Fair Isaac (NYSE:FICO) Stock Price Down 12% Following Analyst Downgrade

Key Points

• FICO shares plunged about 12% intraday after Barclays cut its price target from $2,400 to $1,950, with the stock trading as low as roughly $944 following the note.
• The stock still carries a consensus rating of “Moderate Buy” (nine Buys, five Holds) and a consensus price target of $1,832.92, though analysts are split—UBS cut its target to $1,350 while Jefferies and Bank of America maintain higher targets.
• Fundamentals remain strong: FICO beat quarterly estimates (EPS $7.33 vs. $7.08; revenue $766M vs. $501M) and the board authorized a $1.5 billion share buyback (up to ~5.2% of shares outstanding).

Fair Isaac Corporation (NYSE:FICO - Get Free Report) shares were down 12% during trading on Friday after Barclays lowered their price target on the stock from $2,400.00 to $1,950.00. Barclays currently has an overweight rating on the stock. Fair Isaac traded as low as $999.01 and last traded at $943.9390. Approximately 27,636 shares traded hands during mid-day trading, a decline of 92% from the average daily volume of 325,383 shares. The stock had previously closed at $1,072.35.

FICO has been the subject of several other research reports. UBS Group cut their price objective on Fair Isaac from $1,500.00 to $1,350.00 and set a "neutral" rating for the company in a report on Wednesday, March 11th. Jefferies Financial Group upped their price objective on Fair Isaac from $2,100.00 to $2,200.00 and gave the company a "buy" rating in a report on Friday, January 16th. Weiss Ratings restated a "hold (c+)" rating on shares of Fair Isaac in a report on Monday, December 29th. Needham & Company LLC restated a "buy" rating on shares of Fair Isaac in a report on Thursday, February 26th. Finally, Bank of America started coverage on Fair Isaac in a report on Tuesday, February 17th. They issued a "buy" rating and a $1,900.00 price objective for the company. Nine research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,832.92.

Insider Buying and Selling at Fair Isaac

In other news, Director Eva Manolis sold 520 shares of the company's stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $1,227.63, for a total transaction of $638,367.60. Following the completion of the sale, the director directly owned 344 shares of the company's stock, valued at $422,304.72. This represents a 60.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Joanna Rees sold 358 shares of the company's stock in a transaction on Friday, February 13th. The shares were sold at an average price of $1,360.00, for a total value of $486,880.00. Following the sale, the director directly owned 11,204 shares of the company's stock, valued at approximately $15,237,440. This represents a 3.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 3.02% of the company's stock.

Institutional Investors Weigh In On Fair Isaac

Several hedge funds have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of 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 valued at $5,625,815,000 after purchasing an additional 3,326,972 shares during the last quarter. Vanguard Group Inc. lifted its holdings in shares of Fair Isaac by 2.4% during the third quarter. Vanguard Group Inc. now owns 3,069,749 shares of the technology company's stock valued at $4,593,971,000 after purchasing an additional 72,224 shares during the last quarter. State Street Corp lifted its holdings in shares of Fair Isaac by 1.2% during 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 last quarter. Capital World Investors lifted its stake in 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 acquiring an additional 86,200 shares in the last quarter. Finally, Geode Capital Management LLC lifted its stake in Fair Isaac by 1.3% in the 4th quarter. Geode Capital Management LLC now owns 719,120 shares of the technology company's stock worth $1,213,620,000 after acquiring an additional 8,886 shares in the last quarter. 85.75% of the stock is owned by hedge funds and other institutional investors.

Fair Isaac Stock Performance

The firm has a 50 day moving average of $1,251.36 and a 200-day moving average of $1,529.53. The stock has a market capitalization of $22.06 billion, a PE ratio of 34.47, a P/E/G ratio of 1.05 and a beta of 1.38.

Fair Isaac (NYSE:FICO - Get Free Report) last announced its quarterly earnings data on Wednesday, January 28th. The technology company reported $7.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $7.08 by $0.25. The firm had revenue of $766.00 million during the quarter, compared to the consensus estimate of $501.05 million. Fair Isaac had a negative return on equity of 40.98% and a net margin of 31.89%.The business's revenue for the quarter was up 16.4% on a year-over-year basis. During the same period in the prior year, the business earned $5.79 EPS. Fair Isaac has set its FY 2026 guidance at 38.170-38.170 EPS. On average, sell-side analysts predict 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 program on Wednesday, February 25th that allows the company to repurchase $1.50 billion in shares. This repurchase authorization allows the technology company to purchase up to 5.2% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its shares are undervalued.

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.

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