Robert W. Baird Has Lowered Expectations for Fair Isaac (NYSE:FICO) Stock Price

Key Points

• Robert W. Baird cut Fair Isaac’s price target to $1,070 from $1,549 while maintaining an “outperform” rating, implying roughly 61% upside from the reported $663.17 share price.
• Analyst sentiment remains broadly positive but mixed: FICO has a “Moderate Buy” consensus rating and a $1,210.38 average target, despite recent target reductions from firms including UBS and Barclays.
• Fair Isaac’s latest quarter showed 25.7% year-over-year revenue growth and EPS above estimates, but investors face risks from VantageScore and other competitors challenging FICO’s dominance in mortgage credit scoring.

Fair Isaac (NYSE:FICO - Get Free Report) had its price objective lowered by Robert W. Baird from $1,549.00 to $1,070.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm presently has an "outperform" rating on the technology company's stock. Robert W. Baird's price target would suggest a potential upside of 61.35% from the stock's current price.

Several other research firms have also issued reports on FICO. Jefferies Financial Group restated a "buy" rating on shares of Fair Isaac in a research report on Tuesday. UBS Group dropped their price objective on Fair Isaac from $1,200.00 to $1,130.00 and set a "neutral" rating for the company in a research note on Wednesday, August 12th. Raymond James Financial reissued an "outperform" rating on shares of Fair Isaac in a research report on Wednesday, September 9th. Barclays set a $875.00 target price on shares of Fair Isaac in a report on Friday. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Fair Isaac in a research report on Tuesday. Ten research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Fair Isaac presently has a consensus rating of "Moderate Buy" and a consensus target price of $1,210.38.

Fair Isaac Price Performance

FICO stock opened at $663.17 on Friday. Fair Isaac has a one year low of $586.05 and a one year high of $1,998.01. The firm has a 50 day simple moving average of $1,033.98 and a two-hundred day simple moving average of $1,104.25. The stock has a market cap of $14.32 billion, a PE ratio of 19.16, a P/E/G ratio of 0.53 and a beta of 1.35.

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

Insider Transactions at Fair Isaac

In other news, Director Eva Manolis sold 967 shares of the company's stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $1,400.00, for a total value of $1,353,800.00. Following the sale, the director directly owned 498 shares of the company's stock, valued at $697,200. This represents a 66.01% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 3.02% of the company's stock.

Institutional Investors Weigh In On Fair Isaac

A number of institutional investors have recently made changes to their positions in FICO. Bayban bought a new stake in shares of Fair Isaac in the fourth quarter worth approximately $25,000. Keating Financial Advisory Services Inc. bought a new stake in shares of Fair Isaac during the 2nd quarter valued at $30,000. Western Wealth Management LLC bought a new position in Fair Isaac in the 1st quarter worth $29,000. Harbour Investments Inc. raised its holdings in Fair Isaac by 82.4% in the 4th quarter. Harbour Investments Inc. now owns 31 shares of the technology company's stock worth $52,000 after purchasing an additional 14 shares during the period. Finally, Reflection Asset Management purchased a new position in Fair Isaac during the fourth quarter valued at $52,000. Hedge funds and other institutional investors own 85.75% of the company's stock.

Key Fair Isaac News

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

• Positive Sentiment: Some analysts continue to see substantial recovery potential. BMO Capital Markets maintained an “outperform” rating while lowering its price target to $1,150, and Wells Fargo retained its “buy” rating. BMO Capital Markets cuts FICO price target Wells Fargo maintains buy rating
• Positive Sentiment: Retail buying may be contributing to the rebound: Robinhood traders reportedly made their largest five-day buying push on record and included FICO among their purchases. Robinhood traders buying FICO
• Neutral Sentiment: Analyst opinion is divided. Bank of America downgraded FICO to “neutral” and cut its target to $700 from $1,400, while BMO’s $1,150 target implies considerable upside from the recently depressed trading level. Bank of America downgrades FICO
• Negative Sentiment: The key catalyst remains mortgage-market disruption. The FHFA may move toward a two-bureau credit system, while broader approval of VantageScore 4.0 and Rocket Mortgage’s preference for VantageScore increase the credibility of FICO’s main competitor. Investors fear reduced pricing power, market share and mortgage-related revenue. FHFA two-bureau proposal pressures FICO VantageScore competition threatens FICO
• Negative Sentiment: Reports also highlight a potential $0.99 mortgage-score rival and aggressive pricing competition from TransUnion, reinforcing concerns that FICO’s long-standing mortgage-scoring advantage could be permanently weakened. FICO faces mortgage score rival
• Negative Sentiment: A law firm has begun investigating possible securities-law violations following the sharp decline, adding headline and litigation risk, although the investigation itself does not change FICO’s operations. FICO investigation notice

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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