Five9 (NASDAQ:FIVN) Downgraded to "Hold" Rating by Zacks Research

Key Points

• Zacks Research downgraded Five9 from “strong-buy” to “hold,” even as the broader analyst community still rates the stock a Moderate Buy with an average price target of $26.53.
• Five9 reported better-than-expected quarterly results, posting EPS of $0.76 versus estimates of $0.69 and revenue of $305.32 million versus $299.92 million expected. Revenue rose 9.2% year over year.
• The stock was down 4.3% and opened at $23.95, while recent insider and institutional activity showed mixed signals, including an insider sale and continued buying by large funds.

Five9 (NASDAQ:FIVN - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Tuesday,Zacks.com reports.

Several other research analysts have also weighed in on FIVN. Canaccord Genuity Group dropped their price objective on shares of Five9 from $40.00 to $33.00 and set a "buy" rating on the stock in a research note on Friday, February 20th. Cantor Fitzgerald upped their price objective on shares of Five9 from $22.00 to $24.00 and gave the company an "overweight" rating in a research note on Friday, May 1st. Rosenblatt Securities upped their price objective on shares of Five9 from $26.00 to $29.00 and gave the company a "buy" rating in a research note on Tuesday, May 5th. Royal Bank Of Canada dropped their price objective on shares of Five9 from $35.00 to $25.00 and set an "outperform" rating on the stock in a research note on Friday, February 20th. Finally, Piper Sandler reiterated a "neutral" rating and issued a $24.00 price objective (up from $21.00) on shares of Five9 in a research note on Friday, May 1st. Eleven research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $26.53.

Five9 Stock Down 4.3%

FIVN stock opened at $23.95 on Tuesday. Five9 has a 52-week low of $13.29 and a 52-week high of $30.38. The company's 50 day simple moving average is $18.56 and its 200-day simple moving average is $18.56. The company has a debt-to-equity ratio of 0.89, a current ratio of 4.51 and a quick ratio of 4.51. The firm has a market capitalization of $1.83 billion, a P/E ratio of 36.29, a P/E/G ratio of 1.11 and a beta of 1.45.

Five9 (NASDAQ:FIVN - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The software maker reported $0.76 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.69 by $0.07. Five9 had a net margin of 4.87% and a return on equity of 12.66%. The business had revenue of $305.32 million for the quarter, compared to analyst estimates of $299.92 million. During the same quarter in the previous year, the business earned $0.62 earnings per share. The firm's revenue was up 9.2% compared to the same quarter last year. Five9 has set its FY 2026 guidance at 3.220-3.300 EPS and its Q2 2026 guidance at 0.650-0.690 EPS. As a group, equities research analysts anticipate that Five9 will post 1.39 EPS for the current year.

Insider Buying and Selling

In other Five9 news, insider Tiffany N. Meriweather sold 21,320 shares of the business's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $20.98, for a total value of $447,293.60. Following the completion of the sale, the insider directly owned 281,298 shares of the company's stock, valued at $5,901,632.04. The trade was a 7.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 1.20% of the stock is owned by corporate insiders.

Institutional Trading of Five9

Several large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its position in Five9 by 8.2% in the fourth quarter. Vanguard Group Inc. now owns 10,037,395 shares of the software maker's stock worth $201,250,000 after acquiring an additional 759,237 shares in the last quarter. Voss Capital LP grew its position in Five9 by 40.0% in the third quarter. Voss Capital LP now owns 4,550,000 shares of the software maker's stock worth $110,110,000 after acquiring an additional 1,300,000 shares in the last quarter. Van Berkom & Associates Inc. grew its position in Five9 by 28.0% in the fourth quarter. Van Berkom & Associates Inc. now owns 3,596,380 shares of the software maker's stock worth $72,107,000 after acquiring an additional 787,626 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Five9 by 10.3% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,320,745 shares of the software maker's stock worth $56,162,000 after acquiring an additional 217,227 shares in the last quarter. Finally, Anson Funds Management LP grew 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. 96.64% of the stock is owned by institutional investors.

Five9 Company Profile

Five9, Inc NASDAQ: FIVN is a leading provider of cloud-based contact center software designed to help organizations manage customer interactions across voice, email, chat, social media and other digital channels. Its platform offers features such as intelligent routing, analytics, workforce optimization and integrated customer relationship management (CRM) connectors. The company emphasizes AI-driven capabilities, including virtual agents and predictive dialing, to enhance both agent productivity and customer experience.

Founded in 2001 and headquartered in San Ramon, California, Five9 completed its initial public offering in February 2014.

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