Five9 (NASDAQ:FIVN) Shares Up 8.7% After Analyst Upgrade

Key Points

• Five9 shares rose 8.7% to about $35.31 after Cantor Fitzgerald raised its price target from $34 to $40 while maintaining an overweight rating.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $34; Truist also recently lifted its target to $40.
• Five9 reported quarterly revenue of $312.4 million, up 10.3% year over year, and earnings of $0.70 per share, exceeding analyst estimates. Institutional investors own approximately 96.6% of the company.

Five9, Inc. (NASDAQ:FIVN - Get Free Report) shot up 8.7% during mid-day trading on Monday after Cantor Fitzgerald raised their price target on the stock from $34.00 to $40.00. Cantor Fitzgerald currently has an overweight rating on the stock. Five9 traded as high as $35.38 and last traded at $35.3090. Approximately 1,025,823 shares changed hands during trading, a decline of 63% from the average daily volume of 2,747,481 shares. The stock had previously closed at $32.47.

Several other brokerages also recently commented on FIVN. Robert W. Baird upped their target price on Five9 from $22.00 to $30.00 and gave the company a "neutral" rating in a report on Monday, August 10th. Wells Fargo & Company lifted their price objective on Five9 from $24.00 to $32.00 and gave the company an "equal weight" rating in a report on Tuesday, August 25th. UBS Group reiterated a "positive" rating on shares of Five9 in a report on Monday, August 31st. Truist Financial increased their price target on shares of Five9 from $35.00 to $40.00 and gave the company a "buy" rating in a report on Monday, August 31st. Finally, Wall Street Zen downgraded shares of Five9 from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 8th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $34.00.

Insider Buying and Selling

In other news, insider Tiffany N. Meriweather sold 13,409 shares of the firm's stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $33.31, for a total value of $446,653.79. Following the completion of the sale, the insider directly owned 258,363 shares of the company's stock, valued at $8,606,071.53. This trade represents a 4.93% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 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, CAO Leena Mansharamani sold 2,706 shares of Five9 stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $33.35, for a total transaction of $90,245.10. Following the sale, the chief accounting officer owned 53,670 shares of the company's stock, valued at approximately $1,789,894.50. The trade was a 4.80% 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. Over the last quarter, insiders have sold 76,845 shares of company stock worth $2,576,856. 1.20% of the stock is owned by corporate insiders.

Institutional Trading of Five9

Institutional investors and hedge funds have recently made changes to their positions in the stock. Glenmede Trust Co. NA lifted its holdings in shares of Five9 by 35.7% during the 1st quarter. Glenmede Trust Co. NA now owns 577,672 shares of the software maker's stock valued at $8,763,000 after acquiring an additional 151,974 shares in the last quarter. OneDigital Investment Advisors LLC acquired a new position in Five9 in the 2nd quarter worth $1,034,000. Nierenberg Investment Management Company LLC purchased a new position in Five9 in the 2nd quarter valued at about $2,895,469. Healthcare of Ontario Pension Plan Trust Fund purchased a new stake in shares of Five9 during the first quarter worth about $782,000. Finally, Militia Capital Management LLC acquired a new position in shares of Five9 in the first quarter worth about $2,123,000. 96.64% of the stock is currently owned by hedge funds and other institutional investors.

Five9 Price Performance

The company has a debt-to-equity ratio of 0.94, a current ratio of 4.15 and a quick ratio of 4.15. The business has a fifty day moving average of $30.31 and a 200 day moving average of $23.13. The stock has a market cap of $2.70 billion, a PE ratio of 51.13 and a beta of 1.48.

Five9 (NASDAQ:FIVN - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The software maker reported $0.70 earnings per share for the quarter, beating analysts' consensus estimates of $0.68 by $0.02. Five9 had a net margin of 4.94% and a return on equity of 12.92%. The business had revenue of $312.44 million during the quarter, compared to the consensus estimate of $306.61 million. During the same quarter in the prior year, the firm earned $0.76 EPS. The company's revenue for the quarter was up 10.3% compared to the same quarter last year. Five9 has set its Q3 2026 guidance at 0.770-0.810 EPS and its FY 2026 guidance at 3.220-3.300 EPS. Sell-side analysts anticipate that Five9, Inc. will post 1.55 earnings per share for the current year.

Five9 Company Profile

Five9, Inc provides cloud-based contact center software and customer experience solutions. Its platform is designed to help organizations manage customer interactions across voice, email, chat, social media and other digital channels from a centralized, cloud-based environment.

The company's offerings include inbound and outbound contact center capabilities, digital engagement tools, interactive voice response, workforce engagement management, analytics, workflow automation and artificial intelligence features.

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