In a significant transaction, Mark R. Scadina, the Executive Vice President, General Counsel, and Secretary of Fair Isaac Corp (NYSE:FICO), has sold a notable portion of his holdings in the company. The executive offloaded shares with a total value exceeding $10 million, according to the latest regulatory filings.
The series of transactions, which took place on May 23 and 24, saw Scadina sell a total of 7,733 shares of Fair Isaac common stock. The sale prices for these shares ranged from $1,371.00 to $1,375.24, illustrating a slight fluctuation in the trading price over the two-day period.
The transactions began on May 23 with the sale of 156 shares at $1,371.00 each, followed by 249 shares sold at a weighted average price of $1,372.72, and another 18 shares at $1,373.69. The sales continued on May 24 with larger dispositions, including 4,019 shares sold at an average price of $1,371.30, 291 shares at $1,372.52, 2,846 shares at $1,374.32, and finally, 154 shares at $1,375.24.
Following these transactions, Scadina's direct ownership in the company has been reduced to 24,919 shares. Additionally, the executive holds an indirect interest through the Scadina Revocable Trust, which owns 85,081 shares of Fair Isaac common stock.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on their company's current valuation and future prospects. While the reasons behind Scadina's decision to sell are not disclosed in the filings, the disclosed transactions do provide a transparent view of the executive's trading activities.
Fair Isaac Corp, known for its FICO credit scoring system, is a data analytics company that specializes in credit scoring services. The company's stock is publicly traded and is watched by investors who value the insights provided by insider trading patterns.
The filings, prepared by Carrie H. Darling, Attorney-in-fact, were submitted on May 28, as required by SEC regulations. The detailed footnotes in the document indicate that the transactions were executed in multiple trades, with the reported prices reflecting the weighted average sale price. Scadina has committed to providing full information regarding the number of shares and the prices at which the transactions were effected upon request.
InvestingPro Insights
In light of the recent insider trading activity at Fair Isaac Corp (NYSE:FICO), where Mark R. Scadina sold over $10 million worth of shares, investors may be seeking additional context to understand the company's current market position. According to InvestingPro data, FICO's market capitalization stands at a robust $34.25 billion, underscoring its significant presence in the credit scoring sector.
Furthermore, the company's impressive gross profit margin of 79.74% for the last twelve months as of Q2 2024 indicates a strong ability to manage costs relative to revenue—a factor that might reassure investors about the company's financial health despite the insider sale. However, it's also worth noting that FICO is trading at a high earnings multiple with a P/E ratio of 71.73, which suggests that the stock may be priced optimistically relative to its earnings.
An InvestingPro Tip highlights that FICO has been trading near its 52-week high, with a price 95.46% of that peak. This may have been a contributing factor in Scadina's decision to sell, as executives often divest shares when they believe the stock is well-valued. For investors looking for a deeper dive into FICO's financials and future outlook, there are additional InvestingPro Tips available on https://www.investing.com/pro/FICO. Currently, there are 17 more tips listed, providing a comprehensive analysis of FICO's performance and valuation metrics.
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