Five9 (NASDAQ:FIVN) Shares Gap Down on Analyst Downgrade

Five9, Inc. (NASDAQ:FIVN) gapped down before the market opened on Friday after Evercore downgraded the stock from an outperform rating to an in-line rating. The stock had previously closed at $34.14, but opened at $26.75. Evercore now has a $24.00 price target on the stock. Five9 shares last traded at $27.77, with a volume of 1,347,283 shares.

Several other brokerages have also recently issued reports on FIVN. Barclays upped their price objective on Five9 from $34.00 to $40.00 and gave the company an “overweight” rating in a research note on Tuesday, October 13th. Canaccord Genuity Group increased their price objective on Five9 from $33.00 to $39.00 and gave the stock a “buy” rating in a research report on Monday, August 24th. FBN Securities started coverage on Five9 in a research note on Wednesday, September 16th. They issued an “outperform” rating and a $40.00 target price on the stock. Wells Fargo & Company boosted their target price on Five9 from $32.00 to $36.00 and gave the company an “equal weight” rating in a report on Wednesday, October 28th. Finally, Truist Financial boosted their target price on Five9 from $35.00 to $40.00 and gave the company a “buy” rating in a report on Monday, August 31st. Twelve research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Five9 presently has a consensus rating of “Moderate Buy” and a consensus target price of $35.00.

Insider Transactions at Five9

In related news, CFO Bryan Lee sold 1,310 shares of the company’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $32.60, for a total value of $42,706.00. Following the sale, the chief financial officer owned 289,333 shares in the company, valued at $9,432,255.80. This represents a 0.45% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 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, CAO Leena Mansharamani sold 1,253 shares of the firm’s stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $31.53, for a total value of $39,507.09. Following the completion of the transaction, the chief accounting officer directly owned 52,417 shares of the company’s stock, valued at $1,652,708.01. The trade was a 2.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 sold 83,831 shares of company stock worth $2,821,366 over the last quarter. Insiders own 1.20% of the company’s stock.

Key Headlines Impacting Five9

Here are the key news stories impacting Five9 this week:

• Positive Sentiment: Five9 reported third-quarter adjusted EPS of $0.82, above the $0.80 consensus, and revenue of $323.3 million, ahead of estimates and up 13% year over year. The company forecast fourth-quarter adjusted EPS of $0.88–$0.92. Five9 Announces Third Quarter 2026 Financial Results
• Positive Sentiment: KeyCorp raised its price target from $32 to $34 and maintained an Overweight rating, signaling confidence in the shares’ potential. KeyCorp recommendation
• Neutral Sentiment: Five9 agreed to buy Level AI for $325 million in cash. The deal is intended to expand AI tools for customer-service agents, automate interactions, and derive insights from customer conversations; its longer-term benefits will depend on execution and integration. Five9 to Acquire Level AI
• Negative Sentiment: Shares fell sharply even though results topped estimates, suggesting the beat did not satisfy investors’ expectations. Evercore downgraded Five9 from Outperform to In-Line and set a $24 target, adding to near-term caution. Five9 Q3 sales top estimates but shares fall Evercore recommendation

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Glenmede Trust Co. NA raised its stake in shares of Five9 by 35.7% during the 1st quarter. Glenmede Trust Co. NA now owns 577,672 shares of the software maker’s stock worth $8,763,000 after buying an additional 151,974 shares during the last quarter. Squarepoint Ops LLC raised its stake in Five9 by 12.1% in the 2nd quarter. Squarepoint Ops LLC now owns 374,506 shares of the software maker’s stock valued at $7,984,000 after purchasing an additional 40,519 shares during the last quarter. Legal & General Group Plc purchased a new position in shares of Five9 during the second quarter valued at approximately $1,263,000. Toth Financial Advisory Corp acquired a new stake in shares of Five9 during the third quarter worth $988,000. Finally, OneDigital Investment Advisors LLC acquired a new stake in Five9 in the 2nd quarter worth about $1,034,000. Hedge funds and other institutional investors own 96.64% of the company’s stock.

Five9 Price Performance

The company’s 50-day moving average is $34.67 and its 200-day moving average is $24.43. The firm has a market capitalization of $2.13 billion, a price-to-earnings ratio of 40.37 and a beta of 1.56. The company has a debt-to-equity ratio of 0.94, a current ratio of 4.15 and a quick ratio of 4.15.

Five9 (NASDAQ:FIVN) last issued its earnings results on Thursday, November 5th. The software maker reported $0.82 earnings per share for the quarter, topping the consensus estimate of $0.80 by $0.02. The business had revenue of $323.30 million for the quarter, compared to analyst estimates of $319.04 million. Five9 had a return on equity of 12.92% and a net margin of 4.94%. The business’s quarterly revenue was up 13.1% on a year-over-year basis. During the same period last year, the company posted $0.78 EPS. On average, research analysts expect that Five9, Inc. will post 1.55 earnings per share for the current year.

About Five9

Five9, Inc is a cloud-based software company that provides customer experience and contact center solutions. Its platform enables organizations to manage customer interactions across voice, chat, email, social media and other digital channels without relying on traditional on-premises contact center infrastructure.

The company’s Intelligent CX Platform includes tools for inbound and outbound communications, digital engagement, workforce optimization, workflow automation, analytics and reporting.