Divergent Investor Moves Signal Uncertainty for Freshworks Stock

The investment landscape surrounding Freshworks Inc. currently presents a study in contrasts. While a major sovereign wealth fund has established a new, significant stake, corporate insiders and another fund have been reducing their holdings. This clash of institutional accumulation and insider distribution creates a complex picture for market participants evaluating the software company's trajectory.

Freshworks reported third-quarter 2025 revenue of $215.1 million, representing a 15% year-over-year increase. Perhaps more notably, the company made substantial progress toward profitability, significantly narrowing its GAAP operating loss to $7.5 million from a loss of $38.9 million in the prior-year period. This improvement in reducing losses is a key factor likely attracting institutional attention.

The broader market context also plays a role. A recent surge in merger and acquisition activity within the software sector, including a major deal in the data space, has generally renewed investor interest in SaaS (Software-as-a-Service) equities. Freshworks operates within this dynamic environment.

Conflicting Capital Flows: Accumulation Meets Distribution

On one side, Norges Bank Investment Management, Norway’s central bank fund, has built a new position in Freshworks, acquiring 1,684,318 shares. This stake equates to approximately 0.58% of the company. In a separate move, Quantbot Technologies LP also reported initiating a new position, purchasing 83,489 shares. Such substantial purchases by large, often long-term oriented institutions are typically viewed as a confidence signal.

These inflows stand in direct opposition to recent selling activity. The company's Chief Marketing Officer, Mika Yamamoto, sold 15,012 shares on December 5. This transaction was executed under a pre-arranged Rule 10b5-1 trading plan established on September 17, 2024. Following this sale, Yamamoto retains 490,350 shares, representing a decrease in her holdings of nearly 3%. Additionally, Whetstone Capital Advisors liquidated its entire position of 492,234 shares in mid-November.

Should investors sell immediately? Or is it worth buying Freshworks?

Technical Positioning and Analyst Sentiment

The stock's price action, currently near €11.30, reflects this ambiguous backdrop. This level sits roughly 40% below the 52-week high. From a technical analysis perspective, the Relative Strength Index (RSI) reading of 72.2 indicates pronounced short-term momentum. However, the share price is trading just below its 200-day moving average of €11.85, while remaining above its 50-day average of €10.03. This positioning near a key long-term trend indicator makes the near-term technical outlook particularly sensitive.

Analyst consensus currently averages a "Hold" recommendation. Available data indicates the average price target remains significantly above the current trading level.

Key Factors for the Path Ahead

Moving forward, two measurable aspects will be crucial for short-term direction:
- Whether the share price can sustain support around the 200-day moving average (€11.85), which would keep upward potential intact.
- If it fails to stabilize above this zone, the equity could face renewed downward pressure.

Ultimately, the sustainability of institutional demand will be tested. Investors are advised to monitor upcoming quarterly financial results and subsequent institutional 13F filing disclosures. These events will provide clearer evidence on whether the path to improved profitability continues to attract large-scale buyers or if the current mixed signals will define the near-term trend.