Fair Isaac (NYSE:FICO) Shares Gap Down on Analyst Downgrade

Key Points

• Fair Isaac shares fell sharply after JPMorgan cut its price target from $1,530 to $900 and maintained a neutral rating. The stock opened at $749.65 after closing at $815.31.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $1,014; recent actions included downgrades from Bank of America and Zacks Research.
• FICO reported quarterly earnings of $12.18 per share, beating estimates, while revenue rose 25.7% year over year to $674.19 million. Institutional investors own approximately 85.75% of the company.

Fair Isaac Corporation (NYSE:FICO - Get Free Report)'s stock price gapped down prior to trading on Monday after JPMorgan Chase & Co. lowered their price target on the stock from $1,530.00 to $900.00. The stock had previously closed at $815.31, but opened at $749.65. JPMorgan Chase & Co. currently has a neutral rating on the stock. Fair Isaac shares last traded at $757.7590, with a volume of 116,366 shares changing hands.

FICO has been the subject of a number of other research reports. Royal Bank Of Canada cut their price objective on shares of Fair Isaac from $1,525.00 to $1,045.00 and set an "outperform" rating for the company in a research report on Friday, October 16th. Bank of America downgraded shares of Fair Isaac from a "buy" rating to a "neutral" rating and lowered their target price for the company from $1,400.00 to $700.00 in a report on Wednesday, September 30th. Zacks Research lowered shares of Fair Isaac from a "hold" rating to a "strong sell" rating in a research note on Wednesday, October 7th. Credit Suisse Group set a $1,150.00 price target on shares of Fair Isaac in a report on Wednesday, September 30th. Finally, Griffin Securities set a $897.00 price objective on shares of Fair Isaac in a research report on Monday. Nine investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $1,014.00.

Insiders Place Their Bets

In related news, Director Eva Manolis sold 967 shares of the company's stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $1,400.00, for a total transaction of $1,353,800.00. Following the transaction, the director owned 498 shares of the company's stock, valued at $697,200. This represents a 66.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.02% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Fair Isaac

Several institutional investors have recently made changes to their positions in FICO. BlackRock Inc. acquired a new position in shares of Fair Isaac during the 2nd quarter worth $2,491,517,000. Primecap Management Co. CA purchased a new position in shares of Fair Isaac in the 2nd quarter valued at about $433,508,000. Van ECK Associates Corp lifted its stake in shares of Fair Isaac by 95.0% in the second quarter. Van ECK Associates Corp now owns 223,798 shares of the technology company's stock valued at $267,389,000 after purchasing an additional 109,027 shares during the period. Lindsell Train Ltd lifted its stake in shares of Fair Isaac by 15.2% in the first quarter. Lindsell Train Ltd now owns 249,422 shares of the technology company's stock valued at $266,268,000 after purchasing an additional 32,829 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its stake in shares of Fair Isaac by 9.2% in the first quarter. Arrowstreet Capital Limited Partnership now owns 175,917 shares of the technology company's stock valued at $187,798,000 after purchasing an additional 14,792 shares during the period. 85.75% of the stock is currently owned by hedge funds and other institutional investors.

Fair Isaac Stock Down 9.0%

The stock has a market cap of $16.02 billion, a PE ratio of 21.61, a P/E/G ratio of 0.97 and a beta of 1.35. The business's fifty day moving average is $909.16 and its 200 day moving average is $1,065.05.

Fair Isaac (NYSE:FICO - Get Free Report) last issued its earnings results on Wednesday, July 29th. The technology company reported $12.18 earnings per share for the quarter, topping the consensus estimate of $11.76 by $0.42. Fair Isaac had a net margin of 34.05% and a negative return on equity of 32.51%. The company had revenue of $674.19 million for the quarter, compared to analyst estimates of $679.17 million. During the same period in the prior year, the business posted $8.57 earnings per share. The firm's revenue for the quarter was up 25.7% compared to the same quarter last year. Fair Isaac has set its FY 2026 guidance at 42.430-42.430 EPS. As a group, analysts predict that Fair Isaac Corporation will post 36.81 EPS for the current year.

About Fair Isaac

Fair Isaac Corporation, commonly known as FICO, develops analytics and decision-management software used by businesses to assess risk, detect fraud and make customer-related decisions. The company is best known for the FICO Score, a credit-risk scoring system used by lenders and other financial institutions to evaluate consumer creditworthiness.

FICO's offerings include credit scoring solutions, decisioning platforms, fraud-detection tools, customer management software and predictive analytics.

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