Five9 (NASDAQ:FIVN) Lowered to Hold Rating by Zacks Research

Five9 (NASDAQ:FIVN) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Tuesday,Zacks.com reports.

Other equities research analysts have also recently issued reports about the stock. HSBC raised shares of Five9 to a “buy” rating in a research report on Thursday, December 18th. Morgan Stanley reduced their target price on Five9 from $30.00 to $26.00 and set an “equal weight” rating for the company in a report on Thursday, January 15th. Needham & Company LLC reissued a “buy” rating and issued a $40.00 target price on shares of Five9 in a research report on Thursday, December 18th. DA Davidson set a $24.00 price target on Five9 in a research note on Thursday, December 18th. Finally, Barclays reduced their price objective on Five9 from $29.00 to $25.00 and set an “overweight” rating for the company in a research note on Monday, January 12th. Twelve equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $32.07.

Five9 Stock Performance

Shares of Five9 stock opened at $17.10 on Tuesday. The company has a quick ratio of 4.61, a current ratio of 4.61 and a debt-to-equity ratio of 0.96. Five9 has a 52 week low of $16.10 and a 52 week high of $49.90. The firm’s 50 day moving average is $19.51 and its two-hundred day moving average is $22.58. The firm has a market capitalization of $1.34 billion, a P/E ratio of 47.50, a P/E/G ratio of 0.84 and a beta of 1.32.

Five9 (NASDAQ:FIVN) last issued its 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. The business 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 company’s revenue for the quarter was up 8.2% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.67 EPS. Research analysts forecast that Five9 will post 0.28 EPS for the current fiscal year.

Five9 declared that its Board of Directors has initiated a stock buyback plan 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 plans are generally a sign that the company’s leadership believes its stock is undervalued.

Insider Activity at Five9

In other Five9 news, CEO Michael Burkland sold 17,992 shares of the stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $20.35, for a total transaction of $366,137.20. Following the completion of the sale, the chief executive officer directly owned 349,570 shares of the company’s stock, valued at approximately $7,113,749.50. This trade represents a 4.89% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Tiffany N. Meriweather sold 6,852 shares of the business’s 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 $139,438.20. Following the completion of the transaction, the insider directly owned 212,126 shares in the company, valued at approximately $4,316,764.10. The trade was a 3.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 65,339 shares of company stock worth $1,330,186 in the last ninety days. Company insiders own 1.60% of the company’s stock.

Hedge Funds Weigh In On Five9

Several institutional investors have recently bought and sold shares of the company. 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 in the last quarter. Norges Bank acquired a new position in Five9 during the second quarter worth $39,056,000. Federated Hermes Inc. raised its position in Five9 by 124,372.3% in the second quarter. Federated Hermes Inc. now owns 830,230 shares of the software maker’s stock worth $21,984,000 after acquiring an additional 829,563 shares in the last quarter. Van Berkom & Associates Inc. raised its position in Five9 by 28.0% in the fourth quarter. Van Berkom & Associates Inc. now owns 3,596,380 shares of the software maker’s stock worth $72,107,000 after acquiring an additional 787,626 shares in the last quarter. Finally, 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 valued at $37,129,000 after acquiring an additional 761,486 shares during the period. 96.64% of the stock is owned by institutional investors and hedge funds.

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.