Five9 (NASDAQ:FIVN) Shares Gap Up on Earnings Beat

Five9, Inc. (NASDAQ:FIVN) shares gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $25.08, but opened at $27.00. Five9 shares last traded at $25.14, with a volume of 1,101,834 shares trading hands.

The software maker reported $0.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.48 by $0.14. Five9 had a negative net margin of 1.23% and a positive return on equity of 3.62%. The company had revenue of $279.71 million for the quarter, compared to analysts’ expectations of $272.26 million. During the same quarter in the previous year, the company earned $0.48 earnings per share. Five9’s quarterly revenue was up 13.2% on a year-over-year basis.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Mizuho reduced their target price on shares of Five9 from $55.00 to $42.00 and set an “outperform” rating on the stock in a research report on Tuesday, April 15th. Morgan Stanley cut their price target on Five9 from $48.00 to $28.00 and set an “equal weight” rating on the stock in a research note on Wednesday, April 16th. Royal Bank of Canada lifted their price objective on Five9 from $30.00 to $35.00 and gave the company an “outperform” rating in a research note on Friday. Rosenblatt Securities restated a “buy” rating and set a $36.00 price target on shares of Five9 in a report on Friday. Finally, Wells Fargo & Company dropped their price target on shares of Five9 from $45.00 to $23.00 and set an “equal weight” rating on the stock in a research note on Tuesday, April 22nd. Seven research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $45.00.

Insider Activity at Five9

In other Five9 news, CEO Michael Burkland sold 12,595 shares of the business’s stock in a transaction on Monday, March 3rd. The shares were sold at an average price of $35.63, for a total value of $448,759.85. Following the sale, the chief executive officer now owns 404,056 shares in the company, valued at $14,396,515.28. The trade was a 3.02 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Panos Kozanian sold 7,619 shares of Five9 stock in a transaction dated Tuesday, March 4th. The stock was sold at an average price of $33.40, for a total value of $254,474.60. Following the completion of the sale, the executive vice president now directly owns 126,359 shares in the company, valued at $4,220,390.60. This trade represents a 5.69 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 29,574 shares of company stock valued at $1,004,346. 1.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On Five9

Institutional investors have recently added to or reduced their stakes in the company. Lindbrook Capital LLC grew its holdings in shares of Five9 by 155.7% in the fourth quarter. Lindbrook Capital LLC now owns 854 shares of the software maker’s stock valued at $35,000 after purchasing an additional 520 shares in the last quarter. Banque Transatlantique SA bought a new stake in shares of Five9 in the 4th quarter worth about $36,000. Johnson Financial Group Inc. purchased a new stake in shares of Five9 during the 4th quarter valued at about $47,000. Steward Partners Investment Advisory LLC lifted its holdings in shares of Five9 by 7,305.6% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 1,333 shares of the software maker’s stock valued at $54,000 after acquiring an additional 1,315 shares during the last quarter. Finally, Venturi Wealth Management LLC grew its position in Five9 by 3,955.4% in the fourth quarter. Venturi Wealth Management LLC now owns 2,636 shares of the software maker’s stock worth $107,000 after acquiring an additional 2,571 shares in the last quarter. Hedge funds and other institutional investors own 96.64% of the company’s stock.

Five9 Stock Down 1.0 %

The company has a market capitalization of $1.89 billion, a P/E ratio of -124.14, a PEG ratio of 9.41 and a beta of 1.29. The company has a quick ratio of 1.85, a current ratio of 1.85 and a debt-to-equity ratio of 1.32. The company has a 50 day simple moving average of $27.45 and a two-hundred day simple moving average of $34.84.

About Five9

Five9, Inc, together with its subsidiaries, provides intelligent cloud software for contact centers in the United States, India, and internationally. It offers a virtual contact center cloud platform that delivers a suite of applications, which enables the breadth of contact center-related customer service, sales, and marketing functions.