Fair Isaac (NYSE:FICO) Shares Gap Down After Earnings Miss

Fair Isaac Co. (NYSE:FICO)’s stock price gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $1,809.70, but opened at $1,649.34. Fair Isaac shares last traded at $1,742.41, with a volume of 9,343 shares.

The technology company reported $4.15 earnings per share (EPS) for the quarter, missing the consensus estimate of $6.21 by ($2.06). Fair Isaac had a negative return on equity of 59.47% and a net margin of 29.86%.

Analyst Ratings Changes

Several research analysts have issued reports on FICO shares. The Goldman Sachs Group increased their price target on Fair Isaac from $2,374.00 to $2,661.00 and gave the stock a “buy” rating in a report on Thursday, December 5th. Robert W. Baird lifted their price target on Fair Isaac from $1,700.00 to $2,000.00 and gave the stock a “neutral” rating in a report on Thursday, November 7th. Barclays raised their target price on Fair Isaac from $2,150.00 to $2,350.00 and gave the stock an “overweight” rating in a research report on Thursday, November 7th. Wells Fargo & Company raised their target price on Fair Isaac from $2,200.00 to $2,400.00 and gave the stock an “overweight” rating in a research report on Thursday, November 7th. Finally, Jefferies Financial Group reduced their price target on Fair Isaac from $2,275.00 to $2,175.00 and set a “buy” rating for the company in a research report on Wednesday. Five investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $2,080.08.

Insiders Place Their Bets

In related news, Director Henry Tayloe Stansbury sold 249 shares of the stock in a transaction dated Monday, November 11th. The stock was sold at an average price of $2,338.55, for a total transaction of $582,298.95. Following the completion of the sale, the director now directly owns 92 shares in the company, valued at $215,146.60. This represents a 73.02 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Thomas A. Bowers sold 2,680 shares of the stock in a transaction dated Monday, November 11th. The shares were sold at an average price of $2,338.21, for a total value of $6,266,402.80. Following the sale, the executive vice president now owns 5,769 shares of the company’s stock, valued at $13,489,133.49. This represents a 31.72 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 13,589 shares of company stock valued at $31,258,963 over the last 90 days. Insiders own 3.46% of the company’s stock.

Institutional Investors Weigh In On Fair Isaac

Several institutional investors and hedge funds have recently bought and sold shares of the business. State Street Corp lifted its holdings in Fair Isaac by 0.5% in the 3rd quarter. State Street Corp now owns 1,045,165 shares of the technology company’s stock worth $2,031,299,000 after buying an additional 5,472 shares during the period. JPMorgan Chase & Co. raised its position in shares of Fair Isaac by 1.1% in the 3rd quarter. JPMorgan Chase & Co. now owns 673,242 shares of the technology company’s stock worth $1,308,460,000 after acquiring an additional 7,466 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Fair Isaac by 1.0% in the 3rd quarter. Geode Capital Management LLC now owns 645,379 shares of the technology company’s stock worth $1,251,537,000 after acquiring an additional 6,510 shares in the last quarter. International Assets Investment Management LLC raised its position in shares of Fair Isaac by 189,461.6% in the 3rd quarter. International Assets Investment Management LLC now owns 538,355 shares of the technology company’s stock worth $1,046,304,000 after acquiring an additional 538,071 shares in the last quarter. Finally, Principal Financial Group Inc. raised its position in shares of Fair Isaac by 0.5% in the 3rd quarter. Principal Financial Group Inc. now owns 372,582 shares of the technology company’s stock worth $724,122,000 after acquiring an additional 1,977 shares in the last quarter. Hedge funds and other institutional investors own 85.75% of the company’s stock.

Fair Isaac Stock Performance

The stock has a market cap of $42.79 billion, a P/E ratio of 85.20, a price-to-earnings-growth ratio of 3.45 and a beta of 1.39. The firm has a 50-day moving average price of $2,048.56 and a 200-day moving average price of $1,959.08.

About Fair Isaac

Fair Isaac Corporation develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Scores and Software. The Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing, as well as associated professional services.