Fair Isaac Corporation $FICO Stake Increased by Kensico Capital Management Corp

Key Points

• Kensico Capital increased its stake in Fair Isaac (FICO) by 30.4% to 324,880 shares during Q3, making FICO roughly its third-largest holding.
• The FICO board authorized a $1.5 billion share buyback (up to about 5.2% of outstanding shares), a signal management may view the stock as undervalued.
• FICO topped estimates last quarter with EPS $7.33 (vs. $7.08 est.) and revenue of $766M (vs. $501M est.), while analysts maintain a consensus "Moderate Buy" and an average price target near $1,972.

Kensico Capital Management Corp boosted its holdings in Fair Isaac Corporation (NYSE:FICO - Free Report) by 30.4% in the 3rd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 324,880 shares of the technology company's stock after acquiring an additional 75,700 shares during the quarter. Fair Isaac comprises approximately 7.5% of Kensico Capital Management Corp's portfolio, making the stock its 3rd biggest holding. Kensico Capital Management Corp owned about 1.37% of Fair Isaac worth $486,193,000 as of its most recent SEC filing.

Several other institutional investors also recently made changes to their positions in the stock. Ransom Advisory Ltd acquired a new stake in shares of Fair Isaac in the third quarter valued at about $30,000. Meeder Asset Management Inc. increased its holdings in Fair Isaac by 66.7% in the third quarter. Meeder Asset Management Inc. now owns 20 shares of the technology company's stock valued at $30,000 after buying an additional 8 shares in the last quarter. Root Financial Partners LLC acquired a new stake in shares of Fair Isaac during the 3rd quarter valued at approximately $30,000. Cornerstone Planning Group LLC boosted its stake in shares of Fair Isaac by 280.0% during the 3rd quarter. Cornerstone Planning Group LLC now owns 19 shares of the technology company's stock worth $30,000 after acquiring an additional 14 shares in the last quarter. Finally, Strengthening Families & Communities LLC acquired a new stake in shares of Fair Isaac in the 3rd quarter worth approximately $34,000. 85.75% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Fair Isaac news, 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 transaction, the director owned 11,204 shares in the company, valued at $15,237,440. The trade was a 3.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Steven P. Weber sold 1,426 shares of the stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $1,810.00, for a total value of $2,581,060.00. Following the completion of the sale, the chief financial officer owned 2,804 shares of the company's stock, valued at approximately $5,075,240. This trade represents a 33.71% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 2,304 shares of company stock worth $3,706,308 over the last quarter. 3.02% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

FICO has been the subject of several research reports. Needham & Company LLC reaffirmed a "buy" rating on shares of Fair Isaac in a report on Thursday, February 26th. The Goldman Sachs Group cut their price target on Fair Isaac from $2,070.00 to $1,777.00 and set a "buy" rating for the company in a research note on Monday, February 2nd. Weiss Ratings restated a "hold (c+)" rating on shares of Fair Isaac in a report on Monday, December 29th. Zacks Research cut shares of Fair Isaac from a "strong-buy" rating to a "hold" rating in a research report on Monday, December 1st. Finally, UBS Group lowered their price target on shares of Fair Isaac from $1,500.00 to $1,350.00 and set a "neutral" rating on the stock in a research report on Wednesday, March 11th. Nine research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $1,972.31.

Fair Isaac Price Performance

NYSE:FICO opened at $1,131.13 on Monday. The firm has a market cap of $26.83 billion, a PE ratio of 41.86, a P/E/G ratio of 1.09 and a beta of 1.28. The firm has a 50 day simple moving average of $1,436.84 and a 200-day simple moving average of $1,589.15. Fair Isaac Corporation has a 1-year low of $1,068.67 and a 1-year high of $2,217.60.

Fair Isaac (NYSE:FICO - Get Free Report) last announced its earnings results on Wednesday, January 28th. The technology company reported $7.33 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $7.08 by $0.25. The firm had revenue of $766.00 million for the quarter, compared to analyst estimates 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 was up 16.4% compared to the same quarter last year. During the same quarter last year, the business earned $5.79 earnings per share. Fair Isaac has set its FY 2026 guidance at 38.170-38.170 EPS. As a group, sell-side analysts expect that Fair Isaac Corporation will post 24.15 earnings per share for the current fiscal year.

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