchasing an additional 177,963 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund grew its holdings 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 valued at $11,596,000 after purchasing an additional 1,157,277 shares during the last quarter. Finally, Principal Financial Group Inc. raised its position in Freshworks by 80.7% in the 1st quarter. Principal Financial Group Inc. now owns 765,475 shares of the company’s stock worth $6,147,000 after purchasing an additional 341,947 shares during the period. 75.58% of the stock is currently owned by hedge funds and other institutional investors.

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.