Wall Street Zen Downgrades Five9 (NASDAQ:FIVN) to Buy

Five9 (NASDAQ:FIVN) was downgraded by stock analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a research note issued on Saturday.

A number of other brokerages also recently commented on FIVN. Rosenblatt Securities raised their target price on shares of Five9 from $29.00 to $32.00 and gave the company a “buy” rating in a research note on Friday. Royal Bank Of Canada upped their price target on shares of Five9 from $25.00 to $35.00 and gave the stock an “outperform” rating in a research report on Friday. Piper Sandler increased their price target on Five9 from $24.00 to $30.00 and gave the company a “neutral” rating in a report on Friday. DA Davidson set a $22.00 price objective on Five9 in a research report on Monday, August 3rd. Finally, UBS Group boosted their price objective on Five9 from $25.00 to $36.00 and gave the stock a “buy” rating in a research note on Friday. Ten equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $29.64.

Five9 Price Performance

Shares of NASDAQ:FIVN opened at $33.99 on Friday. The stock has a 50-day simple moving average of $23.94 and a 200-day simple moving average of $19.90. The stock has a market capitalization of $2.60 billion, a P/E ratio of 49.26 and a beta of 1.41. Five9 has a 1 year low of $13.29 and a 1 year high of $34.10. The company has a debt-to-equity ratio of 0.89, a quick ratio of 4.51 and a current ratio of 4.51.

Five9 (NASDAQ:FIVN) last announced its quarterly earnings results on Thursday, August 6th. The software maker reported $0.70 earnings per share for the quarter, beating analysts’ consensus estimates of $0.68 by $0.02. Five9 had a net margin of 4.94% and a return on equity of 12.87%. The firm had revenue of $312.44 million for the quarter, compared to analysts’ expectations of $306.61 million. During the same period in the previous year, the company posted $0.76 earnings per share. Five9’s revenue was up 10.3% compared to the same quarter last year. Five9 has set its Q3 2026 guidance at 0.770-0.810 EPS and its FY 2026 guidance at 3.220-3.300 EPS. Equities analysts forecast that Five9 will post 1.39 earnings per share for the current year.

Insider Activity

In other news, EVP Panos Kozanian sold 5,869 shares of Five9 stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $24.81, for a total transaction of $145,609.89. Following the sale, the executive vice president directly owned 161,671 shares of the company’s stock, valued at approximately $4,011,057.51. The trade was a 3.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Bryan M. Lee sold 1,511 shares of the business’s stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $24.25, for a total value of $36,641.75. Following the completion of the transaction, the chief financial officer owned 309,951 shares in the company, valued at approximately $7,516,311.75. This trade represents a 0.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 a total of 85,820 shares of company stock worth $2,014,057 over the last three months. 1.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Five9

A number of hedge funds have recently bought and sold shares of the business. Massachusetts Financial Services Co. MA increased its stake in shares of Five9 by 335.9% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 254,190 shares of the software maker’s stock worth $5,097,000 after buying an additional 195,876 shares during the last quarter. Dana Investment Advisors Inc. raised its holdings in Five9 by 74.5% in 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 in the last quarter. Glenmede Trust Co. NA boosted its stake in Five9 by 35.7% during the 1st quarter. Glenmede Trust Co. NA now owns 577,672 shares of the software maker’s stock valued at $8,763,000 after acquiring an additional 151,974 shares during the last quarter. Vanguard Group Inc. boosted its stake in Five9 by 8.2% during the 4th quarter. Vanguard Group Inc. now owns 10,037,395 shares of the software maker’s stock valued at $201,250,000 after acquiring an additional 759,237 shares during the last quarter. Finally, Gagnon Advisors LLC boosted its stake in Five9 by 100.9% during the 4th quarter. Gagnon Advisors LLC now owns 336,277 shares of the software maker’s stock valued at $6,742,000 after acquiring an additional 168,891 shares during the last quarter. Institutional investors and hedge funds own 96.64% of the company’s stock.

Key Headlines Impacting Five9

Here are the key news stories impacting Five9 this week:

• Positive Sentiment: Quarterly results exceeded expectations: Five9 reported adjusted earnings of $0.70 per share, above the $0.68 consensus estimate, while revenue reached $312.44 million versus expectations of $306.61 million. Revenue increased 10.3% year over year, reinforcing the company’s continued growth in cloud contact-center software. Five9 Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: 2026 guidance was raised above analyst expectations: Five9 forecast third-quarter adjusted EPS of $0.77–$0.81, ahead of the $0.74 consensus, and revenue of $316 million–$322 million versus expectations of $314.6 million. Full-year EPS guidance of $3.22–$3.30 also exceeded the $2.88 consensus estimate, suggesting improved profitability expectations. Five9 Q2 Sales Beat Estimates
• Positive Sentiment: Analysts lifted their targets: Truist raised its target from $23 to $35 while maintaining a Buy rating, and Rosenblatt increased its target from $29 to $32 and kept a Buy rating. These revisions indicate greater confidence following the earnings report.
• Neutral Sentiment: Analyst views remain mixed: Piper Sandler raised its target from $24 to $30 but retained a Neutral rating, leaving its valuation below the prevailing share price. This suggests some analysts believe much of the improved outlook is already reflected in FIVN’s valuation. Analyst Price Target Updates
• Negative Sentiment: Profit growth was not uniform: Quarterly EPS declined from $0.76 in the year-earlier period to $0.70, despite the earnings beat. Investors may also monitor whether the company can sustain double-digit revenue growth after the recent rally.

Five9 Company Profile

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.