Fair Isaac (NYSE:FICO) Trading Down 9.3% - Here's Why

Key Points

• Shares fell 9.3% midday to about $940 (from a $1,036.70 close) with ~232,602 shares traded, roughly 32% below average volume.
• The company beat quarterly expectations (EPS $7.33 vs. $7.08; revenue $766M vs. $501M est.) and set FY2026 EPS guidance of 38.17, while analysts maintain a consensus "Moderate Buy" with an average price target of $1,803.14.
• Fair Isaac's board has authorized a $1.5 billion buyback (up to ~5.2% of shares) even as some directors recently sold stock; institutional investors own about 85.75% of the company.

Fair Isaac Corporation (NYSE:FICO - Get Free Report)'s share price was down 9.3% during mid-day trading on Wednesday . The stock traded as low as $960.00 and last traded at $939.9240. Approximately 232,602 shares were traded during trading, a decline of 32% from the average daily volume of 339,962 shares. The stock had previously closed at $1,036.70.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on FICO shares. Weiss Ratings reissued a "hold (c+)" rating on shares of Fair Isaac in a report on Monday, December 29th. Mizuho began coverage on Fair Isaac in a report on Thursday, April 16th. They issued an "outperform" rating and a $1,416.00 price objective for the company. Bank of America began 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. Jefferies Financial Group lifted their price objective on Fair Isaac from $2,100.00 to $2,200.00 and gave the stock a "buy" rating in a report on Friday, January 16th. Finally, Robert W. Baird decreased their price objective on Fair Isaac from $1,960.00 to $1,547.00 and set an "outperform" rating for the company in a report on Tuesday, March 24th. 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, the company currently has an average rating of "Moderate Buy" and a consensus price target of $1,803.14.

Fair Isaac Stock Performance

The stock has a market cap of $22.71 billion, a P/E ratio of 35.21, a P/E/G ratio of 1.02 and a beta of 1.38. The stock has a 50-day moving average price of $1,192.87 and a 200-day moving average price of $1,497.04.

Fair Isaac (NYSE:FICO - Get Free Report) last posted its quarterly earnings data on Wednesday, January 28th. The technology company reported $7.33 earnings per share for the quarter, topping the consensus estimate of $7.08 by $0.25. The company had revenue of $766.00 million for the quarter, compared to analysts' expectations of $501.05 million. Fair Isaac had a net margin of 31.89% and a negative return on equity of 40.98%. Fair Isaac's revenue for the quarter was up 16.4% compared to the same quarter last year. During the same period in the prior year, the business earned $5.79 earnings per share. Fair Isaac has set its FY 2026 guidance at 38.170-38.170 EPS. Sell-side analysts forecast that Fair Isaac Corporation will post 36.39 earnings per share for the current fiscal year.

Fair Isaac announced that its Board of Directors has initiated a stock buyback program on Wednesday, February 25th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the technology company to buy up to 5.2% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In other news, Director Eva Manolis sold 520 shares of the business's stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $1,227.63, for a total value of $638,367.60. Following the completion of the sale, the director directly owned 344 shares in the company, valued at approximately $422,304.72. The trade was a 60.19% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Joanna Rees sold 358 shares of the business's stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $1,360.00, for a total transaction of $486,880.00. Following the completion of the sale, the director owned 11,204 shares of the company's stock, valued at approximately $15,237,440. The trade was a 3.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 3.02% of the company's stock.

Institutional Trading of Fair Isaac

Several hedge funds and other institutional investors have recently bought and sold shares of FICO. Brighton Jones LLC lifted its position in Fair Isaac by 168.7% in the fourth quarter. Brighton Jones LLC now owns 481 shares of the technology company's stock valued at $958,000 after purchasing an additional 302 shares during the last quarter. Great Lakes Advisors LLC lifted its position in Fair Isaac by 5.7% in the first quarter. Great Lakes Advisors LLC now owns 112 shares of the technology company's stock valued at $207,000 after purchasing an additional 6 shares during the last quarter. Woodline Partners LP lifted its position in Fair Isaac by 46.1% in the first quarter. Woodline Partners LP now owns 2,138 shares of the technology company's stock valued at $3,943,000 after purchasing an additional 675 shares during the last quarter. Treasurer of the State of North Carolina lifted its position in Fair Isaac by 18.0% in the second quarter. Treasurer of the State of North Carolina now owns 14,037 shares of the technology company's stock valued at $25,659,000 after purchasing an additional 2,146 shares during the last quarter. Finally, Alliancebernstein L.P. lifted its position in Fair Isaac by 16.1% in the second quarter. Alliancebernstein L.P. now owns 211,947 shares of the technology company's stock valued at $387,431,000 after purchasing an additional 29,408 shares during the last quarter. Institutional investors own 85.75% of the company's stock.

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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