UBS Group Cuts Fair Isaac (NYSE:FICO) Price Target to $1,350.00

Key Points

• UBS cut its price target on Fair Isaac to $1,350 from $1,500 and kept a "neutral" rating, implying about a 16% upside from the prior close.
• FICO reported strong quarterly results (EPS $7.33 vs. $7.08 estimate; revenue $766M, up 16.4%) but its stock plunged to $1,163.11 on heavy volume amid competitive pricing pressure in mortgage scoring and notable insider selling.
• The company approved a $1.5 billion share buyback (≈5.2% of shares) while launching a $1.0 billion senior notes offering to refinance obligations, a combination that both supports the stock and raises short-term leverage concerns.

Fair Isaac (NYSE:FICO - Get Free Report) had its price objective decreased by research analysts at UBS Group from $1,500.00 to $1,350.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "neutral" rating on the technology company's stock. UBS Group's target price would indicate a potential upside of 16.07% from the stock's previous close.

FICO has been the subject of a number of other reports. Weiss Ratings reiterated a "hold (c+)" rating on shares of Fair Isaac in a report on Monday, December 29th. Zacks Research cut shares of Fair Isaac from a "strong-buy" rating to a "hold" rating in a research report on Monday, December 1st. Bank of America initiated coverage on shares of Fair Isaac in a research note on Tuesday, February 17th. They set a "buy" rating and a $1,900.00 price objective for the company. Jefferies Financial Group increased their target price on shares of Fair Isaac from $2,100.00 to $2,200.00 and gave the stock a "buy" rating in a report on Friday, January 16th. Finally, Needham & Company LLC reissued a "buy" rating on shares of Fair Isaac in a research note on Thursday, February 26th. Nine equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $1,972.31.

Fair Isaac Price Performance

Fair Isaac stock traded down $122.04 during mid-day trading on Wednesday, hitting $1,163.11. The company's stock had a trading volume of 846,978 shares, compared to its average volume of 315,869. The business has a 50 day moving average price of $1,469.69 and a 200-day moving average price of $1,595.35. Fair Isaac has a 12 month low of $1,146.69 and a 12 month high of $2,217.60. The stock has a market cap of $27.59 billion, a price-to-earnings ratio of 43.05, a price-to-earnings-growth ratio of 1.39 and a beta of 1.28.

Fair Isaac (NYSE:FICO - Get Free Report) last announced its quarterly earnings data on Wednesday, January 28th. The technology company reported $7.33 earnings per share for the quarter, beating the consensus estimate of $7.08 by $0.25. The firm had revenue of $766.00 million during the quarter, compared to the consensus estimate of $501.05 million. Fair Isaac had a negative return on equity of 40.98% and a net margin of 31.89%.The business's revenue was up 16.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $5.79 earnings per share. Fair Isaac has set its FY 2026 guidance at 38.170-38.170 EPS. On average, equities research analysts expect that Fair Isaac will post 24.15 earnings per share for the current fiscal year.

Fair Isaac declared that its board has approved a share buyback plan on Wednesday, February 25th that permits the company to repurchase $1.50 billion in shares. This repurchase authorization permits the technology company to buy up to 5.2% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In other news, Director Eva Manolis sold 520 shares of the business's stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $1,227.63, for a total transaction of $638,367.60. Following the sale, the director owned 344 shares in the company, valued at approximately $422,304.72. The trade was a 60.19% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Steven P. Weber sold 1,426 shares of the company's stock in a transaction dated Wednesday, December 17th. The stock was sold at an average price of $1,810.00, for a total transaction of $2,581,060.00. Following the completion of the sale, the chief financial officer directly owned 2,804 shares in the company, valued at $5,075,240. This represents a 33.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 2,825 shares of company stock valued at $4,657,565 over the last ninety days. Company insiders own 3.02% of the company's stock.

Institutional Investors Weigh In On Fair Isaac

Hedge funds have recently bought and sold shares of the business. Brighton Jones LLC boosted its position in shares of Fair Isaac by 168.7% in the 4th quarter. Brighton Jones LLC now owns 481 shares of the technology company's stock worth $958,000 after purchasing an additional 302 shares in the last quarter. Great Lakes Advisors LLC raised its stake in Fair Isaac by 5.7% during the first quarter. Great Lakes Advisors LLC now owns 112 shares of the technology company's stock valued at $207,000 after buying an additional 6 shares during the last quarter. Woodline Partners LP boosted its holdings in Fair Isaac by 46.1% in the first quarter. Woodline Partners LP now owns 2,138 shares of the technology company's stock worth $3,943,000 after acquiring an additional 675 shares in the last quarter. Penserra Capital Management LLC grew its stake in shares of Fair Isaac by 12.8% in the second quarter. Penserra Capital Management LLC now owns 132 shares of the technology company's stock worth $240,000 after acquiring an additional 15 shares during the last quarter. Finally, Profund Advisors LLC grew its stake in shares of Fair Isaac by 6.0% in the second quarter. Profund Advisors LLC now owns 444 shares of the technology company's stock worth $812,000 after acquiring an additional 25 shares during the last quarter. Institutional investors own 85.75% of the company's stock.

Fair Isaac News Summary

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

• Positive Sentiment: Recent quarterly results and analyst upgrades reinforce underlying business strength: FICO reported strong revenue and an EPS beat earlier this year, and at least one upgrade/positive analyst note argues the business momentum and margins remain durable. Read More.
• Neutral Sentiment: Long-term growth narratives remain in the market: sector coverage from Zacks highlights FICO as a top growth stock on fundamental metrics, which supports a longer-term bullish thesis despite short-term volatility. Read More.
• Negative Sentiment: FICO launched a $1.0 billion private offering of senior notes due 2034 — a large debt issuance that the company says will be used to repay and refinance obligations; new debt can raise leverage concerns and create short-term pressure on the equity. Read More.
• Negative Sentiment: Competitive pricing actions in the mortgage scoring market: reports say Experian and Equifax are offering aggressive, below-market pricing for VantageScore 4.0, increasing competitive pressure on FICO’s core credit-score product in a key revenue vertical. That news is cited as a trigger for heavy selling. Read More.
• Negative Sentiment: Heavy volume, insider selling and institutional rebalancing amplify the selloff: data show unusually large trading volume today alongside extensive insider sales over recent months and mixed institutional positioning, which can accelerate downside in a weak tape. Read More.

Fair Isaac Company Profile

Fair Isaac Corporation, commonly known as FICO, is a data analytics and software company best known for its FICO Score, a widely used credit-scoring system that helps lenders assess consumer credit risk. Founded in 1956 by Bill Fair and Earl Isaac, the company has evolved from its origins in statistical credit scoring to a broader focus on predictive analytics, decision management and artificial intelligence-driven solutions for financial services and other industries. FICO is headquartered in San Jose, California, and operates globally, serving clients across North America, Latin America, Europe, the Middle East, Africa and the Asia-Pacific region.

FICO's product portfolio centers on analytics and decisioning technologies.

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