Fair Isaac (NYSE:FICO) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Fair Isaac from a “hold” to a “buy” rating, adding to a generally positive analyst backdrop for the stock.
• Analyst sentiment remains favorable overall: 10 analysts rate FICO a Buy and 5 rate it a Hold, with a consensus rating of “Moderate Buy” and an average price target of $1,655.07.
• Fair Isaac reported better-than-expected quarterly results, posting $12.50 EPS on revenue of $691.68 million, while also authorizing a $1.5 billion share buyback that could repurchase up to 5.2% of its shares.

Fair Isaac (NYSE:FICO - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday.

FICO has been the subject of a number of other reports. Wells Fargo & Company lowered their price objective on shares of Fair Isaac from $1,650.00 to $1,400.00 and set an "overweight" rating for the company in a research note on Thursday, April 30th. The Goldman Sachs Group decreased their price target on shares of Fair Isaac from $1,770.00 to $1,528.00 and set a "buy" rating for the company in a research report on Thursday, April 2nd. Mizuho initiated coverage on shares of Fair Isaac in a research report on Thursday, April 16th. They set an "outperform" rating and a $1,416.00 price target for the company. JPMorgan Chase & Co. decreased their price target on shares of Fair Isaac from $1,325.00 to $1,225.00 and set a "neutral" rating for the company in a research report on Thursday, April 30th. Finally, Raymond James Financial reissued an "outperform" rating and set a $1,750.00 price target on shares of Fair Isaac in a research report on Wednesday, April 29th. Ten equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, Fair Isaac has a consensus rating of "Moderate Buy" and a consensus price target of $1,655.07.

Fair Isaac Price Performance

NYSE:FICO opened at $1,125.84 on Friday. Fair Isaac has a 1-year low of $870.01 and a 1-year high of $2,217.60. The company has a 50-day moving average of $1,132.67 and a 200 day moving average of $1,450.16. The firm has a market cap of $26.11 billion, a PE ratio of 35.66, a price-to-earnings-growth ratio of 1.00 and a beta of 1.24.

Fair Isaac (NYSE:FICO - Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The technology company reported $12.50 earnings per share 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 company had revenue of $691.68 million during the quarter, compared to analyst estimates of $630.21 million. During the same period in the prior year, the firm earned $7.81 earnings per share. The firm's revenue for the quarter 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. Sell-side analysts anticipate that Fair Isaac will post 37.99 EPS for the current fiscal year.

Fair Isaac announced that its board has approved a stock buyback plan on Wednesday, February 25th that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the technology company to purchase up to 5.2% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board believes its stock is undervalued.

Insider Activity

In other Fair Isaac news, Director Eva Manolis sold 520 shares of the stock in a transaction dated Wednesday, February 25th. The shares were 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 approximately $422,304.72. This represents a 60.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Joanna Rees sold 358 shares of the company's stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $1,360.00, for a total transaction of $486,880.00. Following the transaction, the director owned 11,204 shares in the company, valued at approximately $15,237,440. This trade represents a 3.10% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 3.02% of the company's stock.

Hedge Funds Weigh In On Fair Isaac

Hedge funds have recently modified their holdings of the stock. Bayban acquired a new position in shares of Fair Isaac during the fourth quarter valued at about $25,000. Physician Wealth Advisors Inc. increased its holdings in shares of Fair Isaac by 166.7% during the fourth quarter. Physician Wealth Advisors Inc. now owns 16 shares of the technology company's stock valued at $27,000 after acquiring an additional 10 shares in the last quarter. Meeder Asset Management Inc. increased its holdings in shares of Fair Isaac by 66.7% during the third quarter. Meeder Asset Management Inc. now owns 20 shares of the technology company's stock valued at $30,000 after acquiring an additional 8 shares in the last quarter. Root Financial Partners LLC acquired a new position in shares of Fair Isaac during the third quarter valued at about $30,000. Finally, Cornerstone Planning Group LLC increased its holdings in shares of Fair Isaac by 280.0% during the third quarter. Cornerstone Planning Group LLC now owns 19 shares of the technology company's stock valued at $30,000 after acquiring an additional 14 shares in the last quarter. Institutional investors and hedge funds own 85.75% of the company's stock.

About Fair Isaac

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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