Five9 (NASDAQ:FIVN) Shares Down 10.5% After Insider Selling

Key Points

• Five9 shares fell 10.5% after insider selling, with the stock dropping to as low as $21.03 during midday trading.
• President Andy Dignan and CFO Bryan M. Lee sold shares in pre-arranged 10b5-1 transactions, which the company said were mainly to cover tax withholding tied to equity vesting.
• Despite the selloff, analysts still have a Moderate Buy view overall, with a consensus target price of $25.93 and recent commentary focused on Five9’s AI growth story and valuation.

Five9, Inc. (NASDAQ:FIVN - Get Free Report) shares fell 10.5% during mid-day trading on Tuesday after an insider sold shares in the company. The company traded as low as $21.03 and last traded at $20.7120. 1,243,322 shares changed hands during mid-day trading, a decline of 56% from the average session volume of 2,843,412 shares. The stock had previously closed at $23.15.

Specifically, President Andy Dignan sold 3,073 shares of Five9 stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $24.25, for a total value of $74,520.25. Following the sale, the president owned 275,687 shares of the company's stock, valued at approximately $6,685,409.75. The trade was a 1.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, 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, President Andy Dignan sold 8,203 shares of the business's stock in a transaction dated 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 directly owned 278,760 shares of the company's stock, valued at approximately $6,902,097.60. The trade was a 2.86% 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. In other Five9 news, CFO Bryan M. Lee sold 1,511 shares of the business's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $24.25, for a total value of $36,641.75. Following the completion of the sale, the chief financial officer owned 309,951 shares of the company's stock, valued at $7,516,311.75. The trade was a 0.49% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at 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.

Analysts Set New Price Targets

FIVN has been the subject of several recent analyst reports. Royal Bank Of Canada lowered their price objective on shares of Five9 from $35.00 to $25.00 and set an "outperform" rating for the company in a research report on Friday, February 20th. Truist Financial decreased their target price on shares of Five9 from $40.00 to $23.00 and set a "buy" rating on the stock in a research note on Friday, February 20th. DA Davidson upped their price target on shares of Five9 from $19.00 to $22.00 and gave the stock a "neutral" rating in a report on Friday, May 1st. Canaccord Genuity Group cut their price objective on Five9 from $40.00 to $33.00 and set a "buy" rating on the stock in a report on Friday, February 20th. Finally, UBS Group upped their target price on Five9 from $22.00 to $25.00 and gave the stock a "buy" rating in a report on Friday, May 1st. Ten investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $25.93.

Five9 News Roundup

Here are the key news stories impacting Five9 this week:

• Positive Sentiment: Five9 was named to the 2026 Fortune Best Workplaces in the Bay Area, a small positive for brand strength and employee appeal. Fortune Media and Great Place To Work Name Five9 to 2026 Fortune Best Workplaces in the Bay Area™
• Neutral Sentiment: Five9 continues to point to AI-driven growth as part of its investment case, and a recent valuation-focused article highlighted the stock’s pullback as investors reassess the company’s long-term narrative. Assessing Five9 (FIVN) Valuation After Recent Share Price Pullback And AI Growth Narrative
• Negative Sentiment: Multiple Five9 insiders, including CFO Bryan M. Lee, President Andy Dignan, CAO Leena Mansharamani, CRO Matthew E. Tuckness, EVP Panos Kozanian, and insider Tiffany N. Meriweather, sold shares in pre-arranged 10b5-1 transactions. The company said the sales were mainly for tax withholding tied to equity vesting, but the concentration of selling can still hurt sentiment. Bryan Lee Sells 1,511 Shares of Five9 NASDAQ: FIVN Stock

Five9 Stock Performance

The company has a market cap of $1.59 billion, a P/E ratio of 31.45, a price-to-earnings-growth ratio of 1.04 and a beta of 1.45. The company has a quick ratio of 4.51, a current ratio of 4.51 and a debt-to-equity ratio of 0.89. The company's 50-day moving average is $19.09 and its two-hundred day moving average is $18.66.

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

Hedge Funds Weigh In On Five9

A number of hedge funds have recently added to or reduced their stakes in the company. Amundi boosted its holdings in shares of Five9 by 8.3% during the 1st quarter. Amundi now owns 40,291 shares of the software maker's stock valued at $1,017,000 after acquiring an additional 3,079 shares during the last quarter. Guggenheim Capital LLC grew its position in Five9 by 95.7% during the 2nd quarter. Guggenheim Capital LLC now owns 27,826 shares of the software maker's stock worth $737,000 after purchasing an additional 13,606 shares during the period. California Public Employees Retirement System lifted its stake in Five9 by 39.4% in the 2nd quarter. California Public Employees Retirement System now owns 121,700 shares of the software maker's stock worth $3,223,000 after purchasing an additional 34,375 shares in the last quarter. Qube Research & Technologies Ltd grew its position in Five9 by 52.7% in the 2nd quarter. Qube Research & Technologies Ltd now owns 31,182 shares of the software maker's stock valued at $826,000 after acquiring an additional 10,755 shares in the last quarter. Finally, The Manufacturers Life Insurance Company grew its stake in Five9 by 147.2% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 40,137 shares of the software maker's stock worth $1,063,000 after buying an additional 23,901 shares during the last quarter. 96.64% of the stock is currently owned by hedge funds and other 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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