Form 4: Five9 CFO Barry Zwarenstein Sells Shares Under 10b5-1 Trading Plan

Barry Zwarenstein, CFO of Five9, Inc., executed sales of common stock on June 12, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• On June 12, 2024, Barry Zwarenstein, the CFO of Five9, Inc., sold 1,115 shares of common stock at a weighted average price of $45.04.
• These shares were sold in multiple transactions with prices ranging from $45.03 to $45.06.
• Additionally, 4,241 shares were sold indirectly through a trust at a weighted average price of $45.04, with individual prices ranging from $45.00 to $45.14.
• The sales were executed under a Rule 10b5-1 trading plan adopted on March 4, 2024.
• Following these transactions, Zwarenstein directly owns 106,140 shares and indirectly owns 91,328 shares through a trust.

Sentiment

Score: 6

Explanation: The document itself is neutral as it simply reports stock sales. The existence of a 10b5-1 plan suggests the sales were pre-planned and not based on any negative inside information, but any insider selling can create slight negative sentiment.

Positives

• The sales were executed under a pre-arranged 10b5-1 trading plan, indicating they were planned in advance and not based on immediate market information.

Risks

• Executive stock sales can sometimes be perceived negatively by investors, although the existence of a 10b5-1 plan mitigates this concern.

Future Outlook

The document does not contain any forward-looking statements about the company's future performance.

Industry Context

Insider trading activity is always closely watched in the tech industry, especially for companies like Five9 in the competitive cloud communications space. Investors often use this information to gauge executive sentiment.

Comparison to Industry Standards

• Executive stock sales are common across publicly traded companies, particularly in the tech sector.
• The use of a 10b5-1 trading plan is a standard practice to avoid accusations of insider trading, similar to practices at companies like Salesforce (CRM) and Zoom (ZM), where executives routinely sell shares under such plans.
• The size of the transactions is relatively small compared to the overall market capitalization of Five9, which is typical for routine sales by executives.

Stakeholder Impact

• The stock sales could have a minor impact on shareholders due to potential price fluctuations, but the pre-planned nature of the sales mitigates this concern.

Key Dates