Stock Traders Purchase High Volume of Call Options on Five9 (NASDAQ:FIVN)

Key Points

• Five9 saw a dramatic rise in call options trading, with stock traders purchasing 8,504 call options, marking a 2,115% increase from typical daily volumes.
• CEO Michael Burkland and CAO Leena Mansharamani sold shares of Five9, reducing their ownership stakes by 3.12% and 6.14% respectively.
• Institutional investors have increased their holdings in Five9, with significant stakes raised by Sylebra Capital and Voss Capital, among others, indicating strong institutional interest in the stock.

Five9, Inc. (NASDAQ:FIVN - Get Free Report) was the recipient of some unusual options trading on Tuesday. Stock traders bought 8,504 call options on the company. Thisrepresentsanincreaseof2,115% compared to the typical daily volume of 384 call options.

Insider Transactions at Five9

In related news, CEO Michael Burkland sold 12,594 shares of the company's stock in a transaction that occurred on Tuesday, June 3rd. The stock was sold at an average price of $27.17, for a total value of $342,178.98. Following the transaction, the chief executive officer directly owned 391,462 shares in the company, valued at approximately $10,636,022.54. This represents a 3.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CAO Leena Mansharamani sold 2,938 shares of the stock in a transaction dated Wednesday, June 4th. The stock was sold at an average price of $27.83, for a total transaction of $81,764.54. Following the transaction, the chief accounting officer directly owned 44,901 shares of the company's stock, valued at approximately $1,249,594.83. This trade represents a 6.14% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 40,609 shares of company stock valued at $1,113,133 in the last ninety days. 1.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Five9

Several institutional investors have recently made changes to their positions in the stock. Sylebra Capital LLC raised its stake in shares of Five9 by 59.4% during the 4th quarter. Sylebra Capital LLC now owns 3,745,778 shares of the software maker's stock worth $152,228,000 after buying an additional 1,396,496 shares during the last quarter. Voss Capital LP raised its stake in shares of Five9 by 211.4% during the 2nd quarter. Voss Capital LP now owns 3,250,000 shares of the software maker's stock worth $86,060,000 after buying an additional 2,206,173 shares during the last quarter. Ameriprise Financial Inc. raised its stake in shares of Five9 by 14.8% during the 1st quarter. Ameriprise Financial Inc. now owns 2,749,505 shares of the software maker's stock worth $74,649,000 after buying an additional 353,939 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Five9 by 292.4% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,679,356 shares of the software maker's stock worth $72,745,000 after buying an additional 1,996,628 shares during the last quarter. Finally, Van Berkom & Associates Inc. raised its stake in shares of Five9 by 14.2% during the 1st quarter. Van Berkom & Associates Inc. now owns 2,140,763 shares of the software maker's stock worth $58,122,000 after buying an additional 266,484 shares during the last quarter. 96.64% of the stock is currently owned by hedge funds and other institutional investors.

Five9 Stock Performance

NASDAQ:FIVN opened at $25.99 on Wednesday. The firm's fifty day moving average price is $26.70 and its 200 day moving average price is $28.30. Five9 has a 1-year low of $21.04 and a 1-year high of $49.90. The company has a debt-to-equity ratio of 1.04, a current ratio of 4.44 and a quick ratio of 4.44. The firm has a market cap of $2.01 billion, a price-to-earnings ratio of 288.81, a price-to-earnings-growth ratio of 2.52 and a beta of 1.17.

Five9 (NASDAQ:FIVN - Get Free Report) last posted its quarterly earnings data 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 firm had revenue of $283.27 million for the quarter, compared to analyst estimates of $275.18 million. Five9 had a net margin of 0.80% and a return on equity of 8.91%. Five9's quarterly revenue was up 12.4% on a year-over-year basis. During the same period last year, the firm posted $0.52 EPS. Five9 has set its Q3 2025 guidance at 0.720-0.740 EPS. FY 2025 guidance at 2.860-2.900 EPS. On average, sell-side analysts expect that Five9 will post 0.28 EPS for the current year.

Analyst Upgrades and Downgrades

Several research firms have recently commented on FIVN. Canaccord Genuity Group reissued a "buy" rating and issued a $40.00 price objective on shares of Five9 in a research note on Friday, August 1st. Wall Street Zen raised shares of Five9 from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 2nd. Barclays lowered their price objective on shares of Five9 from $60.00 to $33.00 and set an "overweight" rating for the company in a research note on Monday, May 5th. Needham & Company LLC lowered their price objective on shares of Five9 from $52.00 to $40.00 and set a "buy" rating for the company in a research note on Friday, May 2nd. Finally, Rosenblatt Securities reissued a "buy" rating and set a $36.00 price objective on shares of Five9 in a report on Friday, August 1st. Thirteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $37.59.

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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