Freshworks (NASDAQ:FRSH) Shares Gap Down – Here’s What Happened

Freshworks Inc. (NASDAQ:FRSH) gapped down before the market opened on Thursday . The stock had previously closed at $10.17, but opened at $9.75. Freshworks shares last traded at $10.1750, with a volume of 566,232 shares.

Wall Street Analysts Forecast Growth

FRSH has been the topic of a number of analyst reports. Oppenheimer lowered shares of Freshworks from an “outperform” rating to a “market perform” rating in a research report on Thursday, March 19th. Zacks Research upgraded shares of Freshworks from a “hold” rating to a “strong-buy” rating in a research report on Thursday, May 7th. Citigroup restated a “market outperform” rating on shares of Freshworks in a research note on Tuesday, June 2nd. Weiss Ratings downgraded shares of Freshworks from a “sell (d+)” rating to a “sell (d)” rating in a report on Thursday, May 7th. Finally, Wall Street Zen lowered shares of Freshworks from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Freshworks currently has an average rating of “Hold” and an average target price of $12.18.

Freshworks Stock Up 0.9%

The business’s fifty day moving average is $9.31 and its 200 day moving average is $9.35. The stock has a market cap of $2.84 billion, a PE ratio of 16.52 and a beta of 0.88.

Freshworks (NASDAQ:FRSH) last issued its earnings results on Tuesday, May 5th. The company reported $0.11 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.11. Freshworks had a net margin of 20.69% and a return on equity of 4.27%. The company had revenue of $228.63 million during the quarter, compared to analysts’ expectations of $223.63 million. During the same period last year, the company posted $0.18 earnings per share. The firm’s quarterly revenue was up 16.5% compared to the same quarter last year. Freshworks has set its FY 2026 guidance at 0.610-0.630 EPS and its Q2 2026 guidance at 0.130-0.130 EPS. As a group, analysts predict that Freshworks Inc. will post -0.02 EPS for the current year.

Insider Activity at Freshworks

In other Freshworks news, Director Barry L. Padgett sold 6,618 shares of the company’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $10.49, for a total value of $69,422.82. Following the sale, the director owned 47,270 shares of the company’s stock, valued at approximately $495,862.30. This represents a 12.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Philippa Lawrence sold 10,530 shares of the firm’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $9.18, for a total value of $96,665.40. Following the completion of the transaction, the chief accounting officer owned 465,823 shares of the company’s stock, valued at approximately $4,276,255.14. This represents a 2.21% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 27,236 shares of company stock valued at $270,331 in the last ninety days. Corporate insiders own 8.54% of the company’s stock.

Institutional Investors Weigh In On Freshworks

A number of large investors have recently added to or reduced their stakes in FRSH. IFP Advisors Inc lifted its holdings in shares of Freshworks by 954.9% in the fourth quarter. IFP Advisors Inc now owns 2,152 shares of the company’s stock valued at $26,000 after purchasing an additional 1,948 shares in the last quarter. Summit Securities Group LLC purchased a new position in shares of Freshworks during the 4th quarter worth approximately $26,000. Cullen Frost Bankers Inc. purchased a new position in shares of Freshworks during the 4th quarter worth approximately $36,000. Allworth Financial LP increased its stake in shares of Freshworks by 479.9% during the 4th quarter. Allworth Financial LP now owns 3,201 shares of the company’s stock worth $39,000 after purchasing an additional 2,649 shares in the last quarter. Finally, Meeder Asset Management Inc. raised its position in shares of Freshworks by 164.0% during the 1st quarter. Meeder Asset Management Inc. now owns 6,156 shares of the company’s stock worth $49,000 after purchasing an additional 3,824 shares during the last quarter. 75.58% of the stock is 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.