Fair Isaac (NYSE:FICO) Stock Dropped to Strong Sell by Zacks Research

Zacks Research downgraded shares of Fair Isaac (NYSE:FICO) from a hold rating to a strong sell rating in a research note published on Wednesday,Zacks reports.

Other equities analysts have also issued reports about the company. Huber Research lowered Fair Isaac to a “strong sell” rating in a research note on Tuesday, September 29th. Barclays cut their price objective on Fair Isaac from $935.00 to $875.00 and set an “overweight” rating for the company in a report on Friday, October 2nd. Robert W. Baird dropped their target price on shares of Fair Isaac from $1,549.00 to $1,070.00 and set an “outperform” rating for the company in a research report on Friday, October 2nd. Wells Fargo & Company decreased their price target on shares of Fair Isaac from $1,350.00 to $950.00 and set an “overweight” rating on the stock in a report on Wednesday, September 30th. Finally, Jefferies Financial Group reaffirmed a “buy” rating on shares of Fair Isaac in a report on Tuesday, September 29th. Ten investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, Fair Isaac presently has an average rating of “Hold” and an average price target of $1,210.38.

Fair Isaac Stock Performance

Shares of FICO opened at $707.60 on Wednesday. Fair Isaac has a 52-week low of $586.05 and a 52-week high of $1,858.91. The stock’s 50-day simple moving average is $975.29 and its 200 day simple moving average is $1,087.56. The stock has a market capitalization of $15.28 billion, a price-to-earnings ratio of 20.44, a price-to-earnings-growth ratio of 0.77 and a beta of 1.35.

Fair Isaac (NYSE:FICO) last released its quarterly earnings results on Wednesday, July 29th. The technology company reported $12.18 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 firm had revenue of $674.19 million during the quarter, compared to analyst estimates of $679.17 million. During the same period in the previous year, the business earned $8.57 EPS. 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. On average, research analysts forecast that Fair Isaac will post 37.09 earnings per share for the current fiscal year.

Insider Buying and Selling at Fair Isaac

In other news, Director Eva Manolis sold 967 shares of the firm’s stock in a transaction that occurred 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 transaction, the director owned 498 shares in the company, valued at approximately $697,200. This trade represents a 66.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 3.02% of the company’s stock.

Institutional Investors Weigh In On Fair Isaac

Several institutional investors have recently added to or reduced their stakes in FICO. Bayban purchased a new position in shares of Fair Isaac in the fourth quarter valued at about $25,000. Western Wealth Management LLC purchased a new stake in shares of Fair Isaac during the first quarter worth about $29,000. Keating Financial Advisory Services Inc. bought a new stake in shares of Fair Isaac in the second quarter worth about $30,000. Versant Capital Management Inc grew its stake 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 worth $40,000 after purchasing an additional 23 shares during the last quarter. Finally, Reflection Asset Management bought a new position in Fair Isaac during the 4th quarter valued at approximately $52,000. Hedge funds and other institutional investors own 85.75% of the company’s stock.

Key Stories Impacting Fair Isaac

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.