Wells Fargo & Company Has Lowered Expectations for Fair Isaac (NYSE:FICO) Stock Price

Key Points

• Wells Fargo cut its price target on Fair Isaac from $2,300 to $1,650 but kept an "overweight" rating, with the new target implying about a 69.6% upside from the recent close.
• Other analysts have also trimmed targets, yet the consensus remains a "Moderate Buy" with a consensus target of $1,756.71, which is well above the current share price (~$973).
• FICO recently beat quarterly EPS and revenue estimates and its board authorized a $1.5 billion share repurchase (up to 5.2% of shares), signaling management confidence despite analyst target cuts.

Fair Isaac (NYSE:FICO - Get Free Report) had its target price reduced by analysts at Wells Fargo & Company from $2,300.00 to $1,650.00 in a report released on Thursday,Benzinga reports. The brokerage currently has an "overweight" rating on the technology company's stock. Wells Fargo & Company's target price suggests a potential upside of 69.57% from the company's previous close.

A number of other brokerages have also issued reports on FICO. UBS Group decreased their target price on Fair Isaac from $1,500.00 to $1,350.00 and set a "neutral" rating on the stock in a research report on Wednesday, March 11th. JPMorgan Chase & Co. cut their target price on Fair Isaac from $1,825.00 to $1,325.00 and set a "neutral" rating for the company in a research note on Tuesday, March 24th. The Goldman Sachs Group cut their target price on Fair Isaac from $1,770.00 to $1,528.00 and set a "buy" rating for the company in a research note on Thursday, April 2nd. Needham & Company LLC reaffirmed a "buy" rating on shares of Fair Isaac in a research note on Thursday, February 26th. Finally, Jefferies Financial Group raised their price objective on Fair Isaac from $2,100.00 to $2,200.00 and gave the stock a "buy" rating in a research report on Friday, January 16th. Ten research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, Fair Isaac currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,756.71.

Fair Isaac Stock Performance

Shares of NYSE:FICO traded up $2.85 during midday trading on Thursday, reaching $973.02. 122,416 shares of the company's stock traded hands, compared to its average volume of 353,358. Fair Isaac has a 1 year low of $870.01 and a 1 year high of $2,217.60. The company has a market cap of $23.08 billion, a P/E ratio of 36.12, a PEG ratio of 0.99 and a beta of 1.38. The company has a fifty day simple moving average of $1,185.05 and a two-hundred day simple moving average of $1,493.36.

Fair Isaac (NYSE:FICO - Get Free Report) last announced its earnings results on Wednesday, January 28th. The technology company reported $7.33 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $7.08 by $0.25. Fair Isaac had a negative return on equity of 40.98% and a net margin of 31.89%.The firm had revenue of $766.00 million for the quarter, compared to analyst estimates of $501.05 million. During the same quarter last year, the firm posted $5.79 EPS. The business's revenue was up 16.4% on a year-over-year basis. Fair Isaac has set its FY 2026 guidance at 38.170-38.170 EPS. As a group, research analysts forecast that Fair Isaac will post 36.45 EPS for the current fiscal year.

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

Insider Activity

In other news, Director Eva Manolis sold 520 shares of Fair Isaac stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $1,227.63, for a total value of $638,367.60. Following the completion of the transaction, the director owned 344 shares in the company, valued at approximately $422,304.72. This trade represents a 60.19% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Joanna Rees sold 358 shares of Fair Isaac stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $1,360.00, for a total value of $486,880.00. Following the completion of the transaction, the director owned 11,204 shares of the company's stock, valued at $15,237,440. The trade was a 3.10% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 3.02% of the company's stock.

Hedge Funds Weigh In On Fair Isaac

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Fair Isaac by 480,776.3% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,327,664 shares of the technology company's stock valued at $5,625,815,000 after buying an additional 3,326,972 shares during the period. Vanguard Group Inc. boosted its stake in shares of Fair Isaac by 2.4% in the 3rd quarter. Vanguard Group Inc. now owns 3,069,749 shares of the technology company's stock valued at $4,593,971,000 after buying an additional 72,224 shares during the period. Capital World Investors boosted its stake in shares of Fair Isaac by 10.7% in the 4th quarter. Capital World Investors now owns 894,593 shares of the technology company's stock valued at $1,512,417,000 after buying an additional 86,200 shares during the period. Geode Capital Management LLC boosted its stake in shares of Fair Isaac by 1.3% in the 4th quarter. Geode Capital Management LLC now owns 719,120 shares of the technology company's stock valued at $1,213,620,000 after buying an additional 8,886 shares during the period. Finally, Morgan Stanley boosted its stake in shares of Fair Isaac by 2.3% in the 4th quarter. Morgan Stanley now owns 499,836 shares of the technology company's stock valued at $845,037,000 after buying an additional 11,363 shares during the period. Hedge funds and other institutional investors own 85.75% of the company's stock.

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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