Five9 (NASDAQ:FIVN) Stock Rating Cut to In-Line at Evercore

Key Points

• Evercore downgraded Five9 from “outperform” to “in-line” and set a $24 price target, implying 29.7% downside from the previous close.
• Analyst opinion remains broadly positive: Five9 has a “Moderate Buy” consensus rating and an average price target of $35.06.
• Five9’s latest reported quarter beat expectations, with revenue up 13% year over year to $323.3 million and earnings of $0.82 per share versus the $0.80 consensus.

Five9 (NASDAQ:FIVN - Get Free Report) was downgraded by stock analysts at Evercore from an "outperform" rating to an "in-line" rating in a research note issued on Friday, Marketbeat reports. They presently have a $24.00 target price on the software maker's stock. Evercore's price objective suggests a potential downside of 29.70% from the company's previous close.

Several other equities analysts have also commented on FIVN. FBN Securities started coverage on Five9 in a research report on Wednesday, September 16th. They set an "outperform" rating and a $40.00 price target on the stock. Barclays increased their price objective on shares of Five9 from $34.00 to $40.00 and gave the company an "overweight" rating in a research report on Tuesday, October 13th. Truist Financial lifted their price objective on shares of Five9 from $35.00 to $40.00 and gave the company a "buy" rating in a research note on Monday, August 31st. Cantor Fitzgerald boosted their target price 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. Finally, Piper Sandler boosted their target price on shares of Five9 from $24.00 to $30.00 and gave the stock a "neutral" rating in a research report on Friday, August 7th. Eleven equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $35.06.

Five9 Stock Performance

Shares of FIVN stock opened at $34.14 on Friday. Five9 has a one year low of $13.29 and a one year high of $40.00. The company has a debt-to-equity ratio of 0.94, a quick ratio of 4.15 and a current ratio of 4.15. The company has a 50 day moving average price of $34.67 and a 200 day moving average price of $24.43. The firm has a market capitalization of $2.61 billion, a price-to-earnings ratio of 49.48 and a beta of 1.56.

Five9 (NASDAQ:FIVN - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The software maker reported $0.82 earnings per share for the quarter, beating analysts' consensus estimates of $0.80 by $0.02. Five9 had a net margin of 4.94% and a return on equity of 12.92%. The company had revenue of $323.30 million for the quarter, compared to analyst estimates of $319.04 million. During the same quarter last year, the business earned $0.78 EPS. Five9's revenue for the quarter was up 13.1% on a year-over-year basis. Sell-side analysts anticipate that Five9 will post 1.55 EPS for the current year.

Insider Activity at Five9

In other news, insider Tiffany N. Meriweather sold 5,114 shares of the firm's stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $31.55, for a total value of $161,346.70. Following the transaction, the insider directly owned 253,249 shares in the company, valued at approximately $7,990,005.95. This trade represents a 1.98% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed 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 1,310 shares of Five9 stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $32.60, for a total transaction of $42,706.00. Following the completion of the transaction, the chief financial officer directly owned 289,333 shares of the company's stock, valued at $9,432,255.80. This trade represents a 0.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 sold a total of 83,831 shares of company stock worth $2,821,366 over the last quarter. Company insiders own 1.20% of the company's stock.

Hedge Funds Weigh In On Five9

A number of large investors have recently bought and sold shares of the business. Glenmede Trust Co. NA raised its position in shares of Five9 by 35.7% in the 1st quarter. Glenmede Trust Co. NA now owns 577,672 shares of the software maker's stock valued at $8,763,000 after buying an additional 151,974 shares in the last quarter. Squarepoint Ops LLC boosted its position in shares of Five9 by 12.1% during the 2nd quarter. Squarepoint Ops LLC now owns 374,506 shares of the software maker's stock worth $7,984,000 after acquiring an additional 40,519 shares in the last quarter. Legal & General Group Plc bought a new position in Five9 in the second quarter valued at approximately $1,263,000. Toth Financial Advisory Corp bought a new position in Five9 in the third quarter valued at approximately $988,000. Finally, OneDigital Investment Advisors LLC acquired a new position in Five9 during the second quarter valued at approximately $1,034,000. Institutional investors own 96.64% of the company's stock.

Trending Headlines about 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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