Five9 (NASDAQ:FIVN) Sets New 52-Week Low on Analyst Downgrade

Shares of Five9, Inc. (NASDAQ:FIVN) reached a new 52-week low on Tuesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $16.66 and last traded at $16.56, with a volume of 1467145 shares trading hands. The stock had previously closed at $17.98.

Several other analysts have also weighed in on FIVN. Wells Fargo & Company lowered their target price on Five9 from $28.00 to $22.00 and set an “equal weight” rating on the stock in a report on Friday, November 7th. Barclays decreased their price objective on shares of Five9 from $29.00 to $25.00 and set an “overweight” rating on the stock in a research report on Monday, January 12th. Needham & Company LLC restated a “buy” rating and set a $40.00 target price on shares of Five9 in a report on Thursday, December 18th. Weiss Ratings restated a “sell (d+)” rating on shares of Five9 in a research report on Monday, December 29th. Finally, Piper Sandler lowered shares of Five9 from an “overweight” rating to a “neutral” rating and lowered their price target for the company from $26.00 to $21.00 in a research report on Monday, January 5th. Twelve analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $32.07.

Insiders Place Their Bets

In other Five9 news, CFO Bryan M. Lee sold 13,219 shares of Five9 stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $20.35, for a total value of $269,006.65. Following the completion of the sale, the chief financial officer directly owned 224,269 shares of the company’s stock, valued at approximately $4,563,874.15. The trade was a 5.57% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Panos Kozanian sold 10,858 shares of the stock in a transaction on Thursday, December 4th. The stock was sold at an average price of $20.42, for a total value of $221,720.36. Following the transaction, the executive vice president directly owned 94,457 shares in the company, valued at approximately $1,928,811.94. This represents a 10.31% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 65,339 shares of company stock valued at $1,330,186. 1.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Five9

Several institutional investors have recently added to or reduced their stakes in the business. Amundi grew its holdings in Five9 by 8.3% in the 1st quarter. Amundi now owns 40,291 shares of the software maker’s stock valued at $1,017,000 after buying an additional 3,079 shares during the period. Mirae Asset Global Investments Co. Ltd. boosted its position in shares of Five9 by 10.3% in the second quarter. Mirae Asset Global Investments Co. Ltd. now owns 10,240 shares of the software maker’s stock worth $271,000 after acquiring an additional 953 shares during the last quarter. Gagnon Securities LLC boosted its position in shares of Five9 by 7.5% in the second quarter. Gagnon Securities LLC now owns 407,452 shares of the software maker’s stock worth $10,789,000 after acquiring an additional 28,393 shares during the last quarter. WCM Investment Management LLC grew its holdings in Five9 by 6.6% in the second quarter. WCM Investment Management LLC now owns 558,313 shares of the software maker’s stock valued at $14,929,000 after purchasing an additional 34,402 shares during the period. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in Five9 during the second quarter worth approximately $225,000. 96.64% of the stock is currently owned by institutional investors and hedge funds.

Five9 Stock Down 6.4%

The company has a debt-to-equity ratio of 0.96, a current ratio of 4.61 and a quick ratio of 4.61. The stock has a market cap of $1.25 billion, a price-to-earnings ratio of 44.47, a price-to-earnings-growth ratio of 0.86 and a beta of 1.32. The firm’s 50-day moving average is $19.44 and its 200 day moving average is $22.53.

Five9 (NASDAQ:FIVN) last announced its quarterly earnings data on Thursday, November 6th. The software maker reported $0.78 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.73 by $0.05. The company had revenue of $285.83 million during the quarter, compared to analysts’ expectations of $285.15 million. Five9 had a net margin of 2.77% and a return on equity of 10.59%. The business’s quarterly revenue was up 8.2% compared to the same quarter last year. During the same period in the previous year, the company earned $0.67 EPS. Sell-side analysts anticipate that Five9, Inc. will post 0.28 earnings per share for the current fiscal year.

Five9 announced that its Board of Directors has approved a stock buyback program on Tuesday, November 11th that permits the company to buyback $50.00 million in shares. This buyback authorization permits the software maker to repurchase up to 3.2% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Five9 Company Profile

Five9, Inc (NASDAQ: FIVN) is a leading provider of cloud-based contact center software designed to help organizations manage customer interactions across voice, email, chat, social media and other digital channels. Its platform offers features such as intelligent routing, analytics, workforce optimization and integrated customer relationship management (CRM) connectors. The company emphasizes AI-driven capabilities, including virtual agents and predictive dialing, to enhance both agent productivity and customer experience.

Founded in 2001 and headquartered in San Ramon, California, Five9 completed its initial public offering in February 2014.