California State Teachers Retirement System Buys 40,336,668 Shares of Fair Isaac Corporation $FICO

Key Points

• CalSTRS reported a dramatic increase in its FICO stake, purchasing 40.34 million additional shares in the second quarter for a reported total of 40.37 million shares. Institutional investors and hedge funds collectively own 85.75% of the stock.
• Analysts maintain a generally positive view, with an average rating of “Moderate Buy” and a $1,553.69 price target, although several firms recently lowered their targets. FICO shares opened at $931.63, well below their 52-week high of $1,998.01.
• FICO exceeded quarterly EPS expectations and grew revenue 25.7% year over year, but its mortgage-scoring business faces increased competition after regulators expanded lenders’ access to VantageScore, potentially pressuring FICO’s volumes, pricing power and margins.

California State Teachers Retirement System raised its stake in shares of Fair Isaac Corporation (NYSE:FICO - Free Report) by 115,419.1% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 40,371,616 shares of the technology company's stock after purchasing an additional 40,336,668 shares during the period. California State Teachers Retirement System owned 186.91% of Fair Isaac worth $48,235,199,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also modified their holdings of FICO. Bayban bought a new stake in shares of Fair Isaac during the 4th quarter worth $25,000. Rakuten Securities Inc. raised its holdings in Fair Isaac by 100.0% in the 2nd quarter. Rakuten Securities Inc. now owns 24 shares of the technology company's stock worth $44,000 after acquiring an additional 12 shares during the period. Elyxium Wealth LLC acquired a new position in Fair Isaac during the 4th quarter worth $42,000. Keating Financial Advisory Services Inc. acquired a new position in Fair Isaac during the 2nd quarter worth $30,000. Finally, Western Wealth Management LLC bought a new stake in Fair Isaac during the first quarter valued at about $29,000. 85.75% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the company. Barclays lowered their price target on Fair Isaac from $1,950.00 to $1,700.00 and set an "overweight" rating on the stock in a research report on Monday, August 10th. Royal Bank Of Canada decreased their target price on Fair Isaac from $2,400.00 to $1,525.00 and set an "outperform" rating for the company in a research note on Thursday, July 30th. Wall Street Zen lowered Fair Isaac from a "buy" rating to a "hold" rating in a report on Sunday, June 28th. Wells Fargo & Company lifted their price target on Fair Isaac from $1,400.00 to $1,450.00 and gave the stock an "overweight" rating in a research report on Thursday, July 30th. Finally, Jefferies Financial Group set a $1,675.00 price target on Fair Isaac in a report on Monday, August 3rd. Eleven equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $1,553.69.

Fair Isaac Trading Down 0.1%

NYSE FICO opened at $931.63 on Monday. Fair Isaac Corporation has a 1-year low of $870.01 and a 1-year high of $1,998.01. The company has a market capitalization of $20.12 billion, a price-to-earnings ratio of 26.91, a PEG ratio of 0.84 and a beta of 1.32. The stock's 50 day moving average is $1,169.37 and its two-hundred day moving average is $1,164.53.

Fair Isaac (NYSE:FICO - Get Free Report) last issued its earnings results on Wednesday, July 29th. The technology company reported $12.18 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $11.76 by $0.42. The business had revenue of $674.19 million during the quarter, compared to analysts' expectations of $679.17 million. Fair Isaac had a negative return on equity of 32.51% and a net margin of 34.05%.Fair Isaac's quarterly revenue was up 25.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $8.57 EPS. Fair Isaac has set its FY 2026 guidance at 42.430-42.430 EPS. On average, analysts predict that Fair Isaac Corporation will post 37.37 earnings per share for the current year.

Key Fair Isaac News

Here are the key news stories impacting Fair Isaac this week:

• Neutral Sentiment: Fair Isaac’s recent quarterly results showed strong underlying performance: earnings exceeded estimates, revenue increased 25.7% year over year, and scores revenue grew 41%. However, the results also highlighted the importance of mortgage-related scoring revenue, making the company more sensitive to increased competition in that market.
• Negative Sentiment: The Federal Housing Finance Agency ordered Fannie Mae and Freddie Mac to allow all lenders to use VantageScore 4.0 for mortgage underwriting. The move expands access to a competing scoring model and challenges FICO’s long-standing position as the primary model used in agency-backed mortgages. Pulte orders Fannie and Freddie to let all lenders use VantageScore
• Negative Sentiment: Investors fear broader VantageScore adoption could reduce FICO’s mortgage-score volumes, pricing power, and profit margins by giving lenders greater choice. The market is reassessing the durability of FICO’s competitive moat and elevated pricing in a business that has been a major growth driver. Mortgage credit-score competition threatens FICO’s core franchise
• Negative Sentiment: FHFA Director Bill Pulte criticized the credit-scoring industry and ordered the policy change, raising concern that additional regulatory pressure could limit FICO’s pricing leverage. The directive was widely cited as the immediate catalyst for the selloff in FICO and credit-bureau stocks. FHFA chief Pulte criticizes the industry

Insider Transactions at Fair Isaac

In other Fair Isaac news, Director Eva Manolis sold 967 shares of the stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $1,400.00, for a total transaction of $1,353,800.00. Following the completion of the transaction, the director directly owned 498 shares in the company, valued at $697,200. This represents a 66.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.02% of the stock is owned by corporate insiders.

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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