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Have Five9 Insiders Been Selling Stock?

Simply Wall St ·  12/08/2023 02:30

We'd be surprised if Five9, Inc. (NASDAQ:FIVN) shareholders haven't noticed that the Chief Accounting Officer & Corporate Controller, Leena Mansharamani, recently sold US$125k worth of stock at US$78.36 per share. However, the silver lining is that the sale only reduced their total holding by 4.7%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Five9

The Last 12 Months Of Insider Transactions At Five9

In the last twelve months, the biggest single sale by an insider was when the Chief Financial Officer, Barry Zwarenstein, sold US$551k worth of shares at a price of US$69.51 per share. That means that an insider was selling shares at slightly below the current price (US$81.59). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 3.8% of Barry Zwarenstein's holding.

Insiders in Five9 didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGM:FIVN Insider Trading Volume December 7th 2023

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Five9 Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Five9 insiders own 1.7% of the company, worth about US$98m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Five9 Insiders?

An insider sold Five9 shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Five9 you should be aware of.

Of course Five9 may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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