Fair Isaac (NYSE:FICO) Hits New 12-Month Low - What's Next?

Key Points

• Fair Isaac Corporation's stock hit a new 52-week low, trading at $1,305.15, with a recent trading volume of 262,454 shares.
• Multiple analysts have adjusted their price targets downwards, with the consensus rating for the stock at "Buy" and an average price target of $2,163.14.
• The company reported strong quarterly earnings with $8.57 EPS, exceeding estimates, along with a significant revenue increase of 19.8% year-over-year.

Shares of Fair Isaac Corporation (NYSE:FICO - Get Free Report) hit a new 52-week low on Tuesday . The stock traded as low as $1,305.15 and last traded at $1,309.09, with a volume of 262454 shares changing hands. The stock had previously closed at $1,320.88.

Wall Street Analyst Weigh In

Several research firms have weighed in on FICO. Wells Fargo & Company dropped their price objective on Fair Isaac from $2,600.00 to $2,300.00 and set an "overweight" rating for the company in a report on Wednesday, July 9th. Oppenheimer decreased their target price on Fair Isaac from $2,300.00 to $1,953.00 and set an "outperform" rating for the company in a research report on Thursday, July 31st. Barclays reduced their price objective on Fair Isaac from $2,250.00 to $2,000.00 and set an "overweight" rating for the company in a research report on Wednesday, July 9th. BMO Capital Markets upgraded Fair Isaac to a "strong-buy" rating in a research note on Thursday, July 10th. Finally, Baird R W upgraded Fair Isaac from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, May 28th. Two research analysts have rated the stock with a hold rating, ten have issued a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and an average price target of $2,163.14.

Fair Isaac Stock Down 1.3%

The stock has a market cap of $31.64 billion, a P/E ratio of 51.56, a PEG ratio of 2.57 and a beta of 1.28. The business has a 50 day moving average price of $1,632.49 and a 200 day moving average price of $1,781.71.

Fair Isaac (NYSE:FICO - Get Free Report) last released its earnings results on Wednesday, July 30th. The technology company reported $8.57 EPS for the quarter, beating analysts' consensus estimates of $7.75 by $0.82. The firm had revenue of $536.42 million for the quarter, compared to analysts' expectations of $520.40 million. Fair Isaac had a negative return on equity of 48.88% and a net margin of 32.80%. The company's quarterly revenue was up 19.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $6.25 earnings per share. On average, research analysts expect that Fair Isaac Corporation will post 24.15 earnings per share for the current fiscal year.

Fair Isaac declared that its board has approved a share repurchase plan on Thursday, June 19th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the technology company to reacquire up to 2.3% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board believes its stock is undervalued.

Insider Buying and Selling

In other news, CEO William J. Lansing sold 6,010 shares of the company's stock in a transaction that occurred on Tuesday, June 10th. The stock was sold at an average price of $1,767.82, for a total transaction of $10,624,598.20. Following the transaction, the chief executive officer owned 42,138 shares of the company's stock, valued at approximately $74,492,399.16. This represents a 12.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Steven P. Weber sold 1,000 shares of the company's stock in a transaction that occurred on Monday, June 9th. The shares were sold at an average price of $1,738.25, for a total value of $1,738,250.00. Following the transaction, the chief financial officer directly owned 1,862 shares in the company, valued at approximately $3,236,621.50. This represents a 34.94% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 13,021 shares of company stock worth $22,247,892. Insiders own 3.46% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Westside Investment Management Inc. bought a new position in Fair Isaac in the second quarter worth approximately $26,000. ORG Partners LLC bought a new position in Fair Isaac in the second quarter worth approximately $27,000. Hilltop National Bank bought a new stake in Fair Isaac during the 2nd quarter valued at $27,000. Geo Capital Gestora de Recursos Ltd bought a new stake in Fair Isaac during the 1st quarter valued at $28,000. Finally, N.E.W. Advisory Services LLC bought a new stake in Fair Isaac during the 1st quarter valued at $30,000. Institutional investors own 85.75% of the company's stock.

Fair Isaac Company Profile

Fair Isaac Corporation develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Scores and Software. The Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing, as well as associated professional services.