Fair Isaac director McMorris sells $2.59m in stock

In a recent transaction, Marc F. McMorris, a director at Fair Isaac Corp (NYSE:FICO), sold shares of the company's common stock, resulting in a total sale value of approximately $2.59 million. The shares were sold on August 13, 2024, at an average price of $1749.33.

The sale followed an acquisition of shares by McMorris on the same day. The director acquired 1,478 shares of Fair Isaac Corp's common stock at a price of $475.46 per share, totaling around $702,729. The buy and sell transactions were part of McMorris's stock trading activities for the period.

Fair Isaac Corp, known for its data analytics and credit scoring services, has seen its stock price reflect the company's performance and market position. The transactions by McMorris were executed directly and are part of the regular financial disclosures made by company insiders.

Investors often monitor insider transactions as they may provide insights into the executives' confidence in the company's prospects. In the case of Fair Isaac Corp, the recent sale by Director McMorris could be of interest to current and potential shareholders.

The company's shares, traded under the ticker FICO, are subject to regular trading on the New York Stock Exchange. Investors looking to follow Fair Isaac Corp's stock performance can track the NYSE:FICO ticker for the latest market activity.

In other recent news, FICO reported a solid third quarter in 2024, with a 12% increase in revenues to $448 million compared to the previous year. Despite a slight 2% decrease in GAAP net income to $126 million, the company saw a 9% rise in non-GAAP net income to $156 million. A standout accomplishment for the quarter was the record free cash flow of $206 million, a 69% increase from the previous year.

FICO has also announced a new authorization for share repurchases up to $1 billion. The Scores segment of the company saw a 20% revenue increase, largely attributed to B2B and mortgage originations, while the Software segment grew by 5%, boosted by SaaS software. In light of these developments, FICO has raised its full fiscal year guidance, now expecting revenues to reach $1.70 billion.

These are the recent developments from FICO, which also anticipates rate cuts in the future that could potentially boost volumes. The company noted a pullback in subprime market originations due to market uncertainty, but expects margin expansion in the software segment for the next quarter. Despite facing criticism over its pricing, FICO remains committed to its strategy, focusing on accessibility and adoption.

InvestingPro Insights

As investors digest the recent insider transactions at Fair Isaac Corp (NYSE:FICO), it's worth considering the broader financial context in which these trades occur. According to InvestingPro data, Fair Isaac Corp boasts a robust gross profit margin of 79.35% over the last twelve months as of Q3 2024, underscoring the company's efficiency in managing its cost of goods sold relative to revenue.

Additionally, the company has demonstrated a healthy revenue growth of 12.33% in Q3 2024, indicating an upward trajectory in its financial performance. Despite the impressive gross profit margins and revenue growth, InvestingPro Tips suggest caution due to the stock trading at a high earnings multiple, with a P/E ratio of 90.25. This could signal that the stock is priced optimistically relative to its earnings.

Moreover, the stock's price has been on a notable uptrend, as evidenced by the 107.76% one-year price total return as of the latest data, positioning the stock near its 52-week high. This performance is a testament to the company's strong market position and investor confidence over the past year.

For investors seeking a deeper analysis of Fair Isaac Corp's financial health and future prospects, InvestingPro offers a wealth of additional tips, including 19 more insights that are available at https://www.investing.com/pro/FICO. These tips provide a comprehensive view of the company's valuation multiples, debt levels, and profitability forecasts, which are crucial for making informed investment decisions.

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