Five9 (NASDAQ:FIVN) Shares Gap Down – Here’s Why

Shares of Five9, Inc. (NASDAQ:FIVN) gapped down before the market opened 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 traded.

Wall Street Analysts Forecast Growth

FIVN has been the topic of several recent analyst reports. Needham & Company LLC reaffirmed a “buy” rating and issued a $40.00 price target on shares of Five9 in a report on Friday, May 1st. DA Davidson raised their price objective on shares of Five9 from $19.00 to $22.00 and gave the stock a “neutral” rating in a report on Friday, May 1st. Truist Financial set a $23.00 target price on shares of Five9 in a research report on Wednesday, July 1st. Zacks Research upgraded shares of Five9 from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, July 1st. Finally, Jefferies Financial Group reaffirmed a “hold” rating on shares of Five9 in a research report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $25.93.

Five9 Price Performance

The stock has a market capitalization of $1.94 billion, a P/E ratio of 38.37, a PEG ratio of 1.12 and a beta of 1.46. The company has a 50 day moving average of $22.27 and a 200-day moving average of $18.94. The company has a quick ratio of 4.51, a current ratio of 4.51 and a debt-to-equity ratio of 0.89.

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

Insider Activity

In other news, CFO Bryan M. Lee sold 1,511 shares of the company’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 completion of the transaction, the chief financial officer directly owned 309,951 shares of the company’s stock, valued at approximately $7,516,311.75. This represents a 0.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through 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, EVP Panos Kozanian sold 5,869 shares of the company’s 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 $145,609.89. Following the transaction, the executive vice president directly owned 161,671 shares of the company’s stock, valued at $4,011,057.51. This trade represents a 3.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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 quarter. Corporate insiders own 1.20% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FIVN. Massachusetts Financial Services Co. MA lifted its stake in Five9 by 335.9% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 254,190 shares of the software maker’s stock valued at $5,097,000 after buying an additional 195,876 shares during the last quarter. Dana Investment Advisors Inc. boosted its holdings in shares of Five9 by 74.5% during the fourth quarter. Dana Investment Advisors Inc. now owns 222,515 shares of the software maker’s stock valued at $4,461,000 after acquiring an additional 95,032 shares during the period. Voss Capital LP boosted its holdings in shares of Five9 by 40.0% during the third quarter. Voss Capital LP now owns 4,550,000 shares of the software maker’s stock valued at $110,110,000 after acquiring an additional 1,300,000 shares during the period. Vanguard Group Inc. grew its position in shares of Five9 by 8.2% during the fourth quarter. Vanguard Group Inc. now owns 10,037,395 shares of the software maker’s stock worth $201,250,000 after acquiring an additional 759,237 shares during the last quarter. Finally, SG Americas Securities LLC grew its position in shares of Five9 by 83.5% during the fourth quarter. SG Americas Securities LLC now owns 152,413 shares of the software maker’s stock worth $3,056,000 after acquiring an additional 69,348 shares during the last quarter. Institutional investors and hedge funds own 96.64% of the company’s stock.

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.