Five9 (NASDAQ:FIVN) Stock Price Down 5.5% – Here’s Why

Five9, Inc. (NASDAQ:FIVN)’s stock price dropped 5.5% during trading on Tuesday . The stock traded as low as $16.75 and last traded at $17.0560. Approximately 474,363 shares were traded during trading, a decline of 82% from the average daily volume of 2,624,753 shares. The stock had previously closed at $18.04.

Wall Street Analysts Forecast Growth

FIVN has been the subject of a number of analyst reports. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Five9 in a research note on Monday, December 29th. Mizuho dropped their price target on Five9 from $35.00 to $28.00 and set an “outperform” rating on the stock in a research report on Friday, February 20th. Piper Sandler lowered Five9 from an “overweight” rating to a “neutral” rating and reduced their price objective for the company from $26.00 to $21.00 in a research report on Monday, January 5th. Wall Street Zen upgraded Five9 from a “buy” rating to a “strong-buy” rating in a research note on Monday, February 23rd. Finally, UBS Group dropped their target price on Five9 from $30.00 to $22.00 and set a “buy” rating on the stock in a report on Friday, February 20th. Thirteen research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $27.12.

Five9 Trading Down 5.0%

The stock’s fifty day moving average price is $18.10 and its 200 day moving average price is $21.10. The company has a quick ratio of 4.51, a current ratio of 4.51 and a debt-to-equity ratio of 0.94. The stock has a market cap of $1.31 billion, a PE ratio of 37.32, a PEG ratio of 0.88 and a beta of 1.29.

Five9 (NASDAQ:FIVN) last announced its quarterly earnings results on Thursday, February 19th. The software maker reported $0.80 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.01. The company had revenue of $300.28 million during the quarter, compared to the consensus estimate of $298.21 million. Five9 had a net margin of 3.43% and a return on equity of 10.95%. The firm’s quarterly revenue was up 7.8% compared to the same quarter last year. During the same quarter last year, the firm earned $0.79 earnings per share. Five9 has set its Q1 2026 guidance at 0.100-0.170 EPS and its FY 2026 guidance at 0.860-0.950 EPS. On average, sell-side analysts forecast that Five9, Inc. will post 0.28 EPS for the current year.

Five9 announced that its board has approved a share buyback program on Tuesday, November 11th that allows the company to repurchase $50.00 million in shares. This repurchase authorization allows the software maker to buy up to 3.2% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Institutional Investors Weigh In On Five9

Several institutional investors have recently modified their holdings of FIVN. Global Retirement Partners LLC raised its position in Five9 by 81.7% in the 3rd quarter. Global Retirement Partners LLC now owns 1,228 shares of the software maker’s stock worth $30,000 after buying an additional 552 shares during the last quarter. Quarry LP purchased a new stake in shares of Five9 during the 3rd quarter valued at about $33,000. Advisory Services Network LLC bought a new stake in shares of Five9 in the third quarter worth approximately $38,000. Nisa Investment Advisors LLC grew its stake in shares of Five9 by 36.4% in the third quarter. Nisa Investment Advisors LLC now owns 1,630 shares of the software maker’s stock worth $39,000 after acquiring an additional 435 shares during the period. Finally, Rothschild Investment LLC raised 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 purchasing an additional 1,786 shares during the last quarter. 96.64% of the stock is owned by hedge funds and other 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.