Freshworks (NASDAQ:FRSH) Stock Price Down 9.6% – Time to Sell?

Freshworks Inc. (NASDAQ:FRSH) traded down 9.6% during trading on Thursday . The company traded as low as $8.08 and last traded at $8.0550. 2,012,445 shares changed hands during mid-day trading, a decline of 71% from the average session volume of 6,875,614 shares. The stock had previously closed at $8.91.

Wall Street Analyst Weigh In

A number of research analysts have commented on the stock. Citigroup restated an “outperform” rating on shares of Freshworks in a research note on Wednesday, February 11th. Robert W. Baird set a $10.00 price objective on shares of Freshworks in a report on Wednesday, February 11th. UBS Group set a $11.00 price target on shares of Freshworks in a report on Wednesday, February 11th. Canaccord Genuity Group set a $14.00 price target on shares of Freshworks in a report on Wednesday, February 11th. Finally, Piper Sandler cut their price objective on shares of Freshworks from $12.00 to $10.00 and set a “neutral” rating for the company in a research report on Wednesday, February 11th. Six equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $12.92.

Freshworks Price Performance

The firm’s 50-day moving average is $7.99 and its 200 day moving average is $10.29. The stock has a market cap of $2.33 billion, a price-to-earnings ratio of 12.78 and a beta of 0.87.

Freshworks (NASDAQ:FRSH) last released its quarterly earnings data on Tuesday, February 10th. The company reported $0.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.03. The company had revenue of $222.74 million during the quarter, compared to analyst estimates of $218.76 million. Freshworks had a net margin of 21.90% and a return on equity of 4.69%. The business’s quarterly revenue was up 14.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.14 earnings per share. Freshworks has set its Q1 2026 guidance at 0.100-0.120 EPS and its FY 2026 guidance at 0.550-0.570 EPS. On average, sell-side analysts forecast that Freshworks Inc. will post -0.1 EPS for the current year.

Insider Buying and Selling

In other Freshworks news, insider Mika Yamamoto sold 32,577 shares of the stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $8.45, for a total transaction of $275,275.65. Following the transaction, the insider directly owned 1,127,723 shares in the company, valued at $9,529,259.35. This represents a 2.81% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 11.17% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. IFP Advisors Inc boosted its stake in Freshworks by 954.9% during 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 last quarter. Summit Securities Group LLC bought a new position in Freshworks during the 4th quarter valued at $26,000. Meeder Asset Management Inc. bought a new position in shares of Freshworks in the 3rd quarter worth about $27,000. Rothschild Investment LLC lifted 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 worth $27,000 after buying an additional 1,932 shares during the last quarter. Finally, SBI Securities Co. Ltd. lifted its position in shares of Freshworks by 136.2% in the 3rd quarter. SBI Securities Co. Ltd. now owns 2,745 shares of the company’s stock worth $32,000 after buying an additional 1,583 shares during the last quarter. 75.58% of the stock is currently owned by institutional investors.

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.