Five9 (NASDAQ:FIVN) Trading Down 5.4% – Should You Sell?

Five9, Inc. (NASDAQ:FIVN) shares dropped 5.4% during trading on Friday . The company traded as low as $19.04 and last traded at $18.9650. Approximately 177,865 shares changed hands during trading, a decline of 88% from the average daily volume of 1,527,901 shares. The stock had previously closed at $20.05.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the stock. Zacks Research downgraded shares of Five9 from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 7th. Wells Fargo & Company reduced their price objective on Five9 from $28.00 to $22.00 and set an “equal weight” rating for the company in a report on Friday, November 7th. Weiss Ratings restated a “sell (d+)” rating on shares of Five9 in a research note on Monday. Needham & Company LLC reaffirmed a “buy” rating and set a $40.00 price target on shares of Five9 in a research report on Thursday, December 18th. Finally, HSBC raised Five9 to a “buy” rating in a report on Thursday, December 18th. Thirteen investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Five9 presently has an average rating of “Moderate Buy” and an average target price of $32.93.

Five9 Trading Down 4.7%

The company has a debt-to-equity ratio of 0.96, a quick ratio of 4.61 and a current ratio of 4.61. The stock’s 50 day simple moving average is $20.77 and its 200 day simple moving average is $24.04. The firm has a market cap of $1.49 billion, a PE ratio of 53.07, a PEG ratio of 1.24 and a beta of 1.32.

Five9 (NASDAQ:FIVN) last announced its quarterly earnings data on Friday, August 22nd. The software maker reported $0.76 EPS for the quarter. Five9 had a return on equity of 10.59% and a net margin of 2.77%.The firm had revenue of $283.27 million for the quarter. On average, sell-side analysts forecast that Five9, Inc. will post 0.28 earnings per share for the current fiscal year.

Five9 declared that its board has approved a stock buyback program on Tuesday, November 11th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the software maker to buy up to 3.2% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

Insider Activity at Five9

In other Five9 news, CRO Matthew E. Tuckness sold 5,255 shares of the stock in a transaction on Thursday, December 4th. The shares were sold at an average price of $20.35, for a total transaction of $106,939.25. Following the completion of the sale, the executive owned 176,379 shares of the company’s stock, valued at $3,589,312.65. This represents a 2.89% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Michael Burkland sold 17,992 shares of the business’s stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $20.35, for a total transaction of $366,137.20. Following the completion of the transaction, the chief executive officer owned 349,570 shares in the company, valued at $7,113,749.50. The trade was a 4.89% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 66,039 shares of company stock worth $1,347,231 over the last three months. Corporate insiders own 1.60% of the company’s stock.

Institutional Investors Weigh In On Five9

Large investors have recently made changes to their positions in the business. Voss Capital LP lifted its stake in Five9 by 40.0% in the third quarter. Voss Capital LP now owns 4,550,000 shares of the software maker’s stock worth $110,110,000 after acquiring an additional 1,300,000 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted 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 valued at $72,745,000 after purchasing an additional 1,996,628 shares in the last quarter. Geode Capital Management LLC raised its stake in Five9 by 36.4% in the second quarter. Geode Capital Management LLC now owns 1,863,081 shares of the software maker’s stock worth $49,341,000 after buying an additional 497,344 shares in the last quarter. Anson Funds Management LP lifted its holdings in Five9 by 98.5% in the third quarter. Anson Funds Management LP now owns 1,534,272 shares of the software maker’s stock worth $37,129,000 after buying an additional 761,486 shares during the period. Finally, Ameriprise Financial Inc. boosted its position in Five9 by 2.4% during the 3rd quarter. Ameriprise Financial Inc. now owns 1,515,813 shares of the software maker’s stock valued at $36,683,000 after acquiring an additional 35,946 shares in the last quarter. 96.64% of the stock is currently owned by institutional investors.

About Five9

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.