Freshworks (NASDAQ:FRSH) Hits New 1-Year High – Still a Buy?

Freshworks Inc. (NASDAQ:FRSH) hit a new 52-week high during mid-day trading on Tuesday. The company traded as high as $14.37 and last traded at $13.9760, with a volume of 1798559 shares changing hands. The stock had previously closed at $13.22.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on FRSH. Weiss Ratings upgraded Freshworks from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, September 29th. Zacks Research downgraded Freshworks from a “strong-buy” rating to a “hold” rating in a report on Friday, July 10th. Wall Street Zen upgraded Freshworks from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Guggenheim began coverage on Freshworks in a research note on Wednesday, July 22nd. They set a “buy” rating and a $25.00 target price on the stock. Finally, 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. One investment 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 company. According to MarketBeat.com, Freshworks has an average rating of “Moderate Buy” and an average price target of $14.46.

Freshworks Stock Performance

The stock has a market capitalization of $3.55 billion, a price-to-earnings ratio of 21.25, a PEG ratio of 9.17 and a beta of 0.90. The company has a 50 day moving average of $12.61 and a 200 day moving average of $10.40.

Freshworks (NASDAQ:FRSH) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $0.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.13 by $0.04. The company had revenue of $237.38 million for the quarter, compared to analyst estimates of $233.62 million. Freshworks had a return on equity of 5.52% and a net margin of 20.49%.Freshworks’s revenue for the quarter was up 16.0% compared to the same quarter last year. During the same quarter last year, the company earned $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. As a group, research analysts expect that Freshworks Inc. will post 0.05 EPS for the current fiscal year.

Insider Buying and Selling at Freshworks

In related news, CAO Philippa Lawrence sold 3,492 shares of the firm’s stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $12.98, for a total value of $45,326.16. Following the sale, the chief accounting officer owned 379,639 shares of the company’s stock, valued at $4,927,714.22. This trade represents a 0.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available 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. Insiders own 8.54% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in FRSH. Wellington Management Group LLP increased its position in shares of Freshworks by 9.7% in the 2nd quarter. Wellington Management Group LLP now owns 4,000,543 shares of the company’s stock valued at $40,485,000 after purchasing an additional 353,714 shares during the last quarter. Renaissance Technologies LLC lifted its position in shares of Freshworks by 79.1% during the 1st quarter. Renaissance Technologies LLC now owns 4,576,000 shares of the company’s stock worth $36,745,000 after purchasing an additional 2,021,412 shares during the last quarter. Norges Bank purchased a new stake in shares of Freshworks during the 4th quarter worth $31,873,000. Bank of America Corp DE grew its stake in shares of Freshworks by 1.4% during the first quarter. Bank of America Corp DE now owns 2,128,268 shares of the company’s stock worth $17,090,000 after purchasing an additional 30,395 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund grew its stake in shares of Freshworks by 403.4% during 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. Institutional investors and hedge funds own 75.58% of the company’s stock.

About Freshworks

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.