Fair Isaac (NYSE:FICO) Stock Moved Down to “Neutral” by Bank of America

Fair Isaac (NYSE:FICO) was downgraded by stock analysts at Bank of America from a “buy” rating to a “neutral” rating in a research note issued to investors on Wednesday, Marketbeat reports. They currently have a $700.00 price target on the technology company’s stock, down from their previous price target of $1,400.00. Bank of America‘s price target suggests a potential upside of 17.96% from the company’s current price.

Several other equities research analysts have also commented on FICO. Wells Fargo & Company cut their target price on Fair Isaac from $1,350.00 to $950.00 and set an “overweight” rating on the stock in a research report on Wednesday. The Goldman Sachs Group set a $1,322.00 price target on Fair Isaac in a research note on Tuesday. Barclays cut their price target on Fair Isaac from $1,700.00 to $935.00 and set an “overweight” rating on the stock in a report on Wednesday. Mizuho set a $1,344.00 price objective on shares of Fair Isaac in a research report on Tuesday. Finally, UBS Group lowered their price objective on shares of Fair Isaac from $1,200.00 to $1,130.00 and set a “neutral” rating for the company in a research note on Wednesday, August 12th. Ten investment 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, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,250.33.

Fair Isaac Stock Down 4.0%

FICO opened at $593.43 on Wednesday. Fair Isaac has a twelve month low of $586.05 and a twelve month high of $1,998.01. The company has a fifty day moving average of $1,044.88 and a 200-day moving average of $1,107.55. The stock has a market cap of $12.82 billion, a PE ratio of 17.14, a price-to-earnings-growth ratio of 0.56 and a beta of 1.32.

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 the consensus estimate 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 business had revenue of $674.19 million for the quarter, compared to analyst estimates of $679.17 million. During the same quarter in the previous year, the business earned $8.57 earnings per share. Fair Isaac’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. Sell-side analysts anticipate that Fair Isaac will post 37.2 EPS for the current fiscal year.

Insider Buying and Selling at Fair Isaac

In related 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 transaction, the director directly owned 498 shares in the company, valued at $697,200. This trade represents a 66.01% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.02% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of FICO. Canada Pension Plan Investment Board bought a new position in Fair Isaac in the 2nd quarter valued at about $1,737,000. Bank of America Corp DE increased its holdings in Fair Isaac by 5.7% during the 1st 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. purchased a new stake in shares of Fair Isaac in the second quarter worth approximately $67,760,000. Altrafin AG purchased a new stake in shares of Fair Isaac in the fourth quarter worth approximately $2,117,000. Finally, M.D. Sass LLC bought a new position in shares of Fair Isaac in the fourth quarter valued at approximately $55,660,000. Institutional investors and hedge funds own 85.75% of the company’s stock.

More Fair Isaac News

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

• Positive Sentiment: BMO Capital Markets maintained an “outperform” rating while lowering its price target from $1,550 to $1,150, implying substantial upside from current levels. BMO price target report
• Positive Sentiment: Fair Isaac’s latest reported quarter showed strong earnings growth: revenue increased 25.7% year over year and earnings per share exceeded consensus estimates, indicating that the broader business remains profitable despite pressure on its mortgage franchise.
• Neutral Sentiment: Some market commentary argues that the sell-off may have overshot the fundamental damage, with investors focusing on whether FICO can retain pricing power through its brand, software, and non-mortgage businesses. How Big Could Fair Isaac Stock’s Next Fall Be?
• Negative Sentiment: The Federal Housing Finance Agency and the government-sponsored mortgage agencies have moved to give VantageScore 4.0 broader access and more comparable treatment in mortgage pricing. This threatens FICO’s long-standing dominance and could reduce scoring revenue, pricing power, and valuation multiples. Regulatory and competitive pressure report
• Negative Sentiment: Rocket Mortgage’s decision to prefer VantageScore for eligible loans and TransUnion’s continued 99-cent pricing are viewed as signs that competitors are willing to challenge FICO aggressively in mortgage lending. Mortgage competition analysis
• Negative Sentiment: Analysts have sharply reduced expectations: Bank of America cut its target from $1,400 to $700 and reaffirmed a neutral rating, while other coverage also cited regulatory risk. Investor-law firms have announced investigations into potential securities-law violations, adding further headline and litigation risk. FICO investigation notice

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.