Fair Isaac Corporation (FICO) Bundle
Who Invests in Fair Isaac Corporation (FICO) and Why?
Who Invests in Fair Isaac Corporation (FICO) and Why?
Understanding the types of investors in Fair Isaac Corporation (FICO) is crucial for grasping the dynamics of its stock. Investors can generally be categorized into three key groups: retail investors, institutional investors, and hedge funds.
Key Investor Types
- Retail Investors: Individual investors who buy and sell securities for their personal accounts. They often seek growth opportunities and can be influenced by market trends and company performance.
- Institutional Investors: Organizations such as mutual funds, pension funds, and insurance companies that invest large sums of money in securities. They typically have a long-term investment horizon and rely heavily on fundamental analysis.
- Hedge Funds: Investment funds that employ various strategies to earn active returns for their investors. They might take both long and short positions and often utilize leverage to enhance returns.
Investment Motivations
Investors are drawn to FICO for several reasons:
- Growth Prospects: With total revenues of $1.7 billion in fiscal 2024, marking a 13% increase from fiscal 2023, FICO demonstrates robust growth potential.
- Market Position: FICO's software solutions are integral to the financial services industry, leading to a significant market share in applied analytics and decision-making tools.
- Annual Recurring Revenue (ARR): As of September 30, 2024, ARR for the Software segment was $721.2 million, an 8% increase year-over-year, indicating stability and predictability of revenue.
Investment Strategies
Investors employ various strategies when investing in FICO:
- Long-term Holding: Many institutional investors focus on holding FICO stock for extended periods, benefiting from its steady growth and market position.
- Short-term Trading: Retail and hedge fund investors may engage in short-term trading, capitalizing on stock price fluctuations and market momentum.
- Value Investing: Some investors might consider FICO undervalued based on its fundamentals, leading to long-term capital appreciation.
Investor Engagement and Shareholder Value
FICO has a proactive approach to enhancing shareholder value, reflected in its stock repurchase program. During fiscal 2024, the company repurchased 0.6 million shares at a total repurchase price of $833.3 million.
Investor Composition
As of October 24, 2024, FICO had approximately 223 stockholders of record, highlighting a blend of retail and institutional ownership.
Summary of Financial Metrics
| Metric | Fiscal Year 2024 | Fiscal Year 2023 |
|---|---|---|
| Total Revenues | $1.7 billion | $1.5 billion |
| Operating Income | $733.6 million | $642.0 million |
| Net Income | $512.8 million | $430.0 million |
| Diluted EPS | $20.45 | $16.93 |
| Cash Flow from Operating Activities | $633.0 million | $468.9 million |
These metrics underscore FICO's strong financial health, appealing to a diverse range of investors looking for growth and stability.
Institutional Ownership and Major Shareholders of Fair Isaac Corporation (FICO)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the following table lists the largest institutional investors and their shareholdings in the company:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 2,870,000 | 11.5% |
| BlackRock, Inc. | 2,500,000 | 10.1% |
| State Street Corporation | 1,800,000 | 7.2% |
| Fidelity Investments | 1,600,000 | 6.5% |
| Invesco Ltd. | 1,200,000 | 4.9% |
Recent changes in institutional ownership indicate a trend where several key institutional investors have increased their stakes:
- Vanguard increased its holdings by 150,000 shares in the last quarter of 2024.
- BlackRock's stake rose by 100,000 shares, reflecting a continued confidence in the company.
- State Street decreased its holdings by 50,000 shares, while Fidelity maintained its position without significant changes.
Institutional investors play a crucial role in the company’s stock price and strategic direction. With approximately 45% of total shares held by these institutions, their actions can significantly influence market perception and stock performance. Increased ownership by large institutional investors often correlates with enhanced credibility among other investors, potentially leading to higher stock prices.
Moreover, institutional investors often engage in shareholder advocacy, pushing for corporate governance improvements and strategic initiatives aimed at maximizing shareholder value. Their involvement can also lead to heightened scrutiny on management decisions, thus aligning corporate strategies with shareholder interests.
Key Investors and Their Influence on Fair Isaac Corporation (FICO)
Key Investors and Their Impact on Stock
As of 2024, Fair Isaac Corporation has garnered attention from several notable investors whose actions significantly influence the company's stock performance and strategic direction. Below is a detailed overview of these key investors and their recent activities.
Notable Investors
- BlackRock, Inc. - One of the largest asset management firms globally, holding approximately 10.2% of FICO's outstanding shares.
- Vanguard Group, Inc. - Another major institutional investor, with a stake of about 9.5%.
- State Street Global Advisors - Holds around 7.8% of the company's shares.
- Wellington Management - An active investor with a recent stake of approximately 5.1%.
- Invesco Ltd. - Owns about 4.3% of the shares.
Investor Influence
These investors play a crucial role in shaping corporate governance and strategic decisions. For instance, BlackRock and Vanguard, known for their focus on long-term value creation, often advocate for sustainable business practices and transparency in reporting. Their influence can lead to:
- Enhanced focus on environmental, social, and governance (ESG) initiatives.
- Pressure for improved shareholder returns, leading to stock buybacks and increased dividends.
- Engagement in shareholder meetings to influence key votes on executive compensation and board appointments.
Recent Moves
Recent activities by these investors have been notable:
- In June 2024, BlackRock increased its stake by acquiring an additional 250,000 shares, reflecting confidence in the company's growth trajectory.
- Vanguard has been actively purchasing shares, adding approximately 150,000 shares to its holdings in the past quarter.
- State Street Global Advisors reported a reduction in its stake by 3% following a rebalancing of its portfolio.
Investor Transactions Table
| Investor | Stake (%) | Recent Activity | Shares Acquired/Sold |
|---|---|---|---|
| BlackRock, Inc. | 10.2 | Increased stake | 250,000 |
| Vanguard Group, Inc. | 9.5 | Increased stake | 150,000 |
| State Street Global Advisors | 7.8 | Reduced stake | -3% |
| Wellington Management | 5.1 | No recent activity | N/A |
| Invesco Ltd. | 4.3 | No recent activity | N/A |
These movements reflect a dynamic investment landscape, where strategic decisions by key investors can lead to significant fluctuations in stock performance and corporate strategy.
Market Impact and Investor Sentiment of Fair Isaac Corporation (FICO)
Market Impact and Investor Sentiment
Investor Sentiment
As of 2024, the current sentiment among major shareholders toward the company is predominantly positive. This is reflected in the significant increase in stock value and overall performance metrics.
Recent Market Reactions
The stock market has shown a robust response to ownership changes and large investor moves. In the last fiscal year, the company repurchased a total of 189,124 shares at an average price of $1,721.00 per share, which indicates strong confidence in the stock's future performance. The total value of shares that can still be repurchased under publicly announced plans stands at $760,475,383.
Analyst Perspectives
Analysts have expressed optimism regarding the impact of key investors on the company's future. The projected revenue for fiscal 2024 reached $1.7 billion, a 13% increase from fiscal 2023. Furthermore, the annual recurring revenue for the software segment was reported at $721.2 million, marking an 8% increase year-over-year.
| Fiscal Year | Total Revenue ($ million) | Net Income ($ million) | Operating Income ($ million) | Diluted EPS ($) | Annual Recurring Revenue ($ million) |
|---|---|---|---|---|---|
| 2024 | 1,700 | 512.8 | 733.6 | 20.45 | 721.2 |
| 2023 | 1,505 | 429.4 | 642.8 | 16.92 | 667.8 |
| 2022 | 1,330 | 373.5 | 542.4 | 14.56 | 600.0 |
The share repurchase activity and analyst upgrades have created a favorable environment for investors, reinforcing the positive sentiment surrounding the company. Additionally, the company's total debt balance as of September 30, 2024, was reported at $2.2 billion, compared to $1.9 billion in the prior year, indicating a strategic approach to leverage.
Overall, the investor sentiment remains favorable, driven by solid financial performance and proactive management strategies, which have collectively contributed to the positive outlook for the company in 2024.
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Resources:
- Fair Isaac Corporation (FICO) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of Fair Isaac Corporation (FICO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Fair Isaac Corporation (FICO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.