Fair Isaac (NYSE:FICO) Shares Gap Up – Time to Buy?

Fair Isaac Corporation (NYSE:FICO) shares gapped up prior to trading on Thursday. The stock had previously closed at $592.47, but opened at $635.00. Fair Isaac shares last traded at $652.1990, with a volume of 524,175 shares trading hands.

Fair Isaac News Summary

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

• Positive Sentiment: Seeking Alpha argues that the sell-off may have gone too far, suggesting FICO’s long-term earnings power and valuation could support a recovery if the company retains meaningful share in mortgage scoring. Fair Isaac: 75% Decline Is Enough
• Positive Sentiment: BMO Capital Markets maintained an “outperform” rating while lowering its price target to $1,150 from $1,550. The target still implies substantial upside from recent levels, providing some support for the rebound. BMO price-target update
• Neutral Sentiment: Investor-law firms, including Levi & Korsinsky and Rosen Law Firm, announced investigations into potential securities-law violations connected with disclosures surrounding the mortgage-score changes. The investigations do not establish wrongdoing but add headline and litigation risk. Levi & Korsinsky FICO investigation notice
• Negative Sentiment: The main reason for FICO’s recent decline is the FHFA’s decision to give VantageScore 4.0 broader access across Fannie Mae and Freddie Mac lenders and place it on a comparable mortgage-pricing framework. Rocket Mortgage’s preference for VantageScore further signals that lenders may have a credible alternative to FICO, threatening pricing power and mortgage-related revenue. FICO regulatory and competitive pressures
• Negative Sentiment: Bank of America downgraded FICO to “neutral” and reduced its price target to $700 from $1,400, while other coverage warns of a potential TransUnion pricing war. These developments reinforce concerns that FICO’s former mortgage-score monopoly may no longer support historical margins.

Analysts Set New Price Targets

A number of research analysts recently weighed in on FICO shares. Jefferies Financial Group reissued a “buy” rating on shares of Fair Isaac in a report on Tuesday. Credit Suisse Group set a $1,150.00 price target on Fair Isaac in a report on Wednesday. Weiss Ratings cut shares of Fair Isaac from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday, September 14th. UBS Group decreased their price objective on shares of Fair Isaac from $1,200.00 to $1,130.00 and set a “neutral” rating on the stock in a report on Wednesday, August 12th. Finally, Wall Street Zen lowered shares of Fair Isaac from a “buy” rating to a “hold” rating in a research report on Sunday, June 28th. Ten analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $1,250.33.

Fair Isaac Price Performance

The firm has a 50-day moving average price of $1,044.88 and a 200 day moving average price of $1,107.55. The company has a market cap of $14.13 billion, a price-to-earnings ratio of 18.86, a P/E/G ratio of 0.56 and a beta of 1.32.

Fair Isaac (NYSE:FICO) last released its quarterly 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. The business had revenue of $674.19 million during the quarter, compared to analysts’ expectations of $679.17 million. Fair Isaac had a negative return on equity of 32.51% and a net margin of 34.05%.The firm’s revenue for the quarter was up 25.7% compared to the same quarter last year. During the same period last year, the firm posted $8.57 EPS. Fair Isaac has set its FY 2026 guidance at 42.430-42.430 EPS. On average, equities analysts anticipate that Fair Isaac Corporation will post 37.2 EPS for the current fiscal year.

Insider Buying and Selling at Fair Isaac

In other news, Director Eva Manolis sold 967 shares of the business’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 sale, the director owned 498 shares of the company’s stock, valued at approximately $697,200. The trade was a 66.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 3.02% of the company’s stock.

Hedge Funds Weigh In On Fair Isaac

A number of hedge funds have recently bought and sold shares of the business. Canada Pension Plan Investment Board acquired a new stake in shares of Fair Isaac in the second quarter valued at approximately $1,737,000. Bank of America Corp DE boosted its stake in shares of Fair Isaac by 5.7% in the first quarter. Bank of America Corp DE now owns 133,448 shares of the technology company’s stock valued at $142,461,000 after buying an additional 7,154 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Fair Isaac during the second quarter worth approximately $67,760,000. Altrafin AG acquired a new stake in Fair Isaac during the fourth quarter worth approximately $2,117,000. Finally, M.D. Sass LLC bought a new position in Fair Isaac during the 4th quarter worth $55,660,000. 85.75% of the stock is owned by institutional investors.

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.