Five9 (NASDAQ:FIVN) Stock Price Target Raised at KeyCorp

Key Points

• KeyCorp raised its Five9 price target from $32 to $34 and maintained an “overweight” rating; at the report’s quoted share price, the target implied 0.41% downside. Analysts’ consensus rating was “Moderate Buy,” with an average target of $35.
• Five9’s third-quarter revenue rose 13% year over year to $323.3 million, while adjusted earnings of $0.82 per share topped estimates. However, GAAP gross margin declined to 53.4% from 55.0% a year earlier.
• Five9 plans to acquire Level AI for $325 million in cash to expand its AI-powered customer-service tools; the deal offers potential platform benefits but also carries integration and execution risks.

Five9 (NASDAQ:FIVN - Get Free Report) had its price objective upped by equities research analysts at KeyCorp from $32.00 to $34.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm presently has an "overweight" rating on the software maker's stock. KeyCorp's target price points to a potential downside of 0.41% from the stock's current price.

Several other analysts have also recently issued reports on FIVN. Cantor Fitzgerald increased their price target on shares of Five9 from $34.00 to $40.00 and gave the stock an "overweight" rating in a research report on Monday, September 21st. Piper Sandler upped their target price on shares of Five9 from $24.00 to $30.00 and gave the stock a "neutral" rating in a research note on Friday, August 7th. Royal Bank Of Canada upped their target price on shares of Five9 from $25.00 to $35.00 and gave the stock an "outperform" rating in a research note on Friday, August 7th. UBS Group increased their target price on shares of Five9 from $36.00 to $48.00 and gave the stock a "buy" rating in a report on Friday, October 16th. Finally, Truist Financial raised their price target on shares of Five9 from $35.00 to $40.00 and gave the company a "buy" rating in a research report on Monday, August 31st. Twelve equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $35.00.

Five9 Trading Down 6.1%

FIVN opened at $34.14 on Friday. Five9 has a 52 week low of $13.29 and a 52 week high of $40.00. The business has a fifty day simple moving average of $34.67 and a 200-day simple moving average of $24.43. The firm has a market cap of $2.61 billion, a P/E ratio of 49.48 and a beta of 1.56. The company has a quick ratio of 4.15, a current ratio of 4.15 and a debt-to-equity ratio of 0.94.

Five9 (NASDAQ:FIVN - Get Free Report) last posted its quarterly earnings data on Thursday, November 5th. The software maker reported $0.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.80 by $0.02. Five9 had a return on equity of 12.92% and a net margin of 4.94%. The firm had revenue of $323.30 million for the quarter, compared to the consensus estimate of $319.04 million. During the same quarter in the previous year, the business earned $0.78 EPS. The company's quarterly revenue was up 13.1% compared to the same quarter last year. On average, equities analysts expect that Five9 will post 1.55 earnings per share for the current year.

Insider Activity

In related news, insider Tiffany N. Meriweather sold 13,409 shares of the business's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $33.31, for a total transaction of $446,653.79. Following the completion of the transaction, the insider owned 258,363 shares in the company, valued at approximately $8,606,071.53. The trade was a 4.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. 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. Also, CFO Bryan M. Lee sold 19,308 shares of the stock in a transaction on Friday, September 4th. The shares were sold at an average price of $33.34, for a total value of $643,728.72. Following the completion of the transaction, the chief financial officer directly owned 290,643 shares in the company, valued at $9,690,037.62. This trade represents a 6.23% decrease in their position. The SEC filing for this sale provides additional information. 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 have sold 83,831 shares of company stock worth $2,821,366 over the last three months. Insiders own 1.20% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in FIVN. Anson Funds Management LP raised its position in Five9 by 35.6% in the first quarter. Anson Funds Management LP now owns 2,086,675 shares of the software maker's stock worth $31,655,000 after acquiring an additional 547,304 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in shares of Five9 by 18.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,054,769 shares of the software maker's stock worth $15,998,000 after purchasing an additional 165,623 shares in the last quarter. Glenmede Trust Co. NA boosted its position in shares of Five9 by 35.7% during the 1st quarter. Glenmede Trust Co. NA now owns 577,672 shares of the software maker's stock worth $8,763,000 after purchasing an additional 151,974 shares in the last quarter. S Squared Technology LLC acquired a new position in shares of Five9 during the 2nd quarter worth $10,983,957. Finally, Deutsche Bank AG acquired a new position in shares of Five9 during the 2nd quarter worth $10,432,000. 96.64% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Five9

Here are the key news stories impacting Five9 this week:

• Positive Sentiment: Q3 revenue rose 13% year over year to $323.3 million, topping the $319.0 million consensus estimate. Earnings of $0.82 per share also beat expectations of $0.80 and were up from $0.78 a year earlier. Zacks Q3 results
• Neutral Sentiment: Five9 expects fourth-quarter adjusted EPS of $0.88–$0.92. The articles provided no analyst consensus for this outlook, so it is difficult to assess it against market expectations. Q4 EPS outlook
• Neutral Sentiment: The planned $325 million cash acquisition of Level AI is intended to expand Five9’s AI tools for customer service, including automation and agent support. The deal could strengthen its platform, though the cash outlay and integration bring execution risks. Five9 Level AI acquisition announcement
• Negative Sentiment: Gross margins weakened: GAAP gross margin was 53.4%, down from 55.0% a year earlier. This may temper the positive impact of revenue and earnings growth. Five9 Q3 financial results

Five9 Company Profile

Five9, Inc is a cloud-based software company that provides customer experience and contact center solutions. Its platform enables organizations to manage customer interactions across voice, chat, email, social media and other digital channels without relying on traditional on-premises contact center infrastructure.

The company's Intelligent CX Platform includes tools for inbound and outbound communications, digital engagement, workforce optimization, workflow automation, analytics and reporting.

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