In a recent transaction, Joanna Rees, a director at Fair Isaac Corp (NYSE:FICO), sold 3,961 shares of the company's common stock, netting a total of over $6.9 million. The sale was executed at a price of $1750.00 per share. This transaction has drawn the attention of investors as it reflects a significant change in the executive's holdings in the company.
On the same day, prior to the sale, Rees also acquired shares through the exercise of options. The options were exercised at prices ranging from $169.94 to $247.82, with a total transaction value of approximately $878,501. The options exercised totaled 3,961 shares, aligning with the number of shares sold.
The transactions took place on September 5, 2024, and were publicly reported in a Form 4 document filed with the Securities and Exchange Commission on September 9, 2024. These transactions are part of the standard disclosures that company insiders make when buying or selling shares in their own firms.
Following the sale, Rees's direct holdings in Fair Isaac Corp have been reduced to zero, according to the filing. However, it is noted that there are indirect holdings of 20,118 shares in the name of the John Hamm & Joanna Rees Trust.
Fair Isaac Corp, known for its FICO credit scoring system, is a data analytics company based in Bozeman, Montana. It is widely recognized for providing credit scoring services to financial institutions and consumers, helping to facilitate credit decisions globally.
Investors often monitor insider transactions as they can provide insights into an executive’s view of the company’s future prospects. However, these transactions may be subject to various personal financial considerations and should not be interpreted as a definitive indicator of a company's performance.
Shareholders and potential investors in Fair Isaac Corp can stay informed of further insider transactions by monitoring SEC filings and company announcements.
In other recent news, Fair Isaac Corporation, also known as FICO, has been making notable strides in its financial performance. The company reported a 12% increase in revenues for the third quarter of 2024, reaching $448 million. Despite a slight 2% dip in GAAP net income, which settled at $126 million, non-GAAP net income rose by 9%, hitting $156 million. A significant highlight was FICO's record free cash flow of $206 million for the quarter, marking a 69% increase from the previous year.
A new authorization for share repurchases up to $1 billion was also announced by FICO. The company's Scores segment witnessed a 20% revenue increase, primarily driven by B2B and mortgage originations, while the Software segment grew by 5%, propelled by SaaS software. FICO has raised its full fiscal year guidance, now expecting revenues to hit $1.70 billion.
In terms of future expectations, FICO is projecting a GAAP net income of $500 million, with earnings per share of $19.90, and a non-GAAP net income forecasted at $582 million, with earnings per share of $23.16. These recent developments were further bolstered by an endorsement from Oppenheimer, which initiated coverage on FICO's stock with an Outperform rating, signaling optimism about the company's future performance.
InvestingPro Insights
As investors take note of the recent insider transactions at Fair Isaac Corp, it's essential to consider the company's financial health and market performance to gain a broader perspective. According to InvestingPro data, FICO has a robust market capitalization of $43.51 billion, underscoring its significant presence in the data analytics sector.
FICO's impressive gross profit margin of 79.35% for the last twelve months as of Q3 2024 indicates efficient operations and strong pricing power. This financial metric is particularly relevant as it showcases the company's ability to retain a substantial portion of its revenue after accounting for the cost of goods sold, which can be a critical factor for investors assessing the company's profitability.
Moreover, FICO's stock has experienced a high return over the last year, with a 92.73% price total return, reflecting investor confidence and market recognition of the company's value. This aligns with the InvestingPro Tip highlighting FICO's strong return over the last three months, with a 32.33% price total return, suggesting a positive short-term investment sentiment.
However, it's worth noting that FICO is trading at a high earnings multiple, with a P/E ratio of 91.61. This suggests that the stock might be priced optimistically relative to its earnings, which could be a point of consideration for value-focused investors. For those interested in exploring this further, there are additional 17 InvestingPro Tips available, offering deeper insights into FICO's valuation and financial performance.
For investors seeking to make informed decisions, these metrics and tips can provide valuable context alongside insider trading activity. To access a comprehensive list of InvestingPro Tips for Fair Isaac Corp, visit https://www.investing.com/pro/FICO.
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