Fair Isaac (NYSE:FICO) Rating Increased to Strong-Buy at Zacks Research

Key Points

• Fair Isaac has been upgraded by Zacks Research from a "hold" rating to a "strong-buy" rating, indicating strong investor confidence.
• Despite the upgrade, some analysts have recently reduced their price targets, with figures ranging from $1,590 to $2,400.
• The company's recent quarterly earnings surpassed expectations, reporting $8.57 EPS, signaling strong revenue growth and underlying financial health.

Fair Isaac (NYSE:FICO - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

A number of other research analysts have also recently issued reports on FICO. Raymond James Financial reduced their price objective on Fair Isaac from $2,230.00 to $1,800.00 and set an "outperform" rating on the stock in a research note on Thursday, July 31st. Griffin Securities set a $1,800.00 price target on shares of Fair Isaac in a research report on Monday, August 18th. Wells Fargo & Company set a $2,300.00 target price on shares of Fair Isaac in a research report on Wednesday, October 1st. Barclays boosted their price objective on shares of Fair Isaac from $2,000.00 to $2,400.00 and gave the company an "overweight" rating in a research report on Thursday, October 2nd. Finally, UBS Group boosted their price objective on shares of Fair Isaac from $1,590.00 to $1,640.00 and gave the company a "neutral" rating in a research report on Monday, September 15th. Three research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus target price of $2,130.29.

Fair Isaac Price Performance

Shares of NYSE FICO traded up $15.84 during mid-day trading on Tuesday, hitting $1,710.85. 37,266 shares of the stock traded hands, compared to its average volume of 283,876. The company has a market cap of $41.06 billion, a PE ratio of 66.56, a price-to-earnings-growth ratio of 2.04 and a beta of 1.35. Fair Isaac has a twelve month low of $1,300.00 and a twelve month high of $2,402.51. The firm has a 50 day simple moving average of $1,493.45 and a two-hundred day simple moving average of $1,702.13.

Fair Isaac (NYSE:FICO - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The technology company reported $8.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $7.75 by $0.82. The company had revenue of $536.42 million for the quarter, compared to the consensus estimate of $520.40 million. Fair Isaac had a negative return on equity of 48.88% and a net margin of 32.80%.The firm's revenue was up 19.8% compared to the same quarter last year. During the same period in the previous year, the business earned $6.25 EPS. Fair Isaac has set its FY 2025 guidance at 29.150-29.150 EPS. On average, equities research analysts anticipate that Fair Isaac will post 24.15 earnings per share for the current fiscal year.

Fair Isaac declared that its board has authorized a share repurchase plan on Thursday, June 19th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the technology company to buy up to 2.3% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board believes its shares are undervalued.

Insiders Place Their Bets

In other Fair Isaac news, CEO William J. Lansing sold 6,011 shares of Fair Isaac stock in a transaction on Tuesday, September 9th. The shares were sold at an average price of $1,537.50, for a total value of $9,241,912.50. Following the completion of the transaction, the chief executive officer owned 42,138 shares of the company's stock, valued at approximately $64,787,175. The trade was a 12.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 3.46% of the company's stock.

Institutional Trading of Fair Isaac

Several institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its position in shares of Fair Isaac by 1.2% in the second quarter. Vanguard Group Inc. now owns 2,997,525 shares of the technology company's stock valued at $5,479,356,000 after purchasing an additional 35,091 shares during the period. State Street Corp grew its position in shares of Fair Isaac by 1.2% in the second quarter. State Street Corp now owns 1,083,410 shares of the technology company's stock valued at $1,980,430,000 after purchasing an additional 13,018 shares during the period. Price T Rowe Associates Inc. MD grew its position in shares of Fair Isaac by 0.4% in 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 purchasing an additional 3,677 shares during the period. Geode Capital Management LLC grew its stake in Fair Isaac by 2.0% during the 2nd 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 in the last quarter. Finally, American Century Companies Inc. grew its stake in Fair Isaac by 2.8% during the 2nd quarter. American Century Companies Inc. now owns 397,389 shares of the technology company's stock valued at $726,411,000 after acquiring an additional 10,771 shares in the last quarter. Institutional investors and hedge funds 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.

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