Citizens Jmp Has Lowered Expectations for Freshworks (NASDAQ:FRSH) Stock Price

Freshworks (NASDAQ:FRSH) had its target price reduced by analysts at Citizens Jmp from $27.00 to $16.00 in a report issued on Wednesday,Benzinga reports. The firm presently has a “market outperform” rating on the stock. Citizens Jmp’s price objective would indicate a potential upside of 120.57% from the stock’s previous close.

FRSH has been the subject of a number of other reports. BTIG Research assumed coverage on Freshworks in a research report on Tuesday, December 16th. They issued a “neutral” rating for the company. Needham & Company LLC reissued a “buy” rating and issued a $15.00 price target on shares of Freshworks in a research note on Wednesday. Wall Street Zen downgraded Freshworks from a “strong-buy” rating to a “buy” rating in a report on Saturday, December 20th. Oppenheimer set a $15.00 price target on Freshworks in a research note on Wednesday. Finally, Canaccord Genuity Group set a $14.00 target price on shares of Freshworks in a research note on Wednesday. Eight research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $15.71.

Freshworks Price Performance

Shares of FRSH stock traded down $1.48 during trading hours on Wednesday, hitting $7.25. 6,711,618 shares of the company’s stock were exchanged, compared to its average volume of 5,146,203. The stock’s 50-day moving average is $11.67 and its 200-day moving average is $12.06. Freshworks has a 52 week low of $7.00 and a 52 week high of $18.77. The stock has a market cap of $2.05 billion, a price-to-earnings ratio of -72.61 and a beta of 0.89.

Freshworks (NASDAQ:FRSH) last posted its quarterly earnings data on Tuesday, February 10th. The company reported $0.14 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.03. Freshworks had a negative net margin of 3.65% and a negative return on equity of 0.37%. The firm had revenue of $222.74 million during the quarter, compared to analysts’ expectations of $218.76 million. During the same quarter last year, the company posted $0.14 EPS. The company’s quarterly revenue was up 14.5% compared to the same quarter last year. 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 research analysts forecast that Freshworks will post -0.19 earnings per share for the current fiscal year.

Insider Buying and Selling at Freshworks

In related news, CAO Philippa Lawrence sold 5,846 shares of Freshworks stock in a transaction dated Tuesday, December 2nd. The stock was sold at an average price of $12.06, for a total value of $70,502.76. Following the sale, the chief accounting officer owned 392,711 shares of the company’s stock, valued at approximately $4,736,094.66. The trade was a 1.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Mika Yamamoto sold 15,012 shares of the stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $13.00, for a total value of $195,156.00. Following the transaction, the insider directly owned 490,350 shares of the company’s stock, valued at $6,374,550. This trade represents a 2.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 22,267 shares of company stock valued at $282,301 in the last 90 days. 11.17% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Freshworks

Several large investors have recently made changes to their positions in FRSH. BNP PARIBAS ASSET MANAGEMENT Holding S.A. acquired a new position in Freshworks during the second quarter worth $25,000. IFP Advisors Inc grew its position in shares of Freshworks by 954.9% in the 4th 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 period. Rothschild Investment LLC grew its position in shares of Freshworks by 560.0% in the 3rd quarter. Rothschild Investment LLC now owns 2,277 shares of the company’s stock valued at $27,000 after acquiring an additional 1,932 shares during the period. Meeder Asset Management Inc. acquired a new position in shares of Freshworks during the 3rd quarter worth about $27,000. Finally, SBI Securities Co. Ltd. lifted its stake in Freshworks by 136.2% in the 3rd quarter. SBI Securities Co. Ltd. now owns 2,745 shares of the company’s stock valued at $32,000 after purchasing an additional 1,583 shares during the last quarter. Institutional investors and hedge funds own 75.58% of the company’s stock.

Key Headlines Impacting Freshworks

Here are the key news stories impacting Freshworks this week:

• Positive Sentiment: Q4 results beat estimates — Freshworks reported $222.7M in revenue (≈14% y/y) and $0.14 non‑GAAP EPS, exceeded the high end of revenue and non‑GAAP operating margin guidance, and showed strong cash flow and ARR momentum. Freshworks Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: AI-led growth & long‑term ARR target — Management is pushing AI and its EX/CX platform as the growth engine and is targeting $1.3B ARR by 2028, which supports upside if adoption continues. Freshworks targets $1.3B ARR by 2028
• Positive Sentiment: Analyst support remains — Needham reaffirmed its “buy” rating with a $15 PT, implying material upside from current levels and signaling some analysts still view the company as a recovery/AI play. Needham reaffirms buy (Benzinga)
• Neutral Sentiment: Guidance is mixed — Freshworks guided FY‑2026 revenue to $952–$960M (slightly above consensus) and Q1 revenue above estimates, which is constructive for growth, but the company set FY EPS at $0.55–$0.57 (below the street). The revenue beat vs. the EPS shortfall creates the mixed market reaction. Freshworks Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Operational positives: product launches and the FireHydrant acquisition bolster ITSM/service offerings and could help cross‑sell. These are supportive but longer‑dated catalysts. Freshworks press release (GlobeNewswire)
• Negative Sentiment: Analyst pullback on valuation — Cantor Fitzgerald cut its price target from $15 to $12 (still “overweight”), signaling trimmed near‑term expectations and adding downward pressure. Cantor Fitzgerald lowers PT to $12 (Benzinga)
• Negative Sentiment: Market reaction to guidance — Some coverage notes shares fell after the guidance/earnings update because FY EPS fell short of consensus despite the revenue beat; investors appear focused on profitability cadence and sustainability of AI gains. Freshworks shares drop as earnings guidance disappoints investors (Investing.com)
• Negative Sentiment: One‑time accounting items cloud GAAP results — Q4 GAAP net income was boosted by a large tax benefit (valuation allowance release), so investors should focus on non‑GAAP metrics and recurring profitability. Freshworks Q4 release (GlobeNewswire)

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.