Fair Isaac (NYSE:FICO) Reaches New 12-Month Low - Here's Why

Fair Isaac Corporation (NYSE:FICO - Get Free Report) reached a new 52-week low during mid-day trading on Wednesday. The stock traded as low as $595.19 and last traded at $615.0150, with a volume of 4901327 shares traded. The stock had previously closed at $840.89.

Key Fair Isaac News

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

• Negative Sentiment: The Federal Housing Finance Agency said Fannie Mae and Freddie Mac will move toward a simplified mortgage-pricing framework that places VantageScore 4.0 on a comparable pricing basis with Classic FICO. This opens the government-backed mortgage market to FICO’s principal rival and threatens its near-monopoly. Fair Isaac Stock Tumbles as FHFA's Pulte Moves to Simplify Mortgage Pricing
• Negative Sentiment: Investors fear greater competition could pressure FICO’s score-pricing fees, mortgage-sector market share and long-term earnings growth. The development also challenges the valuation premium built around FICO’s entrenched position in mortgage underwriting. Fair Isaac stock plunges after Fannie and Freddie open door to FICO rival
• Negative Sentiment: TransUnion’s extension of promotional 99-cent pricing for VantageScore 4.0 added to concerns that a lower-cost competitor could accelerate adoption and make it harder for FICO to sustain current pricing. FICO stock slides after TransUnion extends 99-cent pricing
• Neutral Sentiment: Rosen Law Firm announced an investigation into potential securities claims alleging that Fair Isaac may have issued misleading business information. The announcement does not establish wrongdoing, but it could create legal costs and additional uncertainty for shareholders. Rosen Law Firm FICO securities investigation

Analysts Set New Price Targets

A number of research analysts have recently commented on the stock. Barclays decreased their price objective on shares of Fair Isaac from $1,950.00 to $1,700.00 and set an "overweight" rating for the company in a research report on Monday, August 10th. Wells Fargo & Company dropped their target price on shares of Fair Isaac from $1,450.00 to $1,350.00 and set an "overweight" rating on the stock in a report on Tuesday, September 22nd. Weiss Ratings downgraded shares of Fair Isaac from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, September 14th. Raymond James Financial reiterated an "outperform" rating on shares of Fair Isaac in a report on Wednesday, September 9th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Fair Isaac in a research report on Tuesday. Eleven investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $1,524.62.

Fair Isaac Stock Performance

The company has a fifty day moving average of $1,057.43 and a two-hundred day moving average of $1,111.06. The firm has a market capitalization of $13.28 billion, a price-to-earnings ratio of 17.76, a PEG ratio of 0.76 and a beta of 1.32.

Fair Isaac (NYSE:FICO - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The technology company reported $12.18 EPS for the quarter, beating analysts' consensus estimates of $11.76 by $0.42. The firm had revenue of $674.19 million for the quarter, compared to analyst estimates of $679.17 million. Fair Isaac had a negative return on equity of 32.51% and a net margin of 34.05%.The company's revenue for the quarter was up 25.7% on a year-over-year basis. 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. Equities analysts forecast that Fair Isaac Corporation will post 37.2 EPS for the current year.

Insider Activity at Fair Isaac

In related news, Director Eva Manolis sold 967 shares of the firm's stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $1,400.00, for a total transaction of $1,353,800.00. Following the transaction, the director directly owned 498 shares of the company's stock, valued at approximately $697,200. This trade represents a 66.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 3.02% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Envestnet Portfolio Solutions Inc. raised its position in shares of Fair Isaac by 4.8% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 1,592 shares of the technology company's stock valued at $1,902,000 after buying an additional 73 shares in the last quarter. Capstone Financial Advisors Inc. bought a new stake in shares of Fair Isaac in the second quarter valued at approximately $208,000. Sequoia Financial Advisors LLC grew its position in Fair Isaac by 15.4% during the second quarter. Sequoia Financial Advisors LLC now owns 1,089 shares of the technology company's stock worth $1,301,000 after buying an additional 145 shares in the last quarter. National Pension Service grew its position in Fair Isaac by 14.0% during the second quarter. National Pension Service now owns 42,022 shares of the technology company's stock worth $50,207,000 after buying an additional 5,147 shares in the last quarter. Finally, Pinnacle Wealth Management Advisory Group LLC bought a new position in Fair Isaac during the 2nd quarter worth $215,000. 85.75% of the stock is owned by institutional investors.

Fair Isaac Company Profile

Fair Isaac Corporation, known as FICO, develops analytics and software used by businesses to make decisions about credit, risk, fraud, customer engagement and other operational activities. The company is best known for the FICO Score, a credit-risk scoring system used by lenders to help evaluate consumer creditworthiness.

FICO's offerings include credit scoring solutions, decision-management software, fraud detection and identity verification tools, and analytics platforms. Its products are used by financial institutions, insurers, retailers, telecommunications companies and other organizations to automate decisions, manage risk and improve customer relationships.

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