Zacks Investment Research Lowers Fair Isaac (FICO) to Sell

Zacks Investment Research downgraded shares of Fair Isaac (NYSE:FICO) from a hold rating to a sell rating in a research note released on Tuesday.

According to Zacks, “Fair Isaac Corporation makes decisions smarter. The company’s solutions and technologies for Enterprise Decision Management give businesses the power to automate more processes, and apply more intelligence to every customer interaction. Through increasing the precision, consistency and agility of their decisions, Fair Isaac clients worldwide increase sales, build customer value, cut fraud losses, manage credit risk, reduce operational costs, meet changing compliance demands and enter new markets more profitably. Fair Isaac powers hundreds of billions of decisions each year in financial services, insurance, telecommunications, retail, consumer branded goods, healthcare and the public sector. “

FICO has been the topic of several other reports. Wells Fargo & Co lifted their target price on shares of Fair Isaac from $200.00 to $250.00 and gave the stock an outperform rating in a research report on Friday, July 27th. ValuEngine downgraded shares of Fair Isaac from a strong-buy rating to a buy rating in a research report on Friday, November 2nd. Finally, Barclays lifted their target price on shares of Fair Isaac from $190.00 to $200.00 and gave the stock an equal weight rating in a research report on Thursday, July 12th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and two have given a buy rating to the stock. The company presently has a consensus rating of Hold and a consensus price target of $208.50.

Shares of Fair Isaac stock traded down $1.92 during midday trading on Tuesday, hitting $196.33. 166,384 shares of the company traded hands, compared to its average volume of 315,364. The firm has a market capitalization of $5.81 billion, a PE ratio of 45.24, a price-to-earnings-growth ratio of 4.08 and a beta of 1.43. The company has a current ratio of 0.80, a quick ratio of 0.84 and a debt-to-equity ratio of 2.01. Fair Isaac has a 12 month low of $150.56 and a 12 month high of $241.10.

Fair Isaac (NYSE:FICO) last announced its quarterly earnings results on Thursday, November 1st. The technology company reported $1.89 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.02 by ($0.13). The company had revenue of $279.80 million for the quarter, compared to the consensus estimate of $272.70 million. Fair Isaac had a net margin of 13.79% and a return on equity of 45.11%. The company’s revenue for the quarter was up 10.5% compared to the same quarter last year. During the same period last year, the firm posted $1.65 earnings per share. As a group, research analysts anticipate that Fair Isaac will post 4.89 earnings per share for the current year.

In related news, insider James M. Wehmann sold 9,503 shares of Fair Isaac stock in a transaction that occurred on Thursday, October 25th. The shares were sold at an average price of $197.70, for a total transaction of $1,878,743.10. Following the sale, the insider now directly owns 99,229 shares in the company, valued at approximately $19,617,573.30. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider James M. Wehmann sold 10,000 shares of Fair Isaac stock in a transaction that occurred on Tuesday, November 6th. The stock was sold at an average price of $190.60, for a total transaction of $1,906,000.00. Following the sale, the insider now owns 99,726 shares in the company, valued at $19,007,775.60. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 115,868 shares of company stock worth $25,252,220. 5.60% of the stock is owned by corporate insiders.

Large investors have recently bought and sold shares of the stock. First Hawaiian Bank acquired a new position in shares of Fair Isaac in the 3rd quarter worth approximately $155,000. Raymond James Trust N.A. acquired a new position in shares of Fair Isaac in the 3rd quarter worth approximately $212,000. Flagship Harbor Advisors LLC acquired a new position in shares of Fair Isaac in the 2nd quarter worth approximately $192,000. CIBC Asset Management Inc acquired a new position in shares of Fair Isaac in the 3rd quarter worth approximately $234,000. Finally, Meridian Investment Counsel Inc. acquired a new position in shares of Fair Isaac in the 2nd quarter worth approximately $203,000. Institutional investors and hedge funds own 84.39% of the company’s stock.

About Fair Isaac

Fair Isaac Corporation develops analytic, software, and data management products and services that enable businesses to automate, enhance, and connect decisions. The company offers analytical solutions, credit scoring, and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, healthcare organizations, and public agencies.

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