Stock Traders Buy Large Volume of Call Options on Five9 (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 recipient of unusually large options trading on Tuesday. Stock traders purchased 8,504 call options on the company. This is an increase of approximately 2,115% compared to the typical daily volume of 384 call options.

Insider Activity

In other Five9 news, CAO Leena Mansharamani sold 2,938 shares of the company's stock in a transaction that occurred on Wednesday, June 4th. The stock was sold at an average price of $27.83, for a total transaction of $81,764.54. Following the completion of the sale, the chief accounting officer directly owned 44,901 shares of the company's stock, valued at $1,249,594.83. This represents a 6.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, President Andy Dignan sold 4,845 shares of Five9 stock in a transaction that occurred on Wednesday, June 4th. The shares were sold at an average price of $28.18, for a total value of $136,532.10. Following the completion of the transaction, the president owned 227,839 shares in the company, valued at $6,420,503.02. This trade represents a 2.08% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 32,866 shares of company stock valued at $913,042. Insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Five9

Institutional investors and hedge funds have recently bought and sold shares of the stock. Xponance Inc. raised its holdings in shares of Five9 by 4.4% in the first quarter. Xponance Inc. now owns 9,835 shares of the software maker's stock worth $267,000 after acquiring an additional 414 shares during the last quarter. State of Wyoming increased its position in Five9 by 11.5% during the 1st quarter. State of Wyoming now owns 5,260 shares of the software maker's stock worth $143,000 after purchasing an additional 543 shares in the last quarter. Harbor Capital Advisors Inc. increased its position in Five9 by 3.2% during the 2nd quarter. Harbor Capital Advisors Inc. now owns 18,685 shares of the software maker's stock worth $495,000 after purchasing an additional 583 shares in the last quarter. Treasurer of the State of North Carolina raised its stake in Five9 by 1.8% in the 4th quarter. Treasurer of the State of North Carolina now owns 32,607 shares of the software maker's stock valued at $1,325,000 after purchasing an additional 590 shares during the last quarter. Finally, Wells Fargo & Company MN lifted its holdings in Five9 by 3.6% in the 4th quarter. Wells Fargo & Company MN now owns 24,779 shares of the software maker's stock valued at $1,007,000 after purchasing an additional 852 shares in the last quarter. Hedge funds and other institutional investors own 96.64% of the company's stock.

Five9 Price Performance

Five9 stock opened at $28.38 on Wednesday. The firm has a market capitalization of $2.16 billion, a PE ratio of -315.30, a P/E/G ratio of 2.78 and a beta of 1.19. Five9 has a 52 week low of $21.04 and a 52 week high of $49.90. The firm's 50-day simple moving average is $27.45 and its 200 day simple moving average is $30.25. The company has a quick ratio of 2.02, a current ratio of 2.02 and a debt-to-equity ratio of 1.12.

Five9 (NASDAQ:FIVN - Get Free Report) last announced its earnings results on Thursday, May 1st. The software maker reported $0.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.48 by $0.14. The company had revenue of $279.71 million during the quarter, compared to analysts' expectations of $272.26 million. Five9 had a negative net margin of 0.48% and a positive return on equity of 6.06%. The firm's quarterly revenue was up 13.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.48 earnings per share. On average, equities research analysts predict that Five9 will post 0.28 EPS for the current fiscal year.

Analysts Set New Price Targets

FIVN has been the subject of a number of analyst reports. Mizuho cut their price objective on shares of Five9 from $55.00 to $42.00 and set an "outperform" rating for the company in a research report on Tuesday, April 15th. KeyCorp assumed coverage on shares of Five9 in a research note on Friday, June 6th. They set an "overweight" rating and a $35.00 price target on the stock. Piper Sandler reduced their price objective 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. Barclays lowered their price objective on Five9 from $60.00 to $33.00 and set an "overweight" rating on the stock in a report on Monday, May 5th. Finally, Needham & Company LLC cut their target price on Five9 from $52.00 to $40.00 and set a "buy" rating for the company in a research note on Friday, May 2nd. Seven investment analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $42.05.

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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