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

Key Points

• Fair Isaac shares gapped down before Tuesday’s open, falling from a prior close of $1,263.83 to an open of $1,209.29 and last trading near $1,225.89.
• Analyst sentiment remains mostly positive overall, with 10 Buy ratings and 5 Hold ratings, though several firms recently trimmed price targets and Wall Street Zen downgraded the stock to Hold.
• The company recently posted better-than-expected earnings, reporting $12.50 EPS on revenue of $691.68 million, both above estimates, and revenue rose 38.7% year over year.

Fair Isaac Corporation (NYSE:FICO - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $1,263.83, but opened at $1,209.29. Fair Isaac shares last traded at $1,225.8890, with a volume of 23,149 shares traded.

Wall Street Analysts Forecast Growth

FICO has been the topic of a number of recent analyst reports. Barclays dropped their price target on shares of Fair Isaac from $2,400.00 to $1,950.00 and set an "overweight" rating on the stock in a research report on Friday, April 10th. Wall Street Zen lowered shares of Fair Isaac from a "buy" rating to a "hold" rating in a research note on Sunday, June 28th. UBS Group lifted their target price on shares of Fair Isaac from $1,250.00 to $1,270.00 and gave the stock a "neutral" rating in a report on Thursday, July 2nd. Robert W. Baird set a $1,549.00 target price on shares of Fair Isaac in a research report on Wednesday, April 29th. Finally, Wells Fargo & Company decreased their price target on shares of Fair Isaac from $1,650.00 to $1,400.00 and set an "overweight" rating for the company in a report on Thursday, April 30th. Ten equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $1,627.93.

Fair Isaac Stock Performance

The company has a 50-day simple moving average of $1,201.49 and a 200 day simple moving average of $1,255.76. The company has a market capitalization of $28.44 billion, a P/E ratio of 38.66, a P/E/G ratio of 1.12 and a beta of 1.29.

Fair Isaac (NYSE:FICO - Get Free Report) last announced its earnings results on Tuesday, April 28th. The technology company reported $12.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $11.03 by $1.47. Fair Isaac had a net margin of 33.67% and a negative return on equity of 41.04%. The business had revenue of $691.68 million for the quarter, compared to analyst estimates of $630.21 million. During the same quarter in the previous year, the firm posted $7.81 earnings per share. Fair Isaac's revenue was up 38.7% compared to the same quarter last year. Fair Isaac has set its FY 2026 guidance at 40.450-40.450 EPS. As a group, sell-side analysts forecast that Fair Isaac Corporation will post 38 earnings per share for the current year.

Institutional Investors Weigh In On Fair Isaac

A number of institutional investors have recently added to or reduced their stakes in the company. Northwestern Mutual Wealth Management Co. lifted its stake in Fair Isaac by 480,776.3% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,327,664 shares of the technology company's stock worth $5,625,815,000 after purchasing an additional 3,326,972 shares during the period. Capital Research Global Investors bought a new stake in shares of Fair Isaac in the 4th quarter valued at approximately $516,615,000. Norges Bank bought a new stake in shares of Fair Isaac in the 4th quarter valued at approximately $490,209,000. Capital World Investors raised its holdings in shares of Fair Isaac by 10.7% in the 4th quarter. Capital World Investors now owns 894,593 shares of the technology company's stock worth $1,512,417,000 after buying an additional 86,200 shares in the last quarter. Finally, Primecap Management Co. CA raised its holdings in shares of Fair Isaac by 34.7% in the 4th quarter. Primecap Management Co. CA now owns 243,374 shares of the technology company's stock worth $411,453,000 after buying an additional 62,724 shares in the last quarter. 85.75% of the stock is owned by institutional investors and hedge funds.

Fair Isaac Company Profile

Fair Isaac Corporation, commonly known as FICO, is a data analytics and software company best known for its FICO Score, a widely used credit-scoring system that helps lenders assess consumer credit risk. Founded in 1956 by Bill Fair and Earl Isaac, the company has evolved from its origins in statistical credit scoring to a broader focus on predictive analytics, decision management and artificial intelligence-driven solutions for financial services and other industries. FICO is headquartered in San Jose, California, and operates globally, serving clients across North America, Latin America, Europe, the Middle East, Africa and the Asia-Pacific region.

FICO's product portfolio centers on analytics and decisioning technologies.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.