Five9, Inc. (NASDAQ:FIVN) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts have given Five9, Inc. a consensus rating of "Moderate Buy", with 13 buy recommendations and 5 hold recommendations from 18 research firms.
• The company's stock price target has shifted, with recent adjustments lowering estimates from over $50 to an average of $37.59 among brokers.
• Five9 reported a revenue increase of 12.4% year-over-year, with earnings per share of $0.76 in its latest quarterly results, exceeding analysts' expectations.

Shares of Five9, Inc. (NASDAQ:FIVN - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the eighteen research firms that are covering the firm, MarketBeat.com reports. Five equities research analysts have rated the stock with a hold recommendation and thirteen have given a buy recommendation to the company. The average 12 month price objective among brokers that have covered the stock in the last year is $37.5882.

FIVN has been the subject of a number of recent analyst reports. Needham & Company LLC reduced their price objective on Five9 from $52.00 to $40.00 and set a "buy" rating for the company in a research note on Friday, May 2nd. Evercore ISI reduced their price objective on Five9 from $55.00 to $40.00 and set an "outperform" rating for the company in a research note on Friday, May 2nd. KeyCorp initiated coverage on Five9 in a research note on Friday, June 6th. They issued an "overweight" rating and a $35.00 price objective for the company. Rosenblatt Securities restated a "buy" rating and issued a $36.00 price objective on shares of Five9 in a research note on Friday, August 1st. Finally, Wall Street Zen upgraded Five9 from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 2nd.

Five9 Trading Down 2.7%

Shares of Five9 stock opened at $25.99 on Wednesday. The stock has a fifty day simple moving average of $26.70 and a 200 day simple moving average of $28.30. Five9 has a 12-month low of $21.04 and a 12-month high of $49.90. The company has a market capitalization of $2.01 billion, a P/E ratio of 288.81, a price-to-earnings-growth ratio of 2.52 and a beta of 1.17. The company has a current ratio of 4.44, a quick ratio of 4.44 and a debt-to-equity ratio of 1.04.

Five9 (NASDAQ:FIVN - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The software maker reported $0.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.65 by $0.11. Five9 had a return on equity of 8.91% and a net margin of 0.80%.The business had revenue of $283.27 million during the quarter, compared to the consensus estimate of $275.18 million. During the same quarter in the prior year, the company posted $0.52 earnings per share. Five9's revenue was up 12.4% compared to the same quarter last year. Five9 has set its Q3 2025 guidance at 0.720-0.740 EPS. FY 2025 guidance at 2.860-2.900 EPS. On average, sell-side analysts anticipate that Five9 will post 0.28 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Bryan M. Lee sold 1,798 shares of the company's stock in a transaction on Wednesday, June 4th. The stock was sold at an average price of $28.28, for a total transaction of $50,847.44. Following the transaction, the chief financial officer owned 126,468 shares of the company's stock, valued at $3,576,515.04. This represents a 1.40% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Michael Burkland sold 12,594 shares of the company's stock in a transaction on Tuesday, June 3rd. The shares were sold at an average price of $27.17, for a total value of $342,178.98. Following the transaction, the chief executive officer directly owned 391,462 shares in the company, valued at $10,636,022.54. This represents a 3.12% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 40,609 shares of company stock worth $1,113,133. 1.60% of the stock is owned by company insiders.

Institutional Trading of Five9

Institutional investors have recently added to or reduced their stakes in the stock. Nisa Investment Advisors LLC purchased a new stake in Five9 during the 2nd quarter worth about $32,000. Banque Transatlantique SA purchased a new stake in Five9 during the 4th quarter worth about $36,000. Johnson Financial Group Inc. purchased a new stake in Five9 during the 4th quarter worth about $47,000. Kayne Anderson Rudnick Investment Management LLC lifted its holdings in Five9 by 419.2% during the 1st quarter. Kayne Anderson Rudnick Investment Management LLC now owns 2,243 shares of the software maker's stock worth $61,000 after purchasing an additional 1,811 shares in the last quarter. Finally, Quarry LP purchased a new stake in Five9 during the 1st quarter worth about $74,000. Hedge funds and other institutional investors own 96.64% of the company's stock.

About Five9

Five9, Inc, together with its subsidiaries, provides intelligent cloud software for contact centers in the United States, India, and internationally. It offers a virtual contact center cloud platform that delivers a suite of applications, which enables the breadth of contact center-related customer service, sales, and marketing functions.

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