Fair Isaac (NYSE:FICO) Reaches New 12-Month Low After Analyst Downgrade

Fair Isaac Corporation (NYSE:FICO) reached 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 changing hands. The stock had previously closed at $840.89.

A number of other brokerages have also recently issued reports on FICO. Huber Research cut shares of Fair Isaac to a “strong sell” rating in a report on Tuesday. Royal Bank Of Canada reaffirmed an “outperform” rating on shares of Fair Isaac in a report on Tuesday. The Goldman Sachs Group set a $1,322.00 price target on Fair Isaac in a report on Tuesday. Susquehanna set a $700.00 price objective on Fair Isaac in a research report on Wednesday. Finally, Bank of America lowered Fair Isaac from a “buy” rating to a “neutral” rating and dropped their target price for the stock from $1,400.00 to $700.00 in a research report on Wednesday. Ten equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Fair Isaac has an average rating of “Moderate Buy” and an average target price of $1,244.06.

Insider Transactions at Fair Isaac

In other news, Director Eva Manolis sold 967 shares of the stock in a transaction on Wednesday, July 29th. The stock was 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 owned 498 shares of the company’s stock, valued at approximately $697,200. This represents a 66.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 3.02% of the company’s stock.

More Fair Isaac News

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

Hedge Funds Weigh In On Fair Isaac

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Bayban bought a new stake in shares of Fair Isaac during the 4th quarter worth about $25,000. Western Wealth Management LLC bought a new position in shares of Fair Isaac in the first quarter valued at approximately $29,000. Keating Financial Advisory Services Inc. acquired a new position in shares of Fair Isaac during the second quarter valued at approximately $30,000. Harbour Investments Inc. increased its stake in shares of Fair Isaac by 82.4% during the fourth quarter. Harbour Investments Inc. now owns 31 shares of the technology company’s stock valued at $52,000 after acquiring an additional 14 shares during the period. Finally, Reflection Asset Management bought a new stake in Fair Isaac during the fourth quarter worth approximately $52,000. Institutional investors own 85.75% of the company’s stock.

Fair Isaac Stock Up 11.9%

The stock has a market capitalization of $14.32 billion, a price-to-earnings ratio of 19.16, a P/E/G ratio of 0.53 and a beta of 1.35. The business has a 50-day simple moving average of $1,033.98 and a two-hundred day simple moving average of $1,104.25.

Fair Isaac (NYSE:FICO) last issued its quarterly 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 negative return on equity of 32.51% and a net margin of 34.05%.The firm had revenue of $674.19 million during the quarter, compared to analyst estimates of $679.17 million. During the same period last year, the company posted $8.57 EPS. The firm’s quarterly 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. On average, analysts forecast that Fair Isaac Corporation will post 37.2 EPS for the current year.

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.