Fair Isaac (NYSE:FICO – Get Free Report) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Wednesday, Zacks reports.
Several other equities research analysts have also issued reports on FICO. Robert W. Baird reduced their price target on Fair Isaac from $1,549.00 to $1,070.00 and set an “outperform” rating for the company in a report on Friday, October 2nd. Needham & Company LLC reaffirmed a “buy” rating and set a $1,650.00 price objective on shares of Fair Isaac in a research report on Thursday, July 30th. Wells Fargo & Company cut their price objective on shares of Fair Isaac from $1,350.00 to $950.00 and set an “overweight” rating on the stock in a research report on Wednesday, September 30th. Mizuho set a $1,344.00 target price on shares of Fair Isaac in a research report on Tuesday, September 29th. Finally, Weiss Ratings lowered shares of Fair Isaac from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday, September 14th. Ten research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Fair Isaac presently has an average rating of “Hold” and a consensus target price of $1,210.38.
Get Our Latest Stock Analysis on FICO
Fair Isaac Stock Up 3.8%
Fair Isaac (NYSE:FICO – Get Free Report) last released its quarterly earnings data 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 analysts’ expectations of $679.17 million. During the same quarter last year, the firm earned $8.57 earnings per share. The business’s revenue for the quarter was up 25.7% on a year-over-year basis. Fair Isaac has set its FY 2026 guidance at 42.430-42.430 EPS. Equities research analysts expect that Fair Isaac will post 37.09 earnings per share for the current fiscal year.
Insider Buying and Selling at Fair Isaac
In related news, Director Eva Manolis sold 967 shares of the business’s stock in a transaction that occurred 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 sale, the director directly owned 498 shares in the company, valued at approximately $697,200. The trade was a 66.01% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 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 added to or reduced their stakes in FICO. Versant Capital Management Inc raised its position in shares of Fair Isaac by 52.3% in the third quarter. Versant Capital Management Inc now owns 67 shares of the technology company’s stock valued at $40,000 after purchasing an additional 23 shares during the period. Envestnet Portfolio Solutions Inc. grew its stake in Fair Isaac by 4.8% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 1,592 shares of the technology company’s stock valued at $1,902,000 after buying an additional 73 shares during the last quarter. Capstone Financial Advisors Inc. acquired a new position in Fair Isaac in the 2nd quarter valued at $208,000. Sequoia Financial Advisors LLC raised its holdings in Fair Isaac by 15.4% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 1,089 shares of the technology company’s stock worth $1,301,000 after acquiring an additional 145 shares during the period. Finally, National Pension Service raised its holdings in Fair Isaac by 14.0% in the 2nd quarter. National Pension Service now owns 42,022 shares of the technology company’s stock worth $50,207,000 after acquiring an additional 5,147 shares during the period. Institutional investors and hedge funds own 85.75% of the company’s stock.
Fair Isaac News Roundup
Here are the key news stories impacting Fair Isaac this week:
- Positive Sentiment: 15% workforce reduction could lower costs. Fair Isaac is restructuring and increasing its use of artificial intelligence, which could improve efficiency and support margins over time. However, the layoffs also reflect pressure on the business. Fair Isaac to Cut 15% of Workforce
- Positive Sentiment: Mortgage customers continue to endorse FICO scores. United Wholesale Mortgage reaffirmed its commitment to FICO scores, providing evidence that the company retains important lender relationships despite changes in the mortgage-credit-score market. United Wholesale Mortgage Reaffirms Commitment
- Positive Sentiment: Analyst support remains intact. Goldman Sachs and Wells Fargo maintained Buy ratings, suggesting some analysts believe FICO’s long-term earnings potential and competitive advantages remain attractive after the selloff. Goldman Sachs Rating
- Neutral Sentiment: The workforce cuts are part of a broader strategic reset. Reports attribute the restructuring to AI adoption, organizational changes and intensifying competition, leaving investors to determine whether future savings will offset lost revenue or business disruption. Fair Isaac Workforce Reduction
- Negative Sentiment: Regulatory and competitive risks are weighing on the mortgage business. The FHFA’s mortgage-credit-score decision reduced FICO’s previously near-mandatory position with lenders, while Rocket’s move toward VantageScore could further challenge FICO’s mortgage moat. Rocket and VantageScore Shift
- Negative Sentiment: Shareholder litigation concerns have emerged. Levi & Korsinsky announced an investigation into possible securities-law violations following the sharp market reaction to the FHFA announcement; the notice does not establish wrongdoing by FICO. FICO Securities Investigation Notice
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.
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