Freshworks (NASDAQ:FRSH) Reaches New 52-Week High – Here’s Why

Freshworks Inc. (NASDAQ:FRSH) reached a new 52-week high during mid-day trading on Thursday. The stock traded as high as $14.42 and last traded at $14.2680, with a volume of 844,329 shares. The stock had previously closed at $13.69.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on FRSH. Cantor Fitzgerald reiterated an “overweight” rating on shares of Freshworks in a research note on Tuesday. Guggenheim assumed coverage on Freshworks in a research note on Wednesday, July 22nd. They set a “buy” rating and a $25.00 target price for the company. Piper Sandler raised their target price on Freshworks from $10.00 to $12.00 and gave the company a “neutral” rating in a report on Wednesday, August 5th. Zacks Research downgraded Freshworks from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 10th. Finally, KeyCorp started coverage on Freshworks in a research report on Monday, September 14th. They issued an “overweight” rating and a $18.00 price target on the stock. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $14.46.

Freshworks Trading Up 5.3%

The stock has a market capitalization of $3.76 billion, a P/E ratio of 22.46, a P/E/G ratio of 9.27 and a beta of 0.90. The business’s fifty day simple moving average is $12.83 and its two-hundred day simple moving average is $10.61.

Freshworks (NASDAQ:FRSH) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.13 by $0.04. The company had revenue of $237.38 million for the quarter, compared to the consensus estimate of $233.62 million. Freshworks had a net margin of 20.49% and a return on equity of 5.52%. The business’s revenue was up 16.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.18 EPS. Freshworks has set its FY 2026 guidance at 0.660-0.680 EPS and its Q3 2026 guidance at 0.180-0.180 EPS. On average, equities research analysts anticipate that Freshworks Inc. will post 0.05 earnings per share for the current year.

Insiders Place Their Bets

In related news, CAO Philippa Lawrence sold 3,492 shares of the business’s stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $12.98, for a total transaction of $45,326.16. Following the transaction, the chief accounting officer directly owned 379,639 shares in the company, valued at $4,927,714.22. The trade was a 0.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 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. 8.54% of the stock is currently owned by company insiders.

Institutional Trading of Freshworks

Several institutional investors have recently modified their holdings of the company. Generation Investment Management LLP acquired a new position in shares of Freshworks in the 2nd quarter valued at $6,392,000. Assenagon Asset Management S.A. bought a new stake in Freshworks in the second quarter valued at about $2,565,000. First Trust Advisors LP increased its stake in Freshworks by 209.6% in the first quarter. First Trust Advisors LP now owns 262,849 shares of the company’s stock valued at $2,111,000 after acquiring an additional 177,963 shares during the period. Healthcare of Ontario Pension Plan Trust Fund raised its position in Freshworks by 403.4% in the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,444,124 shares of the company’s stock worth $11,596,000 after purchasing an additional 1,157,277 shares in the last quarter. Finally, Principal Financial Group Inc. raised its position in Freshworks by 80.7% in the first 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 in the last quarter. Institutional investors and hedge funds own 75.58% of the company’s stock.

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.