Five9 (NASDAQ:FIVN) Downgraded by Zacks Research to “Hold”

Zacks Research cut shares of Five9 (NASDAQ:FIVN) from a strong-buy rating to a hold rating in a report released on Tuesday morning,Zacks.com reports.

A number of other research analysts also recently weighed in on FIVN. Weiss Ratings reiterated a “sell (d+)” rating on shares of Five9 in a report on Monday, December 29th. HSBC upgraded Five9 to a “buy” rating in a research report on Thursday, December 18th. Needham & Company LLC reiterated a “buy” rating and issued a $40.00 price objective on shares of Five9 in a report on Thursday, December 18th. Barclays dropped their target price on shares of Five9 from $29.00 to $25.00 and set an “overweight” rating on the stock in a report on Monday, January 12th. Finally, Piper Sandler downgraded shares of Five9 from an “overweight” rating to a “neutral” rating and reduced their target price for the stock from $26.00 to $21.00 in a research report on Monday, January 5th. Twelve equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $32.07.

Five9 Trading Up 2.3%

NASDAQ:FIVN opened at $17.10 on Tuesday. The company has a 50-day moving average price of $19.51 and a 200-day moving average price of $22.58. The stock has a market cap of $1.34 billion, a price-to-earnings ratio of 47.50, a P/E/G ratio of 0.84 and a beta of 1.32. The company has a current ratio of 4.61, a quick ratio of 4.61 and a debt-to-equity ratio of 0.96. Five9 has a 12 month low of $16.10 and a 12 month high of $49.90.

Five9 (NASDAQ:FIVN) last announced its quarterly earnings results 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. Five9 had a net margin of 2.77% and a return on equity of 10.59%. The company had revenue of $285.83 million for the quarter, compared to analysts’ expectations of $285.15 million. During the same quarter in the previous year, the company earned $0.67 earnings per share. Five9’s quarterly revenue was up 8.2% on a year-over-year basis. Equities analysts predict that Five9 will post 0.28 EPS for the current year.

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

Insider Buying and Selling

In related news, EVP Panos Kozanian sold 10,858 shares of the stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $20.42, for a total transaction of $221,720.36. Following the sale, the executive vice president directly owned 94,457 shares of the company’s stock, valued at approximately $1,928,811.94. This represents a 10.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, President Andy Dignan sold 7,512 shares of the firm’s stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $20.28, for a total transaction of $152,343.36. Following the sale, the president owned 208,513 shares of the company’s stock, valued at approximately $4,228,643.64. This represents a 3.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 65,339 shares of company stock worth $1,330,186 over the last quarter. 1.60% of the stock is owned by insiders.

Hedge Funds Weigh In On Five9

A number of hedge funds have recently added to or reduced their stakes in FIVN. Nisa Investment Advisors LLC purchased a new stake in Five9 during the 2nd quarter valued at $32,000. Global Retirement Partners LLC lifted its holdings in shares of Five9 by 81.7% during the third quarter. Global Retirement Partners LLC now owns 1,228 shares of the software maker’s stock valued at $30,000 after purchasing an additional 552 shares in the last quarter. Quarry LP purchased a new stake in shares of Five9 during the third quarter valued at $33,000. Advisory Services Network LLC purchased a new stake in shares of Five9 during the third quarter valued at $38,000. Finally, Pilgrim Partners Asia Pte Ltd bought a new stake in Five9 in the 3rd quarter worth about $45,000. 96.64% of the stock is currently owned by hedge funds and other 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.