Five9 Target of Unusually High Options Trading (NASDAQ:FIVN)

Key Points

• Five9, Inc. experienced a significant surge in options trading, with a 2,115% increase in call options, totaling 8,504 contracts traded on a recent Tuesday.
• Wall Street analysts show strong support for Five9, with a consensus rating of "Moderate Buy" and an average target price of $37.88, highlighting expectations for growth despite a recent price reduction by Piper Sandler.
• Recent insider transactions indicate a decrease in ownership among executives, with CEO Michael Burkland selling over 18,000 shares, marking a 4.77% reduction in his stake in the company.

Five9, Inc. (NASDAQ:FIVN - Get Free Report) saw unusually large options trading activity on Tuesday. Stock traders bought 8,504 call options on the company. This represents an increase of approximately 2,115% compared to the average volume of 384 call options.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on FIVN. Rosenblatt Securities reissued a "buy" rating and set a $36.00 target price on shares of Five9 in a research note on Friday, August 1st. Piper Sandler decreased their price target on shares of Five9 from $36.00 to $31.00 and set an "overweight" rating on the stock in a research note on Monday, July 14th. DA Davidson reissued a "neutral" rating and set a $28.00 price objective on shares of Five9 in a report on Friday, September 12th. Canaccord Genuity Group restated a "buy" rating and set a $40.00 price objective on shares of Five9 in a research report on Friday, August 1st. Finally, Wall Street Zen raised Five9 from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 2nd. Thirteen research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $37.88.

Five9 Stock Performance

NASDAQ FIVN opened at $22.17 on Wednesday. The company has a market cap of $1.71 billion, a P/E ratio of 246.36, a P/E/G ratio of 2.18 and a beta of 1.19. The business's 50 day moving average price is $25.63 and its 200-day moving average price is $26.20. Five9 has a fifty-two week low of $21.04 and a fifty-two week high of $49.90. The company has a debt-to-equity ratio of 1.04, a quick ratio of 4.44 and a current ratio of 4.44.

Five9 (NASDAQ:FIVN - Get Free Report) last announced its earnings results on Thursday, July 31st. The software maker reported $0.76 earnings per share for the quarter, beating the consensus estimate of $0.65 by $0.11. Five9 had a net margin of 0.80% and a return on equity of 8.91%. The business had revenue of $283.27 million for the quarter, compared to the consensus estimate of $275.18 million. During the same quarter in the prior year, the firm posted $0.52 earnings per share. The business's revenue for the quarter was up 12.4% on a year-over-year basis. Five9 has set its Q3 2025 guidance at 0.720-0.740 EPS. FY 2025 guidance at 2.860-2.900 EPS. Sell-side analysts predict that Five9 will post 0.28 earnings per share for the current year.

Insider Buying and Selling at Five9

In related news, CEO Michael Burkland sold 18,425 shares of the company's stock in a transaction on Thursday, September 4th. The shares were sold at an average price of $25.72, for a total value of $473,891.00. Following the completion of the transaction, the chief executive officer owned 367,562 shares of the company's stock, valued at approximately $9,453,694.64. This represents a 4.77% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Panos Kozanian sold 10,860 shares of the firm's stock in a transaction dated Thursday, September 4th. The shares were sold at an average price of $25.87, for a total value of $280,948.20. Following the sale, the executive vice president directly owned 105,315 shares in the company, valued at approximately $2,724,499.05. This represents a 9.35% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 60,781 shares of company stock valued at $1,563,724. 1.60% of the stock is currently owned by company insiders.

Institutional Trading of Five9

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Assenagon Asset Management S.A. boosted its stake in shares of Five9 by 238.8% during the third quarter. Assenagon Asset Management S.A. now owns 724,604 shares of the software maker's stock valued at $17,535,000 after purchasing an additional 510,714 shares during the period. Mirador Capital Partners LP boosted its position in Five9 by 28.0% during the 3rd quarter. Mirador Capital Partners LP now owns 40,544 shares of the software maker's stock valued at $981,000 after acquiring an additional 8,871 shares in the last quarter. Osaic Holdings Inc. increased its holdings in shares of Five9 by 682.8% in the 2nd quarter. Osaic Holdings Inc. now owns 15,108 shares of the software maker's stock valued at $410,000 after acquiring an additional 13,178 shares during the period. Hudson Bay Capital Management LP bought a new stake in Five9 during the second quarter valued at about $416,000. Finally, Tower Research Capital LLC TRC raised its stake in shares of Five9 by 2,005.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,663 shares of the software maker's stock worth $203,000 after acquiring an additional 7,299 shares in the last quarter. Hedge funds and other institutional investors own 96.64% of the company's stock.

About Five9

Five9, Inc, together with its subsidiaries, provides intelligent cloud software for contact centers in the United States, India, and internationally. It offers a virtual contact center cloud platform that delivers a suite of applications, which enables the breadth of contact center-related customer service, sales, and marketing functions.

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