Fair Isaac (NYSE:FICO) Rating Lowered to Strong Sell at Zacks Research

Fair Isaac (NYSE:FICO) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Wednesday, Zacks reports.

A number of other analysts also recently weighed in on the stock. Bank of America downgraded shares of Fair Isaac from a “buy” rating to a “neutral” rating and reduced their price target for the company from $1,400.00 to $700.00 in a report on Wednesday, September 30th. Susquehanna set a $700.00 price objective on shares of Fair Isaac in a report on Wednesday, September 30th. Weiss Ratings lowered shares of Fair Isaac from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday, September 14th. Huber Research cut shares of Fair Isaac to a “strong sell” rating in a research note on Tuesday, September 29th. Finally, Robert W. Baird decreased their target price on Fair Isaac from $1,549.00 to $1,070.00 and set an “outperform” rating on the stock in a research report on Friday, October 2nd. Ten investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Fair Isaac currently has a consensus rating of “Hold” and a consensus price target of $1,210.38.

Fair Isaac Stock Up 3.8%

Shares of NYSE FICO opened at $707.60 on Wednesday. Fair Isaac has a 12 month low of $586.05 and a 12 month high of $1,858.91. The company has a market cap of $15.28 billion, a P/E ratio of 20.44, a P/E/G ratio of 0.77 and a beta of 1.35. The business’s 50 day moving average is $975.29 and its two-hundred day moving average is $1,087.56.

Fair Isaac (NYSE:FICO) last posted its quarterly earnings data on Wednesday, July 29th. The technology company reported $12.18 earnings per share for the quarter, beating the consensus estimate of $11.76 by $0.42. The company had revenue of $674.19 million during the quarter, compared to analysts’ expectations of $679.17 million. Fair Isaac had a negative return on equity of 32.51% and a net margin of 34.05%.Fair Isaac’s revenue for the quarter was up 25.7% compared to the same quarter last year. During the same period in the prior year, the business earned $8.57 earnings per share. Fair Isaac has set its FY 2026 guidance at 42.430-42.430 EPS. Sell-side 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 company’s stock in a transaction dated 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 sale, the director owned 498 shares of the company’s stock, valued at $697,200. The trade was a 66.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available 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 Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FICO. BlackRock Inc. acquired a new position in shares of Fair Isaac in the 2nd quarter worth approximately $2,491,517,000. Akre Capital Management LLC boosted its stake in Fair Isaac by 6.4% in the 4th quarter. Akre Capital Management LLC now owns 277,445 shares of the technology company’s stock valued at $469,054,000 after buying an additional 16,596 shares in the last quarter. Primecap Management Co. CA acquired a new stake in Fair Isaac in the 2nd quarter valued at $433,508,000. Arrowstreet Capital Limited Partnership grew its position in Fair Isaac by 26.0% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 161,125 shares of the technology company’s stock valued at $272,401,000 after acquiring an additional 33,253 shares during the period. Finally, Van ECK Associates Corp grew its position in Fair Isaac by 95.0% in the second quarter. Van ECK Associates Corp now owns 223,798 shares of the technology company’s stock valued at $267,389,000 after acquiring an additional 109,027 shares during the period. Institutional investors 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.