Five9 (NASDAQ:FIVN) Trading Down 5.6% – Should You Sell?

Five9, Inc. (NASDAQ:FIVN) dropped 5.6% on Wednesday . The stock traded as low as $23.25 and last traded at $23.81. 258,085 shares changed hands during trading, a decline of 91% from the average session volume of 2,738,548 shares. The stock had previously closed at $25.23.

Analysts Set New Price Targets

Several analysts have recently issued reports on the company. DA Davidson upped their price target on Five9 from $19.00 to $22.00 and gave the stock a “neutral” rating in a research note on Friday, May 1st. Rosenblatt Securities reissued a “buy” rating and issued a $29.00 price objective on shares of Five9 in a research note on Wednesday, June 24th. Jefferies Financial Group reissued a “hold” rating on shares of Five9 in a research note on Friday, May 1st. Needham & Company LLC restated a “buy” rating and issued a $40.00 target price on shares of Five9 in a report on Friday, May 1st. Finally, Weiss Ratings raised Five9 from a “sell (d)” rating to a “sell (d+)” rating in a research report on Tuesday, May 19th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Five9 has a consensus rating of “Moderate Buy” and a consensus target price of $25.93.

Five9 Stock Down 8.0%

The stock has a market cap of $1.78 billion, a P/E ratio of 35.11, a P/E/G ratio of 1.14 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. The firm’s fifty day moving average is $22.65 and its 200 day moving average is $19.17.

Five9 (NASDAQ:FIVN) last released its quarterly earnings results on Thursday, April 30th. The software maker reported $0.76 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.69 by $0.07. The company had revenue of $305.32 million during the quarter, compared to analysts’ expectations of $299.92 million. Five9 had a net margin of 4.87% and a return on equity of 12.66%. The business’s quarterly revenue was up 9.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.62 earnings per share. 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, equities research analysts forecast that Five9, Inc. will post 1.39 EPS for the current year.

Insider Buying and Selling at Five9

In related news, insider Tiffany N. Meriweather sold 21,320 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $20.98, for a total transaction of $447,293.60. Following the completion of the sale, the insider owned 281,298 shares in the company, valued at $5,901,632.04. This represents a 7.05% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Bryan M. Lee sold 16,620 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $24.81, for a total value of $412,342.20. Following the sale, the chief financial officer owned 311,462 shares of the company’s stock, valued at approximately $7,727,372.22. The trade was a 5.07% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders have sold 85,820 shares of company stock worth $2,014,057 in the last ninety days. 1.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Five9

Several hedge funds have recently modified their holdings of the business. EverSource Wealth Advisors LLC grew its stake in shares of Five9 by 378.7% in the first quarter. EverSource Wealth Advisors LLC now owns 1,728 shares of the software maker’s stock worth $26,000 after acquiring an additional 1,367 shares during the last quarter. Quarry LP acquired a new position in Five9 during the 3rd quarter valued at $33,000. Optiver Holding B.V. raised its stake in Five9 by 575.9% during the 1st quarter. Optiver Holding B.V. now owns 2,325 shares of the software maker’s stock valued at $35,000 after purchasing an additional 1,981 shares during the last quarter. Rothschild Investment LLC boosted its holdings in Five9 by 3,572.0% in the 4th quarter. Rothschild Investment LLC now owns 1,836 shares of the software maker’s stock valued at $37,000 after purchasing an additional 1,786 shares during the period. Finally, NewEdge Advisors LLC bought a new stake in Five9 in the 1st quarter valued at $38,000. 96.64% of the stock is owned by institutional investors.

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.