Five9 (NASDAQ:FIVN) to Buyback $50.00 million in Outstanding Stock

Five9 (NASDAQ:FIVN) announced that its Board of Directors has initiated a stock buyback plan on Tuesday, November 11th, RTT News reports. The company plans to repurchase $50.00 million in shares. This repurchase authorization authorizes the software maker to repurchase up to 3.2% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s leadership believes its shares are undervalued.

Five9 Price Performance

Shares of FIVN opened at $20.47 on Friday. The firm has a 50-day simple moving average of $23.64 and a two-hundred day simple moving average of $25.72. The stock has a market cap of $1.60 billion, a PE ratio of 227.47, a P/E/G ratio of 2.20 and a beta of 1.27. Five9 has a 1-year low of $17.97 and a 1-year high of $49.90. The company has a debt-to-equity ratio of 1.04, a current ratio of 4.44 and a quick ratio of 4.44.

Five9 (NASDAQ:FIVN) last posted its quarterly earnings data on Friday, August 22nd. The software maker reported $0.76 earnings per share for the quarter. Five9 had a net margin of 0.80% and a return on equity of 8.91%. The firm had revenue of $283.27 million during the quarter. As a group, analysts forecast that Five9 will post 0.28 EPS for the current year.

Analysts Set New Price Targets

Several research analysts have recently weighed in on FIVN shares. Wall Street Zen raised shares of Five9 from a “buy” rating to a “strong-buy” rating in a research report on Saturday, August 2nd. Wells Fargo & Company cut their price objective on shares of Five9 from $28.00 to $22.00 and set an “equal weight” rating for the company in a research report on Friday, November 7th. DA Davidson reiterated a “neutral” rating and issued a $28.00 target price on shares of Five9 in a report on Friday, September 12th. Rosenblatt Securities reissued a “buy” rating and issued a $36.00 price target on shares of Five9 in a research note on Friday, August 1st. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Five9 in a research report on Wednesday, October 8th. Thirteen analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $35.19.

Insider Buying and Selling at Five9

In related news, CEO Michael Burkland sold 18,425 shares of the firm’s stock in a transaction dated Thursday, September 4th. The stock was sold at an average price of $25.72, for a total transaction of $473,891.00. Following the completion of the transaction, the chief executive officer directly owned 367,562 shares in the company, valued at $9,453,694.64. This trade represents a 4.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, President Andy Dignan sold 7,614 shares of Five9 stock in a transaction dated Thursday, September 4th. The shares were sold at an average price of $25.48, for a total value of $194,004.72. Following the completion of the transaction, the president directly owned 218,125 shares of the company’s stock, valued at approximately $5,557,825. This represents a 3.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 53,738 shares of company stock valued at $1,380,677. Corporate insiders own 1.60% of the company’s stock.

About Five9

Five9, Inc, together with its subsidiaries, provides intelligent cloud software for contact centers in the United States, India, and internationally. It offers a virtual contact center cloud platform that delivers a suite of applications, which enables the breadth of contact center-related customer service, sales, and marketing functions.