Freshworks (NASDAQ:FRSH) Shares Gap Down – What’s Next?

Shares of Freshworks Inc. (NASDAQ:FRSH) gapped down before the market opened on Monday . The stock had previously closed at $7.46, but opened at $7.14. Freshworks shares last traded at $6.9420, with a volume of 746,338 shares.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on FRSH. Zacks Research cut shares of Freshworks from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 12th. Robert W. Baird set a $10.00 target price on Freshworks in a report on Wednesday, February 11th. Piper Sandler lowered their price target on Freshworks from $12.00 to $10.00 and set a “neutral” rating for the company in a report on Wednesday, February 11th. Citizens Jmp dropped their price target on Freshworks from $27.00 to $16.00 and set a “market outperform” rating on the stock in a research report on Wednesday, February 11th. Finally, Wells Fargo & Company decreased their price objective on shares of Freshworks from $13.00 to $10.00 and set an “equal weight” rating for the company in a report on Wednesday, February 11th. Seven investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $12.92.

Freshworks Stock Performance

The firm has a market cap of $2.05 billion, a P/E ratio of 11.38 and a beta of 0.89. The firm has a fifty day moving average of $10.56 and a 200-day moving average of $11.64.

Freshworks (NASDAQ:FRSH) last issued its earnings results on Tuesday, February 10th. The company reported $0.14 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.03. Freshworks had a return on equity of 4.77% and a net margin of 21.90%.The firm had revenue of $222.74 million for the quarter, compared to analyst estimates of $218.76 million. During the same period last year, the company earned $0.14 earnings per share. The firm’s revenue for the quarter 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 research analysts expect that Freshworks Inc. will post -0.19 earnings per share for the current year.

Insider Activity

In other Freshworks news, CAO Philippa Lawrence sold 5,846 shares of the firm’s stock in a transaction that occurred on Tuesday, December 2nd. The shares were 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 in the company, valued at approximately $4,736,094.66. This trade represents a 1.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Mika Yamamoto sold 15,012 shares of Freshworks 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 sale, the insider directly owned 490,350 shares in the company, valued at approximately $6,374,550. This trade represents a 2.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 21,623 shares of company stock worth $274,540. 11.17% of the stock is currently owned by insiders.

Institutional Trading of Freshworks

Several large investors have recently added to or reduced their stakes in FRSH. Envestnet Asset Management Inc. increased its stake in Freshworks by 34.1% during the 2nd quarter. Envestnet Asset Management Inc. now owns 110,654 shares of the company’s stock valued at $1,650,000 after buying an additional 28,152 shares during the period. Geode Capital Management LLC increased its stake in shares of Freshworks by 1.6% during the second quarter. Geode Capital Management LLC now owns 4,856,163 shares of the company’s stock valued at $72,414,000 after acquiring an additional 75,688 shares during the period. Nordea Investment Management AB acquired a new position in shares of Freshworks during the third quarter valued at approximately $5,083,000. Pier 88 Investment Partners LLC raised its holdings in Freshworks by 68.6% during the second quarter. Pier 88 Investment Partners LLC now owns 80,680 shares of the company’s stock worth $1,203,000 after purchasing an additional 32,830 shares in the last quarter. Finally, Edgestream Partners L.P. lifted its position in Freshworks by 744.6% in the second quarter. Edgestream Partners L.P. now owns 367,873 shares of the company’s stock worth $5,485,000 after purchasing an additional 324,319 shares during the period. 75.58% of the stock is currently owned by institutional investors and hedge funds.

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.