Fair Isaac Corporation (FICO) Stock: A Good Pick In The Tech Industry?

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Fair Isaac Corporation (FICO) is headed up in the market today. The stock, one that is focused on the technology industry, is currently priced at $326.20 after heading down -6.60% so far in today’s session. As it relates to tech stocks, there are a number of aspects that have the ability to lead to price movement in the market. News is one of the most common reasons for movement. Here are the recent trending headlines centered around FICO:

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Sep-11-19 05:51AM Americans average FICO score just keeps getting higher
Sep-06-19 06:15PM Fair Isaac Corp (FICO) EVP, Gen. Counsel & Sec. Mark R Scadina Sold $4.3 million of Shares
Sep-04-19 08:00AM FICO and eDriving Release Latest Version of the FICO Safe Driving Score with Improved Ability to Predict Future Collisions and Offer Drivers Micro-Coaching After Every Trip
Sep-03-19 04:15PM FICO to Present at Upcoming Investor Conference
Aug-30-19 07:15PM Fair Isaac Corp (FICO) EVP, Gen. Counsel & Sec. Mark R Scadina Sold $4 million of Shares

Nonetheless, when making a decision to invest, prospective investors should look at far more than news, this is especially the case in the ever changing tech space. Here’s what’s happing when it comes to Fair Isaac Corporation.

Performance Trends That We’ve Seen From FICO

Although a single session decline, like the fall that we’re seeing from Fair Isaac Corporation might make some investors unhappy, a single session fall alone should not be the basis of a decision to, or not to, invest in a stock. It’s generally smart to look at trends for a period longer than a single trading day. As it relates to FICO, here are the movements that investors have experienced:

  • Past Seven Days – Over the past 7 days, FICO has seen a change in price in the amount of -7.33%.
  • Past Month – The monthly performance from Fair Isaac Corporation works out to -10.67%.
  • Past Three Months – Over the last 3 months, the stock has produced a return that comes to 5.26%
  • Past 6 Months – In the previous six months, we’ve seen a change that works out to 27.05% from the stock.
  • YTD – Since the close of last year FICO has produced a return of 74.44%.
  • Full Year – Lastly, in the past year, investors have seen performance that comes to 38.81% from FICO. Throughout this period of time, the stock has sold at a high of -12.60% and a low of 91.59%.

Ratios Worth Watching

Digging into various ratios having to do with a stock can provide traders a view of just how risky and/or potentially profitable a an investment option may be. Below are some of the key ratios to look at when digging into FICO.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors are expecting that the value of the stock is going to go down. Across the sector, strong tech stocks can have a lower short ratio. On the other hand, we tend to see quite a few short squeezes in the industry. Nonetheless, when it comes to Fair Isaac Corporation, it’s short ratio clocks in at 2.30.

Quick & Current Ratios – The quick and current ratios are tools that dive into liquidity. Basically, they measure the company’s abilities to cover its debts when they mature with only current assets or quick assets. In the technology sector, many companies are heavily reliant on continued support from investors as they work to bring new technologies to market, the quick and current ratios can seem bad. However, quite a few gems in the technology space do have strong quick and current ratios. As it relates to FICO, the quick and current ratios total up to 1.00 and 1.00 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets owned by the company to the price of shares. In this case, the book to share value ratio comes in at 9.26.

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the value of the company’s stock. In this case, the cash to share value works out to 2.76.

What Are Big Money Players Doing With Fair Isaac Corporation

An interesting fact I’ve come to understand so far in my brief time as an intelligence has been that smart investors tend to follow big money investors. That is to say, investors that want to keep the risk down will pay close attention to trades made by institutional investors as well as insiders. So, what does the big money picture look like as it relates to FICO? Here’s what’s happening:

Institutions own 86.10% of the company. Institutional interest has moved by -1.50% over the past three months. When it comes to insiders, those who are close to the company currently own 1.20% percent of FICO shares. Institutions have seen ownership changes of an accumulative -37.81% over the last three months.

Analyst Opinions With Regard To Fair Isaac Corporation

Although it’s never a good idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a smart idea to use their thoughts to validate your own due diligence when it comes to making an investment decision in the tech sector. Below you’ll find the most recent moves that we’ve seen from analysts as it relates to FICO.

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Nov-08-16 Reiterated Barclays Equal Weight $135 → $125
Sep-21-16 Downgrade Barclays Overweight → Equal Weight $135
Aug-02-16 Reiterated Barclays Overweight $115 → $135
Jul-13-16 Initiated Dougherty & Company Buy $135
May-05-16 Reiterated Barclays Overweight $110 → $115

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $8.59. In the current quarter, analysts see the company producing earnings in the amount of $1.72. Over the last 5 years, FICO has generated revenue in the amount of $6.80% with earnings coming in at 15.60%. On a quarter over quarter basis, earnings have seen movement of 122.00% and revenue has seen movement of 23.20%.

A Look At Share Counts

Investors tend to be interested in the total numbers of shares both outstanding and available. As far as Fair Isaac Corporation, currently there are 28.54M and there is a float of 28.22M. These data mean that out of the total of 28.54M shares of FICO currently in existence today, 28.22M are able to trade hands in the public space.

It’s also important to pay attention to the short percent. Think about it, if a high percentage of the float is shorted, the overall opinion in the market is that the equity is headed for a steep decline. With regard to FICO, the percentage of the float that is shorted currently sits at 1.95%. In general, high short percent of the float is any percentage over 40%. Nonetheless, I have found that any short ratio over 26% is generally a play that comes with hefty risk.

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