Fair Isaac (NYSE:FICO) Sees Strong Trading Volume - What's Next?

Key Points

• Fair Isaac shares traded heavily at approximately $662.68, with 387,498 shares changing hands, while the stock remained far below its 50-day and 200-day moving averages.
• Analysts remain divided but generally constructive: Baird and BMO maintained “outperform” ratings, Wells Fargo retained its “buy” rating, and the consensus is “Moderate Buy” with an average price target of $1,210.38.
• Regulatory and competitive risks are driving investor concern, as potential FHFA adoption of a two-bureau scoring system, VantageScore’s expanded role, and Rocket Mortgage’s use of VantageScore could pressure FICO’s mortgage revenue and pricing power.

Fair Isaac Corporation (NYSE:FICO - Get Free Report) saw strong trading volume on Friday. 387,498 shares were traded during trading, a decline of 3% from the previous session's volume of 400,022 shares. The stock last traded at $662.6770 and had previously closed at $661.75.

More Fair Isaac News

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

• Positive Sentiment: Robert W. Baird maintained an “outperform” rating while cutting its price target to $1,070 from $1,549. The new target still implies substantial upside from recent levels, suggesting the firm believes the sell-off has overshot FICO’s long-term fundamental value. Benzinga report
• Positive Sentiment: Wells Fargo reportedly retained its buy rating, while some retail traders have recently increased purchases of FICO shares. These signals indicate that certain investors view the sharp decline as an opportunity, although they have not offset broader selling pressure. Wells Fargo rating report
• Neutral Sentiment: BMO Capital Markets also kept an “outperform” rating but lowered its price target to $1,150 from $1,550. The target reduction reflects greater near-term uncertainty even though BMO still expects meaningful recovery potential. BMO price target report
• Negative Sentiment: Investors are reacting to reports that the FHFA may move toward a two-bureau mortgage credit-scoring system and has expanded the role of VantageScore. The changes could make VantageScore a more credible alternative to FICO scores and threaten Fair Isaac’s mortgage-scoring revenue, margins, and competitive moat. FHFA proposal report
• Negative Sentiment: Rocket Mortgage’s decision to use VantageScore 4.0 as its preferred model, combined with aggressive pricing from TransUnion, has intensified fears of a mortgage credit-score price war and declining pricing power for FICO.
• Negative Sentiment: Bank of America downgraded FICO to neutral and sharply reduced its price target, adding to analyst concern about regulatory risk. A law firm has also announced an investigation into potential securities-law violations following the sell-off, creating an additional overhang. Bank of America downgrade report

Wall Street Analysts Forecast Growth

FICO has been the topic of several research analyst reports. Credit Suisse Group set a $1,150.00 target price on Fair Isaac in a research note on Wednesday. Weiss Ratings lowered Fair Isaac from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, September 14th. Needham & Company LLC reaffirmed a "buy" rating and issued a $1,650.00 price objective on shares of Fair Isaac in a research report on Thursday, July 30th. Raymond James Financial reiterated an "outperform" rating on shares of Fair Isaac in a research note on Wednesday, September 9th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Fair Isaac in a research report on Tuesday. Ten research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell 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 $1,210.38.

Fair Isaac Price Performance

The company has a market capitalization of $14.31 billion, a PE ratio of 19.15, a price-to-earnings-growth ratio of 0.53 and a beta of 1.35. The firm's fifty day simple moving average is $1,033.98 and its 200 day simple moving average is $1,104.25.

Fair Isaac (NYSE:FICO - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The technology company reported $12.18 earnings per share for the quarter, beating analysts' consensus estimates of $11.76 by $0.42. Fair Isaac had a negative return on equity of 32.51% and a net margin of 34.05%.The business had revenue of $674.19 million during the quarter, compared to analyst estimates of $679.17 million. During the same quarter last year, the business posted $8.57 EPS. The company's revenue was up 25.7% on a year-over-year basis. Fair Isaac has set its FY 2026 guidance at 42.430-42.430 EPS. On average, equities research analysts anticipate that Fair Isaac Corporation will post 37.2 EPS for the current fiscal year.

Insider Transactions at Fair Isaac

In other Fair Isaac news, Director Eva Manolis sold 967 shares of the company's stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $1,400.00, for a total value of $1,353,800.00. Following the sale, the director owned 498 shares in the company, valued at approximately $697,200. This represents a 66.01% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 3.02% of the company's stock.

Hedge Funds Weigh In On Fair Isaac

Several large investors have recently made changes to their positions in FICO. Canopy Partners LLC raised its stake in Fair Isaac by 2.3% in the fourth quarter. Canopy Partners LLC now owns 363 shares of the technology company's stock valued at $614,000 after purchasing an additional 8 shares in the last quarter. Heartland Bank & Trust Co grew its stake in Fair Isaac by 2.9% in the 1st quarter. Heartland Bank & Trust Co now owns 468 shares of the technology company's stock worth $500,000 after buying an additional 13 shares in the last quarter. Harbour Investments Inc. grew its stake in Fair Isaac by 82.4% in the 4th quarter. Harbour Investments Inc. now owns 31 shares of the technology company's stock worth $52,000 after buying an additional 14 shares in the last quarter. FNY Investment Advisers LLC increased its holdings in shares of Fair Isaac by 3.6% in the 2nd quarter. FNY Investment Advisers LLC now owns 398 shares of the technology company's stock worth $475,000 after buying an additional 14 shares during the last quarter. Finally, NewEdge Advisors LLC raised its position in shares of Fair Isaac by 4.5% during the 2nd quarter. NewEdge Advisors LLC now owns 324 shares of the technology company's stock valued at $387,000 after buying an additional 14 shares in the last quarter. 85.75% of the stock is currently owned by institutional investors and hedge funds.

About Fair Isaac

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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