Fair Isaac (NYSE:FICO) Hits New 12-Month Low on Analyst Downgrade

Fair Isaac Corporation (NYSE:FICO) shares hit a new 52-week low during trading on Wednesday after BMO Capital Markets lowered their price target on the stock from $1,550.00 to $1,150.00. BMO Capital Markets currently has an outperform rating on the stock. Fair Isaac traded as low as $595.19 and last traded at $615.0150, with a volume of 4901327 shares. The stock had previously closed at $840.89.

Several other research analysts have also recently issued reports on the company. Raymond James Financial reissued an “outperform” rating on shares of Fair Isaac in a research note on Wednesday, September 9th. Weiss Ratings downgraded shares of Fair Isaac from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday, September 14th. UBS Group decreased their target price on 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. Barclays dropped their target price on shares of Fair Isaac from $1,700.00 to $935.00 and set an “overweight” rating on the stock in a research report on Wednesday. Finally, Jefferies Financial Group reissued a “buy” rating on shares of Fair Isaac in a research report on Tuesday. Ten investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $1,244.06.

Insider Buying and Selling at Fair Isaac

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

Fair Isaac News Summary

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

• Positive Sentiment: Wells Fargo maintained its Buy rating, signaling continued confidence in Fair Isaac’s long-term earnings power. Wells Fargo maintains Buy rating
• Positive Sentiment: BMO Capital Markets lowered its price target to $1,150 from $1,550 but retained an Outperform rating, implying substantial upside from current levels. BMO price target update
• Positive Sentiment: Robinhood traders recorded their largest five-day buying streak on record, with FICO among the stocks attracting purchases. This may be contributing to short-term demand and bargain hunting after the sell-off. Robinhood traders buying stocks
• Neutral Sentiment: Some coverage argues that the stock’s sharp decline has made its valuation more attractive, but the potential recovery depends on whether FICO can defend its pricing power and mortgage-market position. Fair Isaac valuation analysis
• Negative Sentiment: Regulatory changes have expanded VantageScore 4.0’s availability to approved Fannie Mae and Freddie Mac lenders, weakening FICO’s long-standing advantage in mortgage credit scoring. Rocket Mortgage’s decision to prefer VantageScore for eligible loans adds competitive pressure. Mortgage scoring competition
• Negative Sentiment: Bank of America downgraded FICO to Neutral and cut its price target to $700 from $1,400, citing regulatory risk and potential erosion of the company’s mortgage-scoring economics. Bank of America downgrade
• Negative Sentiment: An investor-law-firm investigation into potential securities-law violations adds headline and litigation risk following the mortgage-scoring announcement. FICO investigation notice

Institutional Investors Weigh In On Fair Isaac

A number of institutional investors have recently added to or reduced their stakes in the company. Canada Pension Plan Investment Board bought a new stake in Fair Isaac in the second quarter valued at $1,737,000. Bank of America Corp DE boosted its stake in 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 worth $142,461,000 after purchasing an additional 7,154 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Fair Isaac in the second quarter worth about $67,760,000. Altrafin AG acquired a new stake in shares of Fair Isaac in the 4th quarter valued at $2,117,000. Finally, BlackRock Inc. acquired a new position in shares of Fair Isaac during the second quarter valued at $2,491,517,000. 85.75% of the stock is owned by institutional investors and hedge funds.

Fair Isaac Price Performance

The stock has a market capitalization of $14.32 billion, a price-to-earnings ratio of 19.16, a price-to-earnings-growth ratio of 0.53 and a beta of 1.35. The stock has a 50-day moving average of $1,033.98 and a 200 day moving average of $1,104.25.

Fair Isaac (NYSE:FICO) last released its earnings results on Wednesday, July 29th. The technology company reported $12.18 earnings per share (EPS) for the quarter, beating 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 company had revenue of $674.19 million for the quarter, compared to the consensus estimate of $679.17 million. During the same period in the prior year, the company posted $8.57 EPS. The company’s revenue 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. Sell-side analysts anticipate that Fair Isaac Corporation will post 37.2 earnings per share for the current fiscal year.

About Fair Isaac

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.