Fair Isaac (NYSE:FICO) Hits New 1-Year Low - Should You Sell?

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 stock price hit a new 52-week low during mid-day 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 changing hands. The stock had previously closed at $1,360.99.

Analyst Ratings Changes

FICO has been the topic of a number of research analyst reports. Raymond James Financial reduced their price target on 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. Wells Fargo & Company cut their price objective on Fair Isaac from $2,600.00 to $2,300.00 and set an "overweight" rating on the stock in a research report on Wednesday, July 9th. Baird R W raised Fair Isaac from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, May 28th. Jefferies Financial Group reaffirmed a "buy" rating on shares of Fair Isaac in a research report on Thursday, July 17th. Finally, Griffin Securities set a $2,000.00 price objective on Fair Isaac in a research report on Wednesday, July 9th. Two investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and two have issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus target price of $2,163.14.

Fair Isaac Trading Down 1.1%

The firm has a 50 day simple moving average of $1,658.17 and a 200 day simple moving average of $1,792.01. The firm has a market capitalization of $31.67 billion, a PE ratio of 51.59, a P/E/G ratio of 2.57 and a beta of 1.28.

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 the consensus estimate 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 business had revenue of $536.42 million for the quarter, compared to the consensus estimate of $520.40 million. During the same period last year, the business posted $6.25 EPS. The company's revenue was up 19.8% compared to the same quarter last year. Research analysts forecast that Fair Isaac Corporation will post 24.15 earnings per share for the current year.

Fair Isaac declared that its board has initiated a share buyback program on Thursday, June 19th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the technology company to purchase up to 2.3% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other Fair Isaac news, CFO Steven P. Weber sold 1,000 shares of the business's stock in a transaction dated Monday, June 9th. The stock was sold at an average price of $1,738.25, for a total transaction of $1,738,250.00. Following the completion of the sale, the chief financial officer owned 1,862 shares of the company's stock, valued at approximately $3,236,621.50. The trade was a 34.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO William J. Lansing sold 6,010 shares of the business's stock in a transaction dated Tuesday, June 10th. The shares were sold at an average price of $1,767.82, for a total value of $10,624,598.20. Following the sale, the chief executive officer directly owned 42,138 shares of the company's stock, valued at $74,492,399.16. This represents a 12.48% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 19,032 shares of company stock worth $35,172,583. Company insiders own 3.46% of the company's stock.

Institutional Trading of Fair Isaac

Several hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in Fair Isaac by 2.0% during the first quarter. Vanguard Group Inc. now owns 2,962,434 shares of the technology company's stock valued at $5,463,202,000 after acquiring an additional 58,740 shares during the period. Price T Rowe Associates Inc. MD raised its holdings in Fair Isaac by 0.4% during the first quarter. Price T Rowe Associates Inc. MD now owns 823,574 shares of the technology company's stock valued at $1,518,803,000 after acquiring an additional 3,677 shares during the period. Geode Capital Management LLC raised its holdings in Fair Isaac by 2.0% during the second quarter. Geode Capital Management LLC now owns 712,699 shares of the technology company's stock valued at $1,299,727,000 after acquiring an additional 13,906 shares during the period. Principal Financial Group Inc. raised its holdings in Fair Isaac by 7.3% during the first quarter. Principal Financial Group Inc. now owns 391,823 shares of the technology company's stock valued at $722,585,000 after acquiring an additional 26,811 shares during the period. Finally, American Century Companies Inc. increased its holdings in shares of Fair Isaac by 4.7% in the first quarter. American Century Companies Inc. now owns 386,618 shares of the technology company's stock worth $712,985,000 after purchasing an additional 17,498 shares during the last quarter. 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.