Fair Isaac EVP sells over $5.9 million in company stock

Fair Isaac Corporation (NYSE:FICO), a leading analytics software company, disclosed a significant stock transaction by EVP, General Counsel & Secretary, Mark R. Scadina. According to the recent filing, Scadina sold a total of $5,999,619 worth of the company's common stock.

The transactions, which took place on August 8, 2024, involved the sale of company stock at prices ranging from $1712.0472 to $1716.72. The sales were executed in multiple trades, and the specific prices per share reflect the weighted average sale price. The filing also revealed that Scadina acquired 3,500 shares through the exercise of options at a price of $185.05, amounting to a total of $647,675.

Investors and market watchers often look to insider selling and buying as a signal of confidence in the company's future prospects. In the case of Fair Isaac, the recent transactions by a high-level executive may attract attention as they represent a substantial amount of stock.

Following the sales, Scadina's direct holdings in the company decreased, but he still owns a significant number of shares, including indirect ownership through the Scadina Revocable Trust, which holds 85,081 shares of Fair Isaac common stock.

Fair Isaac Corporation is known for its FICO credit scoring system, which is widely used by financial institutions to help determine creditworthiness. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol FICO.

The transactions are detailed in a Form 4 filing with the Securities and Exchange Commission, which provides transparency into the trading activities of company insiders.

In other recent news, FICO reported a strong third quarter of 2024 with a 12% revenue increase to $448 million year-over-year. Despite a slight 2% dip in GAAP net income to $126 million, non-GAAP net income rose by 9% to $156 million. The company also achieved a record free cash flow of $206 million, marking a significant 69% increase from the previous year.

FICO also announced a new authorization for share repurchases up to $1 billion, highlighting the company's confidence in its financial health. The Scores segment saw a 20% revenue increase, primarily driven by B2B and mortgage originations, while the Software segment grew by 5%, fueled 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 recent developments that reflect a robust performance by FICO, underpinned by strong growth in its Scores and Software segments.

InvestingPro Insights

As Fair Isaac Corporation (FICO) makes headlines with its executive-level stock transactions, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, FICO boasts an impressive gross profit margin of 79.35% over the last twelve months as of Q3 2024, highlighting the company's ability to maintain profitability. Despite the recent insider selling, the company's solid fundamentals may continue to instill confidence among shareholders.

InvestingPro Tips indicate that FICO has experienced a significant return over the last week, with a price total return of 10.77%. Additionally, the stock is trading near its 52-week high, currently at 97.73% of this peak. This could suggest a strong market sentiment towards the company, although it's worth noting that the Relative Strength Index (RSI) suggests the stock is in overbought territory, which may indicate a potential price correction ahead.

The current P/E ratio stands at a high of 88.68, which, when coupled with a PEG ratio of 5.75, suggests that the stock is trading at a premium relative to near-term earnings growth expectations. Investors valuing growth at a reasonable price might exercise caution, considering these valuation metrics.

For those looking to delve deeper into Fair Isaac Corporation's financials and market performance, InvestingPro offers additional insights. There are 19 more InvestingPro Tips available, providing a comprehensive analysis that can help investors make well-informed decisions. Interested readers can find these tips and more detailed metrics on the InvestingPro platform.

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