Five9 (NASDAQ:FIVN) Stock Falls 7.9% - What's Next?

Key Points

• Five9 shares fell 7.9% to about $32.32 in Friday’s mid-day trading, with volume down 90% from the average daily level.
• Analysts remain broadly positive, with 11 Buy ratings and 8 Holds producing a “Moderate Buy” consensus and an average price target of $35.53.
• Recent results exceeded expectations, with quarterly EPS of $0.70 versus $0.68 expected and revenue of $312.44 million, up 10.3% year over year; institutional investors own 96.64% of the stock.

Five9, Inc. (NASDAQ:FIVN - Get Free Report)'s share price was down 7.9% during mid-day trading on Friday. The stock traded as low as $33.00 and last traded at $32.3170. 268,776 shares changed hands during mid-day trading, a decline of 90% from the average daily volume of 2,698,320 shares. The stock had previously closed at $35.10.

Wall Street Analyst Weigh In

FIVN has been the subject of a number of recent research reports. Weiss Ratings raised shares of Five9 from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, October 8th. Canaccord Genuity Group upped their price objective on shares of Five9 from $33.00 to $39.00 and gave the stock a "buy" rating in a report on Monday, August 24th. Wall Street Zen downgraded shares of Five9 from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 8th. Robert W. Baird increased their price objective on shares of Five9 from $22.00 to $30.00 and gave the company a "neutral" rating in a research report on Monday, August 10th. Finally, Rosenblatt Securities upped their price objective on Five9 from $29.00 to $32.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Eleven research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $35.53.

Five9 Stock Performance

The company has a quick ratio of 4.15, a current ratio of 4.15 and a debt-to-equity ratio of 0.94. The company has a market cap of $2.48 billion, a PE ratio of 46.94 and a beta of 1.53. The business's fifty day moving average is $33.78 and its 200-day moving average is $25.67.

Five9 (NASDAQ:FIVN - Get Free Report) last announced its earnings results on Thursday, August 6th. The software maker reported $0.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.68 by $0.02. Five9 had a net margin of 4.94% and a return on equity of 12.92%. The company had revenue of $312.44 million during the quarter, compared to analyst estimates of $306.61 million. During the same period in the previous year, the business posted $0.76 earnings per share. The firm's quarterly revenue 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. As a group, research analysts predict that Five9, Inc. will post 1.55 EPS for the current fiscal year.

Insider Buying and Selling

In other Five9 news, CFO Bryan Lee sold 1,310 shares of the company's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $32.60, for a total value of $42,706.00. Following the completion of the sale, the chief financial officer owned 289,333 shares in the company, valued at $9,432,255.80. This represents a 0.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, 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, President Andy Dignan sold 6,986 shares of Five9 stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $35.00, for a total value of $244,510.00. Following the transaction, the president directly owned 237,614 shares in the company, valued at approximately $8,316,490. The trade was a 2.86% 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. Over the last ninety days, insiders sold 83,831 shares of company stock worth $2,821,366. Company insiders own 1.20% of the company's stock.

Institutional Trading of Five9

Institutional investors have recently made changes to their positions in the business. Anson Funds Management LP lifted its holdings in Five9 by 35.6% in the 1st quarter. Anson Funds Management LP now owns 2,086,675 shares of the software maker's stock worth $31,655,000 after purchasing an additional 547,304 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Five9 by 18.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,054,769 shares of the software maker's stock valued at $15,998,000 after purchasing an additional 165,623 shares during the last quarter. S Squared Technology LLC bought a new position in shares of Five9 during the 2nd quarter valued at about $10,983,957. Deutsche Bank AG bought a new position in shares of Five9 during the 2nd quarter valued at about $10,432,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Five9 during the second quarter valued at about $10,429,000. Hedge funds and other institutional investors own 96.64% of the company's stock.

About Five9

Five9, Inc provides cloud-based contact center software for businesses and other organizations. Its platform is designed to help companies manage customer interactions across voice, email, chat, social media and other digital channels without relying on traditional, on-premises contact center infrastructure.

The company's Intelligent Customer Experience (CX) Platform includes inbound and outbound communications, digital engagement, workforce optimization, analytics, workflow automation and customer relationship management integrations.

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