On September 27, 2023, Five9, Inc. (NASDAQ:FIVN) experienced an unusual surge in options trading activity. Traders acquired a total of 8,504 call options on the Stock, representing a remarkable increase of 2,115% compared to its typical daily volume of 384 call options.
As of Wednesday’s opening bell, shares of Five9 were priced at $63.31. The company’s fifty-day moving average price stood at $73.42, while its 200-day moving average price was recorded as $70.41. With a market capitalization of $4.57 billion and a beta of 0.76, Five9 has a price-to-earnings ratio of -52.76. Over the past year, the stock has seen a low of $46.61 and a high of $89.58. Furthermore, Five9 possesses a debt-to-equity ratio of 1.62 along with a current ratio and quick ratio both measuring 5.32.
In terms of institutional investors’ actions regarding the stock, First Horizon Advisors Inc., for instance, saw its holdings in shares of Five9 grow by 54.2% during the fourth quarter and now owns 404 shares valued at $27,000 after acquiring an additional 142 shares during that time period.
Similarly impressive is Quadrant Capital Group LLC’s surge in holdings by an astonishing rate—1,013.2% during the fourth quarter—which translates to owning 423 shares worth $29,000 after purchasing an additional 385 shares.
Other institutional investors have also made notable moves with their positions in Five9 recently such as Lazard Asset Management LLC and Neo Ivy Capital Management who bought new positions valued at $41,000 and $42,000 respectively.
Five9 has been the subject of various research reports from industry experts as well.
StockNews.com initiated coverage on the stock and assigned it a “hold” rating. Wells Fargo & Company, on the other hand, increased their target price from $90.00 to $95.00 and gave Five9 an “overweight” rating.
DA Davidson also initiated coverage on the stock, assigning a “neutral” rating with a $75.00 target price. Deutsche Bank Aktiengesellschaft upgraded Five9 from a “hold” rating to a “buy” rating and upped their price target from $75.00 to $80.00 in their research note.
Lastly, Roth Mkm raised their price target for Five9 shares from $80.00 to $90.00 and provided a “buy” rating.
In summary, Five9 experienced significant options trading activity on September 27, 2023. The company’s stock opened at $63.31, while various institutional investors made substantial changes to their positions in the stock. With multiple research reports indicating positive sentiment towards the company’s performance, it remains an interesting entity in the market with potential for growth and further development in its sector.
Five9 Exceeds Expectations in Quarterly Earnings Report but Faces Challenges with Net Margin and Return on Equity
Five9 (NASDAQ:FIVN), a leading software maker, recently released its quarterly earnings results on August 7th. The company reported an EPS of ($0.23) for the quarter, surpassing analysts’ consensus estimates of ($0.35) by $0.12. Additionally, Five9 generated a revenue of $222.88 million, exceeding analyst estimates of $214.11 million.
Despite these positive outcomes, Five9 faced some challenges in terms of its net margin and return on equity. The company’s negative net margin was recorded at 10.12%, while its negative return on equity stood at 17.08%. These figures indicate that the firm needs to address certain areas to improve its financial performance.
The market has seen institutional investors making changes to their positions in Five9 stock recently. First Horizon Advisors Inc., for example, increased its holdings in shares of Five9 by 54.2% during the fourth quarter and now owns 404 shares valued at $27,000 after purchasing an additional 142 shares.
Quadrant Capital Group LLC also saw substantial growth in its holdings with a significant increase of 1,013.2% during the same period. As a result, Quadrant Capital Group LLC now holds 423 shares valued at $29,000 after purchasing an additional 385 shares.
Lazard Asset Management LLC also decided to invest in Five9 during the first quarter by acquiring new shares worth $41,000. Similarly, Neo Ivy Capital Management increased its shareholdings by 117.6% during the second quarter and now owns 470 shares valued at $42,000 after purchasing an additional 254 shares.
Finally, Quarry LP concluded the list of institutional investors showing interest in Five9 by acquiring new shares worth $43,000 during the first quarter. In total, institutional investors hold around 96-64% stake in the company’s stock.
In other news, Chief Revenue Officer Daniel P. Burkland sold 8,000 shares of Five9’s stock on August 1st. These shares were sold at an average price of $86.38, resulting in a total transaction value of $691,040. Following this transaction, Burkland now holds 109,875 shares in the company, valued at $9,491,002.50.
Another significant sale occurred when CEO Michael Burkland sold 53,671 shares of Five9 stock on June 29th at an average price of $80.00 per share. This transaction amounted to a total value of $4,293,680. Following the sale, Burkland retained ownership of 187,416 shares valued at approximately $14,993,280.
These insider transactions indicate that both CRO Daniel P. Burkland and CEO Michael Burkland have been divesting their holdings in Five9 recently. Over the last ninety days alone, insiders have sold a cumulative total of 82,171 shares worth $6,739,850.
In conclusion, Five9’s latest earnings report highlighted its ability to surpass analysts’ expectations in terms of EPS and revenue for the quarter. However, the company still faces challenges regarding its net margin and return on equity. Institutional investors have shown interest in acquiring positions within the company’s stock while insiders have been actively selling their holdings. Investors should closely monitor these developments as they may impact future performance and strategic decisions within Five9.
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