Capital World Investors Acquires 725,432 Shares of Fair Isaac Corporation $FICO

Key Points

• Capital World Investors increased its stake in Fair Isaac by 874.4%, buying an additional 725,432 shares to own 808,393 shares (about 3.41% of the company) valued at roughly $1.21 billion.
• The Board authorized a $1.5 billion share repurchase program, permitting buybacks of up to 5.2% of outstanding shares, signaling management believes the stock may be undervalued.
• FICO topped expectations with quarterly EPS of $7.33 (vs. $7.08 consensus) and revenue of $766 million (up 16.4% YoY), while analysts' average price target sits at about $1,994.62 with a "Moderate Buy" consensus.

Capital World Investors increased its position in Fair Isaac Corporation (NYSE:FICO - Free Report) by 874.4% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 808,393 shares of the technology company's stock after acquiring an additional 725,432 shares during the quarter. Capital World Investors owned about 3.41% of Fair Isaac worth $1,209,784,000 at the end of the most recent quarter.

A number of other institutional investors have also bought and sold shares of the business. Artisan Partners Limited Partnership bought a new stake in Fair Isaac in the 2nd quarter valued at $84,295,000. Tokio Marine Asset Management Co. Ltd. raised its position in Fair Isaac by 111.6% during the third quarter. Tokio Marine Asset Management Co. Ltd. now owns 1,947 shares of the technology company's stock valued at $2,914,000 after purchasing an additional 1,027 shares during the period. 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 worth $958,000 after buying an additional 302 shares during the last quarter. Ashton Thomas Private Wealth LLC bought a new stake in shares of Fair Isaac in the 3rd quarter worth about $627,000. Finally, Azzad Asset Management Inc. ADV purchased a new position in shares of Fair Isaac during the third quarter valued at approximately $705,000. Hedge funds and other institutional investors own 85.75% of the company's stock.

Insiders Place Their Bets

In related news, Director Eva Manolis sold 520 shares of Fair Isaac stock in a transaction 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 sale, the director owned 344 shares of the company's stock, valued at approximately $422,304.72. This trade represents a 60.19% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Joanna Rees sold 358 shares of the business's stock in a transaction dated 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 sale, the director directly owned 11,204 shares of the company's stock, valued at $15,237,440. This represents a 3.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 2,825 shares of company stock worth $4,657,565. Corporate insiders own 3.02% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have commented on the company. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Fair Isaac in a research report on Monday, December 29th. Jefferies Financial Group boosted their target price on shares of Fair Isaac from $2,100.00 to $2,200.00 and gave the company a "buy" rating in a research note on Friday, January 16th. The Goldman Sachs Group reduced their price target on shares of Fair Isaac from $2,070.00 to $1,777.00 and set a "buy" rating on the stock in a research note on Monday, February 2nd. Zacks Research lowered shares of Fair Isaac from a "strong-buy" rating to a "hold" rating in a report on Monday, December 1st. Finally, Wells Fargo & Company boosted their price objective on shares of Fair Isaac from $2,400.00 to $2,500.00 and gave the company an "overweight" rating in a research report on Wednesday, January 14th. Nine analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $1,994.62.

Fair Isaac Stock Performance

FICO stock opened at $1,282.35 on Wednesday. The firm has a market cap of $30.42 billion, a price-to-earnings ratio of 47.46, a PEG ratio of 1.39 and a beta of 1.28. Fair Isaac Corporation has a one year low of $1,193.09 and a one year high of $2,217.60. The firm has a 50-day simple moving average of $1,469.69 and a two-hundred day simple moving average of $1,595.35.

Fair Isaac (NYSE:FICO - Get Free Report) last issued its quarterly earnings results 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. Fair Isaac had a negative return on equity of 40.98% and a net margin of 31.89%.The business had revenue of $766.00 million during the quarter, compared to the consensus estimate of $501.05 million. During the same quarter last year, the company earned $5.79 earnings per share. The company's quarterly revenue was up 16.4% on a year-over-year basis. Fair Isaac has set its FY 2026 guidance at 38.170-38.170 EPS. As a group, equities analysts predict that Fair Isaac Corporation will post 24.15 earnings per share for the current fiscal year.

Fair Isaac announced that its Board of Directors has initiated a share repurchase program on Wednesday, February 25th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the technology company to repurchase up to 5.2% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's leadership believes its shares are undervalued.

Fair Isaac 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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