Fair Isaac (NYSE:FICO) Shares Gap Up – Here’s What Happened

Fair Isaac Corporation (NYSE:FICO)’s share price gapped up before the market opened 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.

Fair Isaac News Roundup

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.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the stock. Susquehanna set a $700.00 price objective on shares of Fair Isaac in a research note on Wednesday. Wells Fargo & Company cut their target price on Fair Isaac from $1,350.00 to $950.00 and set an “overweight” rating for the company in a research note on Wednesday. UBS Group reduced 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. Raymond James Financial reiterated an “outperform” rating on shares of Fair Isaac in a research note on Wednesday, September 9th. Finally, Barclays lowered their price target on Fair Isaac from $1,700.00 to $935.00 and set an “overweight” rating for the company in a report on Wednesday. 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 company. According to data from MarketBeat.com, Fair Isaac currently has a consensus rating of “Moderate Buy” and an average price target of $1,250.33.

Fair Isaac Trading Up 10.4%

The company’s 50-day simple moving average is $1,044.88 and its 200-day simple moving average is $1,107.55. The stock has a market capitalization of $14.13 billion, a price-to-earnings ratio of 18.86, a PEG ratio of 0.56 and a beta of 1.32.

Fair Isaac (NYSE:FICO) last announced its earnings results on Wednesday, July 29th. The technology company reported $12.18 EPS for the quarter, topping the consensus estimate of $11.76 by $0.42. The firm had revenue of $674.19 million for the quarter, compared to the consensus estimate of $679.17 million. Fair Isaac had a negative return on equity of 32.51% and a net margin of 34.05%.The business’s quarterly revenue was up 25.7% compared to the same quarter last year. During the same period in the previous year, the business earned $8.57 EPS. Fair Isaac has set its FY 2026 guidance at 42.430-42.430 EPS. On average, equities research analysts expect that Fair Isaac Corporation will post 37.2 earnings per share for the current fiscal year.

Insider Buying and Selling at Fair Isaac

In other Fair Isaac news, Director Eva Manolis sold 967 shares of Fair Isaac 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 of the company’s stock, valued at approximately $697,200. The trade was a 66.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.02% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. XXEC Inc. bought a new stake in Fair Isaac during the 2nd quarter worth approximately $33,189,000. BlackRock Inc. purchased a new stake in shares of Fair Isaac in the second quarter worth approximately $2,491,517,000. Capital World Investors lifted its holdings in shares of Fair Isaac by 10.7% in the fourth quarter. Capital World Investors now owns 894,593 shares of the technology company’s stock valued at $1,512,417,000 after purchasing an additional 86,200 shares in the last quarter. Capital International Investors lifted its holdings in shares of Fair Isaac by 0.8% in the fourth quarter. Capital International Investors now owns 380,750 shares of the technology company’s stock valued at $643,704,000 after purchasing an additional 2,867 shares in the last quarter. Finally, Primecap Management Co. CA purchased a new position in shares of Fair Isaac during the second quarter valued at approximately $433,508,000. 85.75% of the stock is currently owned by institutional investors and hedge funds.

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.