Fair Isaac (NYSE:FICO) Shares Gap Down on Analyst Downgrade

Fair Isaac Corporation (NYSE:FICO - Get Free Report)'s stock price gapped down prior to trading on Wednesday after Barclays lowered their price target on the stock from $2,250.00 to $2,000.00. The stock had previously closed at $1,703.17, but opened at $1,665.01. Barclays currently has an overweight rating on the stock. Fair Isaac shares last traded at $1,670.00, with a volume of 87,145 shares.

Several other analysts have also recently issued reports on the company. Robert W. Baird raised Fair Isaac from a "neutral" rating to an "outperform" rating and dropped their target price for the company from $2,021.00 to $1,900.00 in a research report on Wednesday, May 28th. Wells Fargo & Company dropped their target price 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. Needham & Company LLC reaffirmed a "buy" rating and set a $2,575.00 target price on shares of Fair Isaac in a research report on Friday, June 20th. Baird R W raised Fair Isaac from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, May 28th. Finally, Oppenheimer raised their price objective on Fair Isaac from $2,293.00 to $2,300.00 and gave the stock an "outperform" rating in a research report on Tuesday. Two research analysts have rated the stock with a hold rating, ten have given a buy rating and two have given a strong buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Buy" and an average target price of $2,283.54.

Insiders Place Their Bets

In related news, CFO Steven P. Weber sold 1,000 shares of the firm's stock in a transaction on Monday, June 9th. The stock was sold at an average price of $1,738.25, for a total value of $1,738,250.00. Following the completion of the transaction, the chief financial officer owned 1,862 shares in the company, valued at $3,236,621.50. This trade represents a 34.94% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO William J. Lansing sold 3,811 shares of the firm's stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $1,565.99, for a total value of $5,967,987.89. Following the completion of the transaction, the chief executive officer owned 44,338 shares of the company's stock, valued at $69,432,864.62. This trade represents a 7.92% decrease in their position. The disclosure for this sale can be found here. Insiders sold 23,906 shares of company stock worth $45,222,913 over the last quarter. Company insiders own 3.46% of the company's stock.

Hedge Funds Weigh In On Fair Isaac

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Financiere des Professionnels Fonds d investissement inc. purchased a new position in Fair Isaac in the 2nd quarter worth $250,000. IFM Investors Pty Ltd raised its stake in Fair Isaac by 3.4% in the 2nd quarter. IFM Investors Pty Ltd now owns 4,745 shares of the technology company's stock worth $8,674,000 after acquiring an additional 154 shares during the last quarter. Oliver Lagore Vanvalin Investment Group purchased a new position in shares of Fair Isaac during the 2nd quarter valued at about $417,000. Contravisory Investment Management Inc. raised its stake in shares of Fair Isaac by 50.2% during the 2nd quarter. Contravisory Investment Management Inc. now owns 697 shares of the technology company's stock valued at $1,274,000 after buying an additional 233 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC raised its stake in shares of Fair Isaac by 74.9% during the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 8,895 shares of the technology company's stock valued at $16,503,000 after buying an additional 3,810 shares during the last quarter. Hedge funds and other institutional investors own 85.75% of the company's stock.

Fair Isaac Stock Performance

The stock has a 50 day simple moving average of $1,855.28 and a two-hundred day simple moving average of $1,865.49. The firm has a market cap of $38.37 billion, a PE ratio of 67.89, a price-to-earnings-growth ratio of 2.55 and a beta of 1.28.

Fair Isaac (NYSE:FICO - Get Free Report) last released its quarterly earnings data on Tuesday, April 29th. The technology company reported $7.81 earnings per share for the quarter, beating analysts' consensus estimates of $7.33 by $0.48. The business had revenue of $498.74 million during the quarter, compared to analyst estimates of $500.45 million. Fair Isaac had a negative return on equity of 51.41% and a net margin of 31.36%. The company's revenue was up 15.0% on a year-over-year basis. During the same quarter last year, the business posted $6.14 EPS. Equities research analysts forecast that Fair Isaac Corporation will post 24.15 earnings per share for the current year.

Fair Isaac declared that its Board of Directors has authorized a stock buyback plan on Thursday, June 19th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the technology company to reacquire up to 2.3% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's leadership believes its shares are undervalued.

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.