Five9 (NASDAQ:FIVN) Stock Price Down 5.5% - Here's Why

Key Points

• Shares of Five9 fell 5.5% on Tuesday, trading as low as $16.75 and last at $17.06, with volume of 474,363 shares—about an 82% drop versus average session volume.
• Several analysts trimmed price targets (examples: Morgan Stanley to $26, Cantor Fitzgerald to $26, Mizuho to $28, Truist to $23), but the consensus remains a Moderate Buy with a $27.12 target and a 13 Buy / 7 Hold / 1 Sell split.
• Five9 slightly beat quarterly estimates (EPS $0.80 vs. $0.79; revenue $300.28M vs. $298.21M), provided Q1 2026 and FY2026 EPS guidance, and approved a $50 million share buyback (~3.2% of stock).

Five9, Inc. (NASDAQ:FIVN - Get Free Report) shares traded down 5.5% on Tuesday . The stock traded as low as $16.75 and last traded at $17.0560. 474,363 shares changed hands during trading, a decline of 82% from the average session volume of 2,624,753 shares. The stock had previously closed at $18.04.

Analysts Set New Price Targets

A number of equities analysts have issued reports on FIVN shares. Weiss Ratings restated a "sell (d+)" rating on shares of Five9 in a research report on Monday, December 29th. Morgan Stanley cut their target price on Five9 from $30.00 to $26.00 and set an "equal weight" rating on the stock in a research note on Thursday, January 15th. Cantor Fitzgerald reduced their price target on Five9 from $32.00 to $26.00 and set an "overweight" rating on the stock in a report on Friday, February 20th. Mizuho lowered their price target on Five9 from $35.00 to $28.00 and set an "outperform" rating for the company in a research report on Friday, February 20th. Finally, Truist Financial dropped their price objective on Five9 from $40.00 to $23.00 and set a "buy" rating for the company in a report on Friday, February 20th. Thirteen 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's stock. Based on data from MarketBeat, Five9 presently has an average rating of "Moderate Buy" and a consensus target price of $27.12.

Five9 Price Performance

The company has a current ratio of 4.51, a quick ratio of 4.51 and a debt-to-equity ratio of 0.94. The business's 50 day moving average price is $18.10 and its two-hundred day moving average price is $21.10. The stock has a market cap of $1.31 billion, a P/E ratio of 37.32, a price-to-earnings-growth ratio of 0.88 and a beta of 1.29.

Five9 (NASDAQ:FIVN - Get Free Report) last released its quarterly earnings results on Thursday, February 19th. The software maker reported $0.80 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.79 by $0.01. The company had revenue of $300.28 million during the quarter, compared to the consensus estimate of $298.21 million. Five9 had a net margin of 3.43% and a return on equity of 10.95%. Five9's revenue was up 7.8% on a year-over-year basis. During the same period in the prior year, the firm earned $0.79 earnings per share. Five9 has set its Q1 2026 guidance at 0.100-0.170 EPS and its FY 2026 guidance at 0.860-0.950 EPS. As a group, sell-side analysts expect that Five9, Inc. will post 0.28 earnings per share for the current fiscal year.

Five9 declared that its board has approved a share buyback plan on Tuesday, November 11th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the software maker to buy up to 3.2% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Institutional Investors Weigh In On Five9

Several hedge funds and other institutional investors have recently added to or reduced their stakes in FIVN. Alpine Global Management LLC bought a new position in Five9 in the fourth quarter worth $210,000. Villanova Investment Management Co LLC boosted its holdings in shares of Five9 by 61.6% during the 4th quarter. Villanova Investment Management Co LLC now owns 125,261 shares of the software maker's stock valued at $2,511,000 after buying an additional 47,761 shares in the last quarter. Pacer Advisors Inc. purchased a new stake in shares of Five9 in the 4th quarter worth about $4,733,000. Invesco Ltd. grew its position in shares of Five9 by 45.7% in the 4th quarter. Invesco Ltd. now owns 167,947 shares of the software maker's stock worth $3,367,000 after buying an additional 52,672 shares during the period. Finally, Mercer Global Advisors Inc. ADV bought a new position in shares of Five9 in the 4th quarter worth about $312,000. 96.64% of the stock is owned by hedge funds and other institutional investors.

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.

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