Fair Isaac (NYSE:FICO) Hits New 52-Week Low - What's Next?

Key Points

• Fair Isaac Corporation's stock recently hit a new 52-week low at $1,336.50 during trading, closing at $1,342.35.
• Multiple analysts have adjusted their target prices for Fair Isaac, with Oppenheimer reducing it from $2,300 to $1,953 while maintaining an "outperform" rating.
• The company announced a $1 billion stock buyback plan, indicating confidence in its undervalued shares, despite recent insider selling by key executives.

Fair Isaac Corporation (NYSE:FICO - Get Free Report)'s share price hit a new 52-week low during trading on Wednesday . The company traded as low as $1,336.50 and last traded at $1,342.35, with a volume of 418482 shares. The stock had previously closed at $1,360.99.

Analysts Set New Price Targets

Several research firms have commented on FICO. Needham & Company LLC decreased their price target on shares of Fair Isaac from $2,575.00 to $1,950.00 and set a "buy" rating for the company in a research report on Wednesday, July 16th. Oppenheimer decreased their target price on shares of 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. Raymond James Financial cut their price target on shares of Fair Isaac from $2,230.00 to $1,800.00 and set an "outperform" rating on the stock in a report on Thursday, July 31st. Bank of America started coverage on Fair Isaac in a research report on Thursday, April 10th. They issued a "buy" rating and a $2,800.00 price objective for the company. Finally, BMO Capital Markets upgraded Fair Isaac to a "strong-buy" rating in a research note on Thursday, July 10th. Two research analysts have rated the stock with a hold rating, ten have given a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat, the stock currently has an average rating of "Buy" and a consensus target price of $2,163.14.

Fair Isaac Price Performance

The firm has a market capitalization of $31.66 billion, a price-to-earnings ratio of 51.59, a price-to-earnings-growth ratio of 2.60 and a beta of 1.28. The business has a fifty day moving average price of $1,658.17 and a two-hundred day moving average price of $1,792.59.

Fair Isaac (NYSE:FICO - Get Free Report) last issued 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. Fair Isaac had a negative return on equity of 48.88% and a net margin of 32.80%. The firm had revenue of $536.42 million for the quarter, compared to analyst estimates of $520.40 million. During the same quarter in the prior year, the firm earned $6.25 earnings per share. Fair Isaac's revenue for the quarter was up 19.8% on a year-over-year basis. On average, research analysts predict that Fair Isaac Corporation will post 24.15 earnings per share for the current year.

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

Insider Activity

In related news, CEO William J. Lansing sold 3,811 shares of the stock in a transaction on Tuesday, July 8th. The shares were sold at an average price of $1,565.99, for a total transaction of $5,967,987.89. Following the sale, the chief executive officer directly owned 44,338 shares of the company's stock, valued at approximately $69,432,864.62. This represents a 7.92% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Steven P. Weber sold 1,000 shares of the firm's stock in a transaction on Monday, June 9th. The shares were sold at an average price of $1,738.25, for a total transaction of $1,738,250.00. Following the sale, the chief financial officer 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. Insiders have sold a total of 19,032 shares of company stock worth $35,172,583 over the last ninety days. 3.46% of the stock is owned by insiders.

Hedge Funds Weigh In On Fair Isaac

Hedge funds have recently bought and sold shares of the business. Meeder Asset Management Inc. increased its stake in Fair Isaac by 41.7% during the 1st quarter. Meeder Asset Management Inc. now owns 17 shares of the technology company's stock worth $31,000 after buying an additional 5 shares in the last quarter. Baker Avenue Asset Management LP increased its position in shares of Fair Isaac by 4.6% during the first quarter. Baker Avenue Asset Management LP now owns 113 shares of the technology company's stock worth $209,000 after purchasing an additional 5 shares in the last quarter. Meiji Yasuda Life Insurance Co increased its position in shares of Fair Isaac by 1.0% during the fourth quarter. Meiji Yasuda Life Insurance Co now owns 608 shares of the technology company's stock worth $1,210,000 after purchasing an additional 6 shares in the last quarter. City Holding Co. raised its stake in Fair Isaac by 11.3% in the 1st quarter. City Holding Co. now owns 59 shares of the technology company's stock valued at $109,000 after purchasing an additional 6 shares during the last quarter. Finally, Valeo Financial Advisors LLC lifted its holdings in Fair Isaac by 4.4% in the 1st quarter. Valeo Financial Advisors LLC now owns 142 shares of the technology company's stock valued at $262,000 after purchasing an additional 6 shares in the last quarter. Hedge funds and other institutional investors own 85.75% of the company's stock.

About Fair Isaac

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.