Oppenheimer Issues Pessimistic Forecast for Fair Isaac (NYSE:FICO) Stock Price

Key Points

• Oppenheimer has reduced its target price for Fair Isaac's stock from $2,300.00 to $1,953.00, suggesting a potential upside of 37.60% from its current price, while maintaining an "outperform" rating.
• Despite Oppenheimer's downgrade, the consensus among analysts remains positive, with a rating of "Buy" and an average price target of $2,193.86 for Fair Isaac's stock.
• The company reported strong earnings, with $8.57 earnings per share, surpassing estimates, and a 19.8% year-over-year revenue growth of $536.42 million.

Fair Isaac (NYSE:FICO - Get Free Report) had its price target cut by equities research analysts at Oppenheimer from $2,300.00 to $1,953.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage currently has an "outperform" rating on the technology company's stock. Oppenheimer's price target indicates a potential upside of 41.17% from the company's previous close.

A number of other equities analysts have also recently weighed in on FICO. Jefferies Financial Group reaffirmed a "buy" rating on shares of Fair Isaac in a research report on Thursday, July 17th. BMO Capital Markets upgraded Fair Isaac to a "strong-buy" rating in a research note on Thursday, July 10th. Robert W. Baird raised Fair Isaac from a "neutral" rating to an "outperform" rating and dropped their price objective for the company from $2,021.00 to $1,900.00 in a research note on Wednesday, May 28th. Barclays cut their price objective on Fair Isaac from $2,250.00 to $2,000.00 and set an "overweight" rating on the stock in a report on Wednesday, July 9th. Finally, Griffin Securities set a $2,000.00 target price on Fair Isaac in a report on Wednesday, July 9th. Two analysts have rated the stock with a hold rating, ten have given a buy rating and two have issued a strong buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $2,163.14.

Fair Isaac Price Performance

Shares of FICO stock traded down $53.25 during trading on Thursday, hitting $1,383.47. 798,467 shares of the stock traded hands, compared to its average volume of 395,901. The firm has a market capitalization of $33.67 billion, a P/E ratio of 54.11, a price-to-earnings-growth ratio of 2.23 and a beta of 1.28. Fair Isaac has a 52-week low of $1,350.00 and a 52-week high of $2,402.51. The firm's fifty day moving average price is $1,687.81 and its 200-day moving average price is $1,811.36.

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, beating the consensus estimate of $7.75 by $0.82. Fair Isaac had a net margin of 32.80% and a negative return on equity of 48.88%. The firm had revenue of $536.42 million for the quarter, compared to analyst estimates of $520.40 million. During the same period in the previous year, the firm earned $6.25 EPS. Fair Isaac's revenue was up 19.8% on a year-over-year basis. As a group, equities research analysts expect that Fair Isaac will post 24.15 earnings per share for the current year.

Fair Isaac declared that its board has approved a share buyback plan on Thursday, June 19th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the technology company to purchase up to 2.3% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board of directors believes its stock is undervalued.

Insiders Place Their Bets

In related news, Director Marc F. Mcmorris sold 797 shares of the firm's stock in a transaction that occurred on Friday, May 9th. The stock was sold at an average price of $2,087.50, for a total value of $1,663,737.50. Following the completion of the transaction, the director directly owned 242 shares of the company's stock, valued at $505,175. This trade represents a 76.71% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Steven P. Weber sold 1,000 shares of the firm's stock in a transaction on Monday, June 9th. The shares were sold at an average price of $1,738.25, for a total value of $1,738,250.00. Following the completion of the transaction, the chief financial officer owned 1,862 shares of the company's stock, valued at approximately $3,236,621.50. This represents a 34.94% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 19,829 shares of company stock worth $36,836,320. Company insiders own 3.46% of the company's stock.

Institutional Trading of Fair Isaac

Institutional investors and hedge funds have recently modified their holdings of the business. Pinnacle Holdings LLC acquired a new position in Fair Isaac in the 4th quarter valued at $26,000. ORG Partners LLC acquired a new position in Fair Isaac in the second quarter valued at $27,000. Hilltop National Bank purchased a new position in Fair Isaac during the second quarter worth about $27,000. Geo Capital Gestora de Recursos Ltd acquired a new stake in Fair Isaac in the 1st quarter worth about $28,000. Finally, N.E.W. Advisory Services LLC purchased a new stake in Fair Isaac in the 1st quarter valued at about $30,000. Hedge funds and other institutional investors own 85.75% of the company's stock.

Fair Isaac Company 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.