Fair Isaac (NYSE:FICO) Rating Lowered to Neutral at Bank of America

Key Points

• Bank of America downgraded Fair Isaac to “neutral” from “buy” and set a $700 price target, implying 13.82% upside from the prior close.
• FICO shares opened at $615.01 after falling 26.9%, near their 12-month low of $595.19. The stock has a “Moderate Buy” consensus rating, though analyst targets vary widely.
• Fair Isaac’s latest quarter exceeded EPS expectations and delivered 25.7% year-over-year revenue growth, while institutional investors own 85.75% of the company.

Fair Isaac (NYSE:FICO - Get Free Report) was downgraded by stock analysts at Bank of America from a "buy" rating to a "neutral" rating in a report issued on Wednesday, Briefing.com reports. They presently have a $700.00 price objective on the technology company's stock. Bank of America's price target would suggest a potential upside of 13.82% from the company's previous close.

Several other research firms have also weighed in on FICO. UBS Group reduced their target price on shares of Fair Isaac from $1,200.00 to $1,130.00 and set a "neutral" rating on the stock in a report on Wednesday, August 12th. Wall Street Zen lowered Fair Isaac from a "buy" rating to a "hold" rating in a research report on Sunday, June 28th. Huber Research lowered Fair Isaac to an "underweight" rating in a research note on Tuesday. Jefferies Financial Group reiterated a "buy" rating on shares of Fair Isaac in a report on Tuesday. Finally, Barclays reaffirmed an "overweight" rating and issued a $935.00 price objective on shares of Fair Isaac in a research report on Wednesday. Ten investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $1,332.50.

Fair Isaac Trading Down 26.9%

Shares of FICO opened at $615.01 on Wednesday. The firm has a market capitalization of $13.28 billion, a P/E ratio of 17.76, a price-to-earnings-growth ratio of 0.76 and a beta of 1.32. The stock's fifty day simple moving average is $1,057.43 and its 200 day simple moving average is $1,111.06. Fair Isaac has a twelve month low of $595.19 and a twelve month high of $1,998.01.

Fair Isaac (NYSE:FICO - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The technology company reported $12.18 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $11.76 by $0.42. The firm had revenue of $674.19 million during the quarter, compared to the consensus estimate of $679.17 million. Fair Isaac had a negative return on equity of 32.51% and a net margin of 34.05%.The firm's quarterly revenue was up 25.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $8.57 earnings per share. Fair Isaac has set its FY 2026 guidance at 42.430-42.430 EPS. Sell-side analysts predict that Fair Isaac will post 37.2 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Eva Manolis sold 967 shares of Fair Isaac stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $1,400.00, for a total value of $1,353,800.00. Following the completion of the transaction, the director owned 498 shares in the company, valued at approximately $697,200. This trade represents a 66.01% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.02% of the stock is currently owned by corporate insiders.

Institutional Trading of Fair Isaac

A number of institutional investors and hedge funds have recently modified their holdings of FICO. Canopy Partners LLC boosted its position in shares of Fair Isaac by 2.3% during the 4th quarter. Canopy Partners LLC now owns 363 shares of the technology company's stock worth $614,000 after purchasing an additional 8 shares in the last quarter. Heartland Bank & Trust Co increased its stake in Fair Isaac by 2.9% during the 1st quarter. Heartland Bank & Trust Co now owns 468 shares of the technology company's stock valued at $500,000 after purchasing an additional 13 shares in the last quarter. Harbour Investments Inc. lifted its stake in shares of Fair Isaac by 82.4% in the fourth quarter. Harbour Investments Inc. now owns 31 shares of the technology company's stock valued at $52,000 after buying an additional 14 shares in the last quarter. FNY Investment Advisers LLC raised its holdings in shares of Fair Isaac by 3.6% in the 2nd quarter. FNY Investment Advisers LLC now owns 398 shares of the technology company's stock worth $475,000 after acquiring an additional 14 shares during the last quarter. Finally, NewEdge Advisors LLC increased its holdings in Fair Isaac by 4.5% during the 2nd quarter. NewEdge Advisors LLC now owns 324 shares of the technology company's stock worth $387,000 after purchasing an additional 14 shares in the last quarter. 85.75% of the stock is owned by institutional investors and hedge funds.

Key Fair Isaac News

Here are the key news stories impacting Fair Isaac this week:

• Positive Sentiment: Fair Isaac’s latest reported quarter showed strong underlying performance: earnings exceeded estimates and revenue increased 25.7% year over year. However, this was not the primary focus of today’s trading. Why Fair Isaac Corporation Stock Is Falling Today

About Fair Isaac

Fair Isaac Corporation, known as FICO, develops analytics and software used by businesses to make decisions about credit, risk, fraud, customer engagement and other operational activities. The company is best known for the FICO Score, a credit-risk scoring system used by lenders to help evaluate consumer creditworthiness.

FICO's offerings include credit scoring solutions, decision-management software, fraud detection and identity verification tools, and analytics platforms. Its products are used by financial institutions, insurers, retailers, telecommunications companies and other organizations to automate decisions, manage risk and improve customer relationships.

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