Five9 (NASDAQ:FIVN) Trading Down 5.6% - Should You Sell?

Key Points

• Five9 shares fell 5.6% on Wednesday, trading as low as $23.25 before last changing hands at $23.81. Volume was well below average, with about 258,085 shares traded versus a 2.74 million daily average.
• Analyst sentiment remains mixed but constructive, with MarketBeat showing an average rating of “Moderate Buy” and an average price target of $25.93. Recent targets ranged from $22 to $29, and the stock has 11 Buy-or-better ratings versus 6 Holds and 1 Sell.
• Five9’s latest earnings beat expectations, reporting $0.76 EPS on revenue of $305.32 million, both above estimates, while revenue rose 9.2% year over year. The company also gave FY2026 EPS guidance of 3.22 to 3.30.

Five9, Inc. (NASDAQ:FIVN - Get Free Report) shares dropped 5.6% during trading on Wednesday . The stock traded as low as $23.25 and last traded at $23.81. 258,085 shares changed hands during mid-day trading, a decline of 91% from the average session volume of 2,738,548 shares. The stock had previously closed at $25.23.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on FIVN shares. Truist Financial set a $23.00 price target on shares of Five9 in a report on Wednesday, July 1st. DA Davidson raised their price objective on shares of Five9 from $19.00 to $22.00 and gave the stock a "neutral" rating in a research note on Friday, May 1st. Weiss Ratings raised shares of Five9 from a "sell (d)" rating to a "sell (d+)" rating in a research note on Tuesday, May 19th. Cantor Fitzgerald raised their target price on Five9 from $22.00 to $24.00 and gave the stock an "overweight" rating in a research report on Friday, May 1st. Finally, Rosenblatt Securities reissued a "buy" rating and set a $29.00 price target on shares of Five9 in a research report on Wednesday, June 24th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $25.93.

Five9 Trading Down 8.0%

The stock has a market cap of $1.78 billion, a price-to-earnings ratio of 35.11, a price-to-earnings-growth ratio of 1.14 and a beta of 1.46. 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 company's 50 day simple moving average is $22.65 and its two-hundred day simple moving average is $19.17.

Five9 (NASDAQ:FIVN - Get Free Report) last issued its 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 company had revenue of $305.32 million during the quarter, compared to analyst estimates of $299.92 million. During the same quarter last year, the business posted $0.62 EPS. The company's revenue for the quarter was up 9.2% on a year-over-year basis. Five9 has set its FY 2026 guidance at 3.220-3.300 EPS and its Q2 2026 guidance at 0.650-0.690 EPS. Research analysts expect that Five9, Inc. will post 1.39 EPS for the current fiscal year.

Insider Activity

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 stock was sold at an average price of $24.25, for a total value of $36,641.75. Following the transaction, the chief financial officer owned 309,951 shares in the company, valued at $7,516,311.75. The trade was a 0.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available 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 3,073 shares of the firm's 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 directly owned 275,687 shares of the company's stock, valued at $6,685,409.75. This trade represents a 1.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 quarter, insiders have sold 85,820 shares of company stock valued at $2,014,057. 1.20% of the stock is currently owned by company insiders.

Institutional Trading of Five9

A number of institutional investors have recently added to or reduced their stakes in the business. Tactive Advisors LLC bought a new stake in Five9 in the second quarter worth approximately $232,000. Pacer Advisors Inc. raised its holdings in shares of Five9 by 71.0% during the 1st quarter. Pacer Advisors Inc. now owns 403,644 shares of the software maker's stock valued at $6,123,000 after purchasing an additional 167,574 shares in the last quarter. Militia Capital Management LLC acquired a new stake in shares of Five9 in the 1st quarter valued at $2,123,000. NewEdge Advisors LLC acquired a new stake in shares of Five9 in the 1st quarter valued at $38,000. Finally, Optiver Holding B.V. boosted its holdings in Five9 by 575.9% in the first quarter. Optiver Holding B.V. now owns 2,325 shares of the software maker's stock worth $35,000 after purchasing an additional 1,981 shares in the last quarter. 96.64% of the stock is currently owned by institutional investors and hedge funds.

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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