Fair Isaac (NYSE:FICO) Shares Gap Down - Should You Sell?

Key Points

• Fair Isaac Corporation's stock price gapped down from a previous close of $1,879.55 to open at $1,821.39 amid various analyst price target changes.
• Analysts from Oppenheimer, Seaport Res Ptn, and Wells Fargo have set new price targets ranging up to $2,300.00, while the consensus target is $2,130.29.
• The company reported a significant earnings beat with $8.57 EPS against expectations of $7.75, contributing to a year-over-year revenue increase of 19.8%.

Fair Isaac Corporation (NYSE:FICO - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $1,879.55, but opened at $1,821.39. Fair Isaac shares last traded at $1,826.62, with a volume of 109,339 shares traded.

Analysts Set New Price Targets

FICO has been the topic of a number of research analyst reports. Oppenheimer cut their price target on Fair Isaac from $2,300.00 to $1,953.00 and set an "outperform" rating on the stock in a report on Thursday, July 31st. Seaport Res Ptn upgraded Fair Isaac to a "strong-buy" rating in a report on Wednesday, October 1st. Wells Fargo & Company set a $2,300.00 price target on Fair Isaac in a report on Wednesday, October 1st. UBS Group increased their price target on Fair Isaac from $1,590.00 to $1,640.00 and gave the stock a "neutral" rating in a report on Monday, September 15th. Finally, Jefferies Financial Group reiterated a "buy" rating on shares of Fair Isaac in a report on Thursday, July 17th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Fair Isaac has a consensus rating of "Moderate Buy" and a consensus target price of $2,130.29.

Fair Isaac Stock Performance

The firm has a 50 day simple moving average of $1,490.21 and a two-hundred day simple moving average of $1,702.18. The firm has a market capitalization of $41.48 billion, a P/E ratio of 67.70, a PEG ratio of 2.08 and a beta of 1.35.

Fair Isaac (NYSE:FICO - Get Free Report) last announced its earnings results on Wednesday, July 30th. The technology company reported $8.57 earnings per share (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 firm had revenue of $536.42 million during the quarter, compared to analyst estimates of $520.40 million. During the same period last year, the firm posted $6.25 EPS. The business's revenue was up 19.8% compared to the same quarter last year. Fair Isaac has set its FY 2025 guidance at 29.150-29.150 EPS. Sell-side analysts anticipate that Fair Isaac Corporation will post 24.15 earnings per share for the current year.

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

Insider Activity

In other news, CEO William J. Lansing sold 6,011 shares of the firm's stock in a transaction on Tuesday, September 9th. The stock was sold at an average price of $1,537.50, for a total transaction of $9,241,912.50. Following the completion of the sale, the chief executive officer directly owned 42,138 shares of the company's stock, valued at $64,787,175. This trade represents a 12.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 3.46% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Fair Isaac

Several large investors have recently made changes to their positions in FICO. Westside Investment Management Inc. purchased a new stake in Fair Isaac in the 2nd quarter worth about $26,000. ORG Partners LLC purchased a new stake in Fair Isaac in the 2nd quarter worth about $27,000. Hilltop National Bank purchased a new stake in Fair Isaac in the 2nd quarter worth about $27,000. Geo Capital Gestora de Recursos Ltd purchased a new stake in Fair Isaac in the 1st quarter worth about $28,000. Finally, N.E.W. Advisory Services LLC purchased a new stake in Fair Isaac in the 1st quarter worth about $30,000. 85.75% of the stock is owned by hedge funds and other institutional investors.

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.

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