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

Shares of Five9, Inc. (NASDAQ:FIVN) reached a new 52-week low during mid-day trading on Friday after Morgan Stanley lowered their price target on the stock from $30.00 to $26.00. Morgan Stanley currently has an equal weight rating on the stock. Five9 traded as low as $17.67 and last traded at $17.6050, with a volume of 1732996 shares. The stock had previously closed at $19.01.

A number of other research analysts have also recently commented on the company. Wall Street Zen cut Five9 from a “strong-buy” rating to a “buy” rating in a research note on Saturday, December 20th. Needham & Company LLC reissued a “buy” rating and set a $40.00 price objective on shares of Five9 in a research report on Thursday, December 18th. Cantor Fitzgerald reduced their target price on shares of Five9 from $36.00 to $32.00 and set an “overweight” rating on the stock in a research report on Friday, November 7th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Five9 in a research note on Monday, December 29th. Finally, Zacks Research raised shares of Five9 from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 5th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Five9 has an average rating of “Moderate Buy” and a consensus price target of $32.07.

Insider Buying and Selling

In related news, CEO Michael Burkland sold 17,992 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 transaction of $366,137.20. Following the completion of the sale, the chief executive officer directly owned 349,570 shares in the company, valued at approximately $7,113,749.50. The trade was a 4.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, President Andy Dignan sold 7,512 shares of the company’s stock in a transaction that occurred on 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 directly 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 66,039 shares of company stock valued at $1,347,231 in the last 90 days. Insiders own 1.60% of the company’s stock.

Hedge Funds Weigh In On Five9

Institutional investors and hedge funds have recently bought and sold shares of the stock. Voss Capital LP raised its stake in shares of Five9 by 211.4% in the second 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 during the period. Norges Bank purchased a new position in Five9 during the second quarter valued at approximately $39,056,000. Federated Hermes Inc. boosted its position in shares of 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 purchasing an additional 829,563 shares during the period. Anson Funds Management LP boosted its position in shares of 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 purchasing an additional 761,486 shares during the period. Finally, Assenagon Asset Management S.A. increased its stake in shares of Five9 by 238.8% in the third quarter. Assenagon Asset Management S.A. now owns 724,604 shares of the software maker’s stock worth $17,535,000 after purchasing an additional 510,714 shares in the last quarter. 96.64% of the stock is currently owned by hedge funds and other institutional investors.

Five9 Stock Down 7.5%

The company’s 50-day moving average price is $19.93 and its 200 day moving average price is $23.42. 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 has a market capitalization of $1.38 billion, a P/E ratio of 48.86, a P/E/G ratio of 0.89 and a beta of 1.32.

Five9 (NASDAQ:FIVN) last announced 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 company had revenue of $285.83 million for the quarter, compared to analyst estimates of $285.15 million. Five9 had a return on equity of 10.59% and a net margin of 2.77%.The firm’s quarterly revenue was up 8.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.67 EPS. Five9 has set its Q4 2025 guidance at 0.760-0.80 EPS. As a group, equities analysts expect that Five9, Inc. will post 0.28 earnings per share for the current year.

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

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.