On May 22, 2023, Barry Zwarenstein, the Chief Financial Officer (CFO) of Five9 Inc (FIVN, Financial), sold 5,000 shares of the company's stock. This recent transaction is part of a broader trend of insider selling at Five9 Inc over the past year.
Who is Barry Zwarenstein?
Barry Zwarenstein is the CFO of Five9 Inc, a leading provider of cloud contact center software. He has been with the company since 2012 and has played a significant role in its financial growth and success. With over 30 years of experience in finance and operations, Zwarenstein has held CFO positions at several technology companies, including VeriFone Systems, Inc., and Logitech International S.A.
Five9 Inc's Business Description
Five9 Inc is a leading provider of cloud contact center software, offering an intelligent cloud contact center platform that enables businesses to deliver exceptional customer experiences. The company's platform is designed to help contact centers manage and optimize customer interactions across various channels, including voice, chat, email, and social media. Five9 Inc's solutions are used by a wide range of industries, including financial services, healthcare, retail, and technology.
Insider Trading Analysis
Over the past year, Barry Zwarenstein has sold a total of 70,835 shares and purchased 0 shares. This trend of selling without any insider purchases raises some concerns about the company's future prospects. Furthermore, the broader insider transaction history for Five9 Inc shows that there have been 0 insider buys in total over the past year, while there have been 48 insider sells during the same period. This pattern of insider selling without any insider buying may indicate a lack of confidence in the company's future growth or valuation.
Stock Price and Valuation
On the day of Barry Zwarenstein's recent sale, shares of Five9 Inc were trading at $62.56 apiece, giving the stock a market cap of $4,131.794 million. With a price of $62.56 and a GuruFocus Value of $204.09, Five9 Inc has a price-to-GF-Value ratio of 0.31. This means the stock is significantly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
Despite the stock being significantly undervalued, the consistent insider selling activity may raise concerns for potential investors. It is essential to consider both the stock's valuation and the insider trading trends when making investment decisions. Investors should conduct thorough research and analysis before making any decisions regarding Five9 Inc's stock.
