Five9 (NASDAQ:FIVN) Shares Gap Down – Should You Sell?

Five9, Inc. (NASDAQ:FIVN)’s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $25.81, but opened at $24.38. Five9 shares last traded at $24.9730, with a volume of 280,270 shares changing hands.

Analyst Ratings Changes

FIVN has been the subject of several recent analyst reports. Truist Financial set a $23.00 target price on shares of Five9 in a research report on Wednesday, July 1st. Weiss Ratings raised Five9 from a “sell (d)” rating to a “sell (d+)” rating in a report on Tuesday, May 19th. UBS Group boosted their price objective on Five9 from $22.00 to $25.00 and gave the stock a “buy” rating in a research report on Friday, May 1st. Zacks Research raised Five9 from a “hold” rating to a “strong-buy” rating in a report on Wednesday, July 1st. Finally, Piper Sandler restated a “neutral” rating and issued a $24.00 target price (up from $21.00) on shares of Five9 in a research report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $25.93.

Five9 Stock Down 1.9%

The stock’s 50-day moving average is $22.27 and its 200-day moving average is $18.94. The stock has a market cap of $1.94 billion, a P/E ratio of 38.37, a price-to-earnings-growth ratio of 1.12 and a beta of 1.46. The company has a current ratio of 4.51, a quick ratio of 4.51 and a debt-to-equity ratio of 0.89.

Five9 (NASDAQ:FIVN) last released its quarterly earnings results on Thursday, April 30th. The software maker reported $0.76 EPS for the quarter, topping analysts’ consensus estimates of $0.69 by $0.07. Five9 had a net margin of 4.87% and a return on equity of 12.66%. The company had revenue of $305.32 million for the quarter, compared to the consensus estimate of $299.92 million. During the same period in the previous year, the firm earned $0.62 EPS. Five9’s revenue was up 9.2% on a year-over-year basis. Five9 has set its FY 2026 guidance at 3.220-3.300 EPS and its Q2 2026 guidance at 0.650-0.690 EPS. As a group, research analysts anticipate that Five9, Inc. will post 1.39 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Bryan M. Lee sold 1,511 shares of the business’s stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $24.25, for a total transaction of $36,641.75. Following the sale, the chief financial officer owned 309,951 shares of the company’s stock, valued at $7,516,311.75. The trade was a 0.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Matthew E. Tuckness sold 8,645 shares of Five9 stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $24.81, for a total value of $214,482.45. Following the transaction, the executive owned 281,492 shares in the company, valued at approximately $6,983,816.52. This trade represents a 2.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 85,820 shares of company stock valued at $2,014,057 over the last 90 days. Corporate insiders own 1.20% of the company’s stock.

Institutional Investors Weigh In On Five9

Hedge funds and other institutional investors have recently bought and sold shares of the business. Tactive Advisors LLC acquired a new stake in Five9 in the 2nd quarter valued at about $232,000. Pacer Advisors Inc. boosted its position in shares of Five9 by 71.0% during the 1st quarter. Pacer Advisors Inc. now owns 403,644 shares of the software maker’s stock valued at $6,123,000 after purchasing an additional 167,574 shares in the last quarter. Militia Capital Management LLC acquired a new position in shares of Five9 in the 1st quarter worth approximately $2,123,000. NewEdge Advisors LLC bought a new stake in shares of Five9 in the 1st quarter worth approximately $38,000. Finally, Optiver Holding B.V. raised its holdings in shares of Five9 by 575.9% in the 1st quarter. Optiver Holding B.V. now owns 2,325 shares of the software maker’s stock worth $35,000 after purchasing an additional 1,981 shares in the last quarter. 96.64% of the stock is currently owned by institutional investors.

Five9 Company Profile

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.