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

Five9, Inc. (NASDAQ:FIVN) saw unusually large options trading activity on Tuesday. Stock traders acquired 8,504 call options on the stock. This represents an increase of 2,115% compared to the average volume of 384 call options.

Wall Street Analyst Weigh In

A number of brokerages recently commented on FIVN. Piper Sandler lowered shares of Five9 from an “overweight” rating to a “neutral” rating and decreased their price target for the company from $26.00 to $21.00 in a research note on Monday, January 5th. DA Davidson set a $24.00 price objective on shares of Five9 in a research report on Thursday, December 18th. Morgan Stanley decreased their price target on Five9 from $30.00 to $26.00 and set an “equal weight” rating on the stock in a research note on Thursday, January 15th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Five9 in a research report on Monday, December 29th. Finally, Cantor Fitzgerald lowered their target price on Five9 from $36.00 to $32.00 and set an “overweight” rating for the company in a report on Friday, November 7th. Twelve research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $32.07.

Five9 Price Performance

Five9 stock opened at $16.59 on Thursday. The stock has a market capitalization of $1.30 billion, a price-to-earnings ratio of 46.08, a PEG ratio of 0.90 and a beta of 1.32. Five9 has a 52-week low of $15.70 and a 52-week high of $49.90. 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 moving average price is $19.22 and its two-hundred day moving average price is $22.17.

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

Insider Buying and Selling

In related news, CAO Leena Mansharamani sold 2,951 shares of the firm’s stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $20.41, for a total value of $60,229.91. Following the completion of the sale, the chief accounting officer directly owned 38,571 shares in the company, valued at approximately $787,234.11. This trade represents a 7.11% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Bryan M. Lee sold 13,219 shares of the business’s stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $20.35, for a total value of $269,006.65. Following the transaction, the chief financial officer directly owned 224,269 shares in the company, valued at approximately $4,563,874.15. This trade represents a 5.57% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 65,339 shares of company stock worth $1,330,186 in the last 90 days. 1.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Five9

Several institutional investors have recently made changes to their positions in FIVN. Global Retirement Partners LLC grew its stake in shares of Five9 by 81.7% in the 3rd quarter. Global Retirement Partners LLC now owns 1,228 shares of the software maker’s stock valued at $30,000 after buying an additional 552 shares during the period. Nisa Investment Advisors LLC acquired a new stake in Five9 in the second quarter valued at approximately $32,000. Quarry LP bought a new stake in shares of Five9 during the third quarter valued at approximately $33,000. Rothschild Investment LLC increased its holdings in shares of Five9 by 3,572.0% during the fourth quarter. Rothschild Investment LLC now owns 1,836 shares of the software maker’s stock valued at $37,000 after acquiring an additional 1,786 shares in the last quarter. Finally, Advisory Services Network LLC acquired a new position in shares of Five9 during the third quarter worth approximately $38,000. Institutional investors and hedge funds own 96.64% of the company’s stock.

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.