Fair Isaac (NYSE:FICO) Stock Price Down 5.9% - Should You Sell?

Key Points

• Fair Isaac shares fell 5.9% to about $665.46, with trading volume 79% above the daily average.
• Analyst sentiment is mixed: MarketBeat reports a consensus “Hold” rating and an average price target of $1,210.38, while recent firms lowered targets or issued downgrades.
• Despite the stock decline, quarterly EPS of $12.18 exceeded estimates and revenue rose 25.7% year over year to $674.19 million; institutional investors own 85.75% of the company.

Fair Isaac Corporation (NYSE:FICO - Get Free Report)'s stock price fell 5.9% during mid-day trading on Friday. The company traded as low as $667.24 and last traded at $665.4640. 768,204 shares changed hands during trading, an increase of 79% from the average daily volume of 428,652 shares. The stock had previously closed at $707.43.

Wall Street Analysts Forecast Growth

Several brokerages have commented on FICO. Wall Street Zen cut shares of Fair Isaac from a "buy" rating to a "hold" rating in a research report on Sunday, June 28th. Needham & Company LLC reaffirmed a "buy" rating and issued a $1,650.00 price objective on shares of Fair Isaac in a report on Thursday, July 30th. UBS Group lowered their price target on shares of Fair Isaac from $1,200.00 to $1,130.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 12th. Zacks Research downgraded Fair Isaac from a "hold" rating to a "strong sell" rating in a research report on Wednesday. Finally, Robert W. Baird cut their price objective on Fair Isaac from $1,549.00 to $1,070.00 and set an "outperform" rating for the company in a research report on Friday, October 2nd. Ten analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, Fair Isaac currently has a consensus rating of "Hold" and an average price target of $1,210.38.

Fair Isaac Trading Down 5.4%

The firm has a market capitalization of $14.46 billion, a PE ratio of 19.38, a price-to-earnings-growth ratio of 0.77 and a beta of 1.35. The firm has a 50-day moving average of $975.29 and a two-hundred day moving average of $1,087.56.

Fair Isaac (NYSE:FICO - Get Free Report) last posted its earnings results on Wednesday, July 29th. The technology company reported $12.18 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 firm had revenue of $674.19 million during the quarter, compared to the consensus estimate of $679.17 million. During the same quarter in the prior year, the company earned $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. Equities research analysts expect that Fair Isaac Corporation will post 37.09 earnings per share for the current fiscal year.

Insider Buying and Selling

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

Institutional Trading of Fair Isaac

A number of hedge funds have recently made changes to their positions in the stock. XXEC Inc. acquired a new stake in Fair Isaac during the second quarter valued at approximately $33,189,000. BlackRock Inc. bought a new position in shares of Fair Isaac in the second quarter worth $2,491,517,000. Primecap Management Co. CA bought a new position in Fair Isaac during the 2nd quarter valued at $433,508,000. Legal & General Group Plc acquired a new position in shares of Fair Isaac in the 2nd quarter worth approximately $173,157,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of Fair Isaac during the second quarter worth $152,357,000. Institutional investors and hedge funds own 85.75% of the company's stock.

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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