Investors Purchase Large Volume of Five9 Call Options (NASDAQ:FIVN)

Key Points

• Five9, Inc. experienced a significant surge in options trading, with traders purchasing 8,504 call options, reflecting a 2,115% increase compared to typical volumes.
• Insider trading activity included CAO Leena Mansharamani and President Andy Dignan selling shares, decreasing their ownership by 6.14% and 2.08%, respectively, with insiders collectively selling 32,866 shares worth around $913,042 in the past 90 days.
• Analysts have recently adjusted their price targets for Five9, with estimates now ranging from $31.00 to $42.00, indicating a moderate buy rating overall.

Five9, Inc. (NASDAQ:FIVN - Get Free Report) was the target of some unusual options trading activity on Tuesday. Traders purchased 8,504 call options on the stock. Thisrepresentsanincreaseof2,115% compared to the average daily volume of 384 call options.

Analyst Ratings Changes

Several equities research analysts recently commented on FIVN shares. Piper Sandler reduced their price target on shares of Five9 from $36.00 to $31.00 and set an "overweight" rating for the company in a research report on Monday, July 14th. Jefferies Financial Group reduced their price target on shares of Five9 from $45.00 to $28.00 and set a "hold" rating for the company in a research report on Monday, April 28th. Needham & Company LLC reduced their price target on shares of Five9 from $52.00 to $40.00 and set a "buy" rating for the company in a research report on Friday, May 2nd. DA Davidson restated a "neutral" rating and issued a $28.00 price target (up previously from $25.00) on shares of Five9 in a research report on Friday. Finally, Evercore ISI reduced their price target on shares of Five9 from $55.00 to $40.00 and set an "outperform" rating for the company in a research report on Friday, May 2nd. Six equities research analysts have rated the stock with a hold rating, seventeen have given a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $41.14.

Five9 Stock Down 6.0%

Shares of Five9 stock traded down $1.55 during midday trading on Friday, reaching $24.28. 6,300,693 shares of the company's stock traded hands, compared to its average volume of 1,734,645. The company has a market cap of $1.85 billion, a price-to-earnings ratio of 269.81, a price-to-earnings-growth ratio of 2.46 and a beta of 1.17. The company's 50 day simple moving average is $27.42 and its 200 day simple moving average is $30.05. The company has a debt-to-equity ratio of 1.12, a quick ratio of 2.02 and a current ratio of 2.02. Five9 has a 52 week low of $21.04 and a 52 week high of $49.90.

Five9 (NASDAQ:FIVN - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The software maker reported $0.76 earnings per share for the quarter, beating analysts' consensus estimates of $0.65 by $0.11. The business had revenue of $283.27 million for the quarter, compared to the consensus estimate of $275.18 million. Five9 had a net margin of 0.80% and a return on equity of 9.27%. Five9's revenue for the quarter was up 12.4% on a year-over-year basis. During the same quarter last year, the firm earned $0.52 EPS. Equities analysts expect that Five9 will post 0.28 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Panos Kozanian sold 3,816 shares of the firm's stock in a transaction that occurred on Wednesday, June 4th. The shares were sold at an average price of $28.28, for a total transaction of $107,916.48. Following the completion of the sale, the executive vice president directly owned 123,218 shares in the company, valued at approximately $3,484,605.04. This trade represents a 3.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Bryan M. Lee sold 1,798 shares of the firm's stock in a transaction that occurred on Wednesday, June 4th. The stock was sold at an average price of $28.28, for a total transaction of $50,847.44. Following the sale, the chief financial officer owned 126,468 shares of the company's stock, valued at $3,576,515.04. The trade was a 1.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 32,866 shares of company stock valued at $913,042. 1.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Quantinno Capital Management LP acquired a new position in Five9 in the 4th quarter valued at $287,000. Royal Bank of Canada grew its stake in Five9 by 6.0% in the 4th quarter. Royal Bank of Canada now owns 369,001 shares of the software maker's stock valued at $14,997,000 after buying an additional 20,775 shares during the last quarter. Man Group plc acquired a new position in Five9 in the 4th quarter valued at $354,000. Geode Capital Management LLC grew its stake in Five9 by 8.7% in the 4th quarter. Geode Capital Management LLC now owns 1,317,450 shares of the software maker's stock valued at $53,558,000 after buying an additional 105,265 shares during the last quarter. Finally, Cetera Investment Advisers grew its stake in Five9 by 60.1% in the 4th quarter. Cetera Investment Advisers now owns 13,407 shares of the software maker's stock valued at $545,000 after buying an additional 5,032 shares during the last quarter. 96.64% of the stock is currently owned by institutional investors and hedge funds.

Five9 Company Profile

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.