Fair Isaac (NYSE:FICO) Sees Strong Trading Volume – Should You Buy?

Shares of Fair Isaac Corporation (NYSE:FICO) saw unusually-strong trading volume on Friday. 387,498 shares traded hands during trading, a decline of 3% from the previous session’s volume of 400,022 shares. The stock last traded at $662.6770 and had previously closed at $661.75.

Trending Headlines about Fair Isaac

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

• Positive Sentiment: Robert W. Baird maintained an “outperform” rating while cutting its price target to $1,070 from $1,549. The new target still implies substantial upside from recent levels, suggesting the firm believes the sell-off has overshot FICO’s long-term fundamental value. Benzinga report
• Positive Sentiment: Wells Fargo reportedly retained its buy rating, while some retail traders have recently increased purchases of FICO shares. These signals indicate that certain investors view the sharp decline as an opportunity, although they have not offset broader selling pressure. Wells Fargo rating report
• Neutral Sentiment: BMO Capital Markets also kept an “outperform” rating but lowered its price target to $1,150 from $1,550. The target reduction reflects greater near-term uncertainty even though BMO still expects meaningful recovery potential. BMO price target report
• Negative Sentiment: Investors are reacting to reports that the FHFA may move toward a two-bureau mortgage credit-scoring system and has expanded the role of VantageScore. The changes could make VantageScore a more credible alternative to FICO scores and threaten Fair Isaac’s mortgage-scoring revenue, margins, and competitive moat. FHFA proposal report
• Negative Sentiment: Rocket Mortgage’s decision to use VantageScore 4.0 as its preferred model, combined with aggressive pricing from TransUnion, has intensified fears of a mortgage credit-score price war and declining pricing power for FICO.
• Negative Sentiment: Bank of America downgraded FICO to neutral and sharply reduced its price target, adding to analyst concern about regulatory risk. A law firm has also announced an investigation into potential securities-law violations following the sell-off, creating an additional overhang. Bank of America downgrade report

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the company. Robert W. Baird reduced their price objective 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. UBS Group cut their target price on 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. Raymond James Financial reaffirmed an “outperform” rating on shares of Fair Isaac in a research note on Wednesday, September 9th. Credit Suisse Group set a $1,150.00 price target on shares of Fair Isaac in a research note on Wednesday. Finally, Wells Fargo & Company lowered their price objective on shares of Fair Isaac from $1,350.00 to $950.00 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 given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Fair Isaac currently has a consensus rating of “Moderate Buy” and an average target price of $1,210.38.

Fair Isaac Stock Up 0.1%

The stock has a market cap of $14.31 billion, a P/E ratio of 19.15, a PEG ratio of 0.53 and a beta of 1.35. The firm’s fifty day moving average price is $1,033.98 and its 200-day moving average price is $1,104.25.

Fair Isaac (NYSE:FICO) last issued its quarterly earnings data on Wednesday, July 29th. The technology company reported $12.18 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 firm had revenue of $674.19 million during the quarter, compared to the consensus estimate of $679.17 million. During the same period in the prior year, the firm posted $8.57 earnings per share. The company’s quarterly revenue was up 25.7% compared to the same quarter last year. Fair Isaac has set its FY 2026 guidance at 42.430-42.430 EPS. Sell-side analysts predict that Fair Isaac Corporation will post 37.2 earnings per share for the current 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 dated Wednesday, July 29th. The shares were sold at an average price of $1,400.00, for a total transaction of $1,353,800.00. Following the transaction, the director owned 498 shares in the company, valued at $697,200. The trade was a 66.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 3.02% of the company’s stock.

Institutional Trading of Fair Isaac

Several large investors have recently bought and sold shares of the company. Versant Capital Management Inc grew its stake in 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 period. Envestnet Portfolio Solutions Inc. boosted its holdings in shares of Fair Isaac by 4.8% during 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 in the last quarter. Capstone Financial Advisors Inc. bought a new stake in shares of Fair Isaac during the 2nd quarter valued at $208,000. Sequoia Financial Advisors LLC grew its position in shares of 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 buying an additional 145 shares during the period. Finally, National Pension Service grew its position in shares of 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 buying an additional 5,147 shares during the period. 85.75% of the stock is owned by institutional investors.

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.