Five9 (NASDAQ:FIVN) Rating Lowered to Buy at Wall Street Zen

Key Points

• Wall Street Zen downgraded Five9 from “strong buy” to “buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $29.64.
• Five9 exceeded quarterly expectations, reporting $0.70 adjusted EPS versus $0.68 expected and $312.44 million in revenue versus $306.61 million expected; revenue rose 10.3% year over year.
• Shares opened at $33.99, near their 52-week high of $34.10, after several analysts raised price targets, although some maintained neutral or hold ratings amid valuation concerns.

Five9 (NASDAQ:FIVN - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued on Saturday.

A number of other equities analysts also recently weighed in on FIVN. Truist Financial boosted their target price on shares of Five9 from $23.00 to $35.00 and gave the stock a "buy" rating in a research note on Friday. Piper Sandler increased their price target on shares of Five9 from $24.00 to $30.00 and gave the company a "neutral" rating in a research note on Friday. Cantor Fitzgerald raised their price target on shares of Five9 from $32.00 to $34.00 and gave the company an "overweight" rating in a report on Monday. Jefferies Financial Group restated a "hold" rating on shares of Five9 in a research report on Friday, May 1st. Finally, DA Davidson set a $22.00 price objective on Five9 in a report on Monday. Ten research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $29.64.

Five9 Price Performance

Shares of FIVN stock opened at $33.99 on Friday. Five9 has a 52 week low of $13.29 and a 52 week high of $34.10. The stock has a market capitalization of $2.60 billion, a PE ratio of 49.26 and a beta of 1.42. The company has a debt-to-equity ratio of 0.89, a quick ratio of 4.51 and a current ratio of 4.51. The stock's fifty day moving average is $23.94 and its 200-day moving average is $19.89.

Five9 (NASDAQ:FIVN - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The software maker reported $0.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.68 by $0.02. The business had revenue of $312.44 million during the quarter, compared to analysts' expectations of $306.61 million. Five9 had a return on equity of 12.87% and a net margin of 4.94%.The firm's revenue for the quarter was up 10.3% compared to the same quarter last year. During the same period in the previous year, the business posted $0.76 earnings per share. Five9 has set its Q3 2026 guidance at 0.770-0.810 EPS and its FY 2026 guidance at 3.220-3.300 EPS. Equities research analysts expect that Five9 will post 1.39 EPS for the current fiscal year.

Insider Buying and Selling

In other news, President Andy Dignan sold 8,203 shares of Five9 stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $24.76, for a total transaction of $203,106.28. Following the completion of the sale, the president owned 278,760 shares in the company, valued at $6,902,097.60. The trade was a 2.86% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 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 16,620 shares of the business's stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $24.81, for a total transaction of $412,342.20. Following the sale, the chief financial officer directly owned 311,462 shares of the company's stock, valued at approximately $7,727,372.22. This trade represents a 5.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. In the last ninety days, insiders have sold 85,820 shares of company stock worth $2,014,057. 1.20% of the stock is currently owned by company insiders.

Institutional Trading of Five9

Institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. boosted its position in shares of Five9 by 8.2% in the 4th quarter. Vanguard Group Inc. now owns 10,037,395 shares of the software maker's stock worth $201,250,000 after purchasing an additional 759,237 shares during the last quarter. Van Berkom & Associates Inc. increased its holdings 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 valued at $72,107,000 after purchasing an additional 787,626 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings 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 valued at $56,162,000 after purchasing an additional 217,227 shares during the last quarter. Anson Funds Management LP lifted its stake 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 valued at $31,655,000 after buying an additional 547,304 shares during the period. Finally, Geode Capital Management LLC lifted its stake in Five9 by 1.9% in the fourth quarter. Geode Capital Management LLC now owns 1,996,382 shares of the software maker's stock valued at $40,034,000 after buying an additional 37,261 shares during the period. Institutional investors own 96.64% of the company's stock.

Five9 News Roundup

Here are the key news stories impacting Five9 this week:

• Positive Sentiment: Quarterly results exceeded expectations: Five9 reported adjusted earnings of $0.70 per share, above the $0.68 consensus estimate, while revenue reached $312.44 million versus expectations of $306.61 million. Revenue increased 10.3% year over year, reinforcing the company’s continued growth in cloud contact-center software. Five9 Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: 2026 guidance was raised above analyst expectations: Five9 forecast third-quarter adjusted EPS of $0.77–$0.81, ahead of the $0.74 consensus, and revenue of $316 million–$322 million versus expectations of $314.6 million. Full-year EPS guidance of $3.22–$3.30 also exceeded the $2.88 consensus estimate, suggesting improved profitability expectations. Five9 Q2 Sales Beat Estimates
• Positive Sentiment: Analysts lifted their targets: Truist raised its target from $23 to $35 while maintaining a Buy rating, and Rosenblatt increased its target from $29 to $32 and kept a Buy rating. These revisions indicate greater confidence following the earnings report.
• Neutral Sentiment: Analyst views remain mixed: Piper Sandler raised its target from $24 to $30 but retained a Neutral rating, leaving its valuation below the prevailing share price. This suggests some analysts believe much of the improved outlook is already reflected in FIVN’s valuation. Analyst Price Target Updates
• Negative Sentiment: Profit growth was not uniform: Quarterly EPS declined from $0.76 in the year-earlier period to $0.70, despite the earnings beat. Investors may also monitor whether the company can sustain double-digit revenue growth after the recent rally.

About Five9

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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