Rheos Capital Works Inc. Takes $22.12 Million Position in Fair Isaac Corporation $FICO

Key Points

• Rheos Capital Works Inc. has acquired a $22.12 million position in Fair Isaac Corporation, purchasing 12,100 shares, making it the firm's 26th largest holding.
• Fair Isaac's stock has faced varying analyst opinions, with target prices dropped by Raymond James and upgraded by Seaport Res Ptn, reflecting differing outlooks on its growth potential.
• The company announced a $1 billion share buyback plan, indicating confidence from leadership that the stock is undervalued amidst a solid quarterly performance exceeding earnings expectations.

Rheos Capital Works Inc. purchased a new position in shares of Fair Isaac Corporation (NYSE:FICO - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 12,100 shares of the technology company's stock, valued at approximately $22,118,000. Fair Isaac comprises approximately 1.3% of Rheos Capital Works Inc.'s investment portfolio, making the stock its 26th largest holding.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Fair Isaac by 29.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 316,780 shares of the technology company's stock worth $584,193,000 after buying an additional 72,518 shares during the last quarter. Nuveen LLC acquired a new stake in shares of Fair Isaac during the 1st quarter valued at approximately $114,864,000. Vanguard Group Inc. raised its position in shares of Fair Isaac by 2.0% during the 1st quarter. Vanguard Group Inc. now owns 2,962,434 shares of the technology company's stock valued at $5,463,202,000 after acquiring an additional 58,740 shares in the last quarter. Congress Asset Management Co. lifted its stake in Fair Isaac by 261.2% during the second quarter. Congress Asset Management Co. now owns 48,778 shares of the technology company's stock worth $89,164,000 after purchasing an additional 35,272 shares during the last quarter. Finally, Junto Capital Management LP acquired a new position in Fair Isaac in the first quarter worth $56,804,000. 85.75% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the stock. Raymond James Financial dropped their target price on shares of Fair Isaac from $2,230.00 to $1,800.00 and set an "outperform" rating on the stock in a report on Thursday, July 31st. Oppenheimer downgraded shares of Fair Isaac from an "outperform" rating to a "market perform" rating in a research report on Monday. Needham & Company LLC reissued a "buy" rating and issued a $1,950.00 target price on shares of Fair Isaac in a report on Thursday, October 2nd. Weiss Ratings restated a "hold (c)" rating on shares of Fair Isaac in a research note on Wednesday, October 8th. Finally, Seaport Res Ptn upgraded Fair Isaac to a "strong-buy" rating in a research report on Wednesday, October 1st. Three research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $2,137.43.

Fair Isaac Trading Down 0.2%

NYSE FICO opened at $1,647.35 on Wednesday. The company has a 50-day moving average price of $1,516.53 and a two-hundred day moving average price of $1,694.93. Fair Isaac Corporation has a 52 week low of $1,300.00 and a 52 week high of $2,402.51. The stock has a market cap of $39.54 billion, a price-to-earnings ratio of 64.43, a price-to-earnings-growth ratio of 1.77 and a beta of 1.35.

Fair Isaac (NYSE:FICO - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The technology company reported $8.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $7.75 by $0.82. Fair Isaac had a negative return on equity of 48.88% and a net margin of 32.80%.The business had revenue of $536.42 million during the quarter, compared to the consensus estimate of $520.40 million. During the same period in the previous year, the firm posted $6.25 earnings per share. The business's revenue was up 19.8% on a year-over-year basis. Fair Isaac has set its FY 2025 guidance at 29.150-29.150 EPS. As a group, equities research analysts expect that Fair Isaac Corporation will post 24.15 earnings per share for the current fiscal year.

Fair Isaac declared that its Board of Directors has initiated a share buyback plan on Thursday, June 19th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the technology company to reacquire up to 2.3% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

Insider Activity

In other news, CEO William J. Lansing sold 6,011 shares of the firm's stock in a transaction on Tuesday, September 9th. The stock was sold at an average price of $1,537.50, for a total transaction of $9,241,912.50. Following the transaction, the chief executive officer directly owned 42,138 shares of the company's stock, valued at approximately $64,787,175. This trade represents a 12.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 3.46% of the company's stock.

Fair Isaac Profile

Fair Isaac Corporation develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Scores and Software. The Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing, as well as associated professional services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.