On October 13, 2023, James Wehmann, the Executive Vice President of Fair Isaac Corp (FICO, Financial), sold 2,836 shares of the company. This move is part of a series of insider transactions that have been taking place over the past year.
James Wehmann has been with Fair Isaac Corp for several years, serving in various leadership roles. His experience and knowledge of the company's operations make his stock transactions particularly noteworthy for investors and market watchers.
Fair Isaac Corp, commonly known as FICO, is a data analytics company based in the United States. It is best known for producing the most widely used consumer credit scores that financial institutions use in deciding whether to lend money or issue credit. The company also provides decision-making services, analytics software, and tools to many industries, including banking, insurance, and healthcare.
Over the past year, the insider has sold a total of 18,508 shares and has not made any purchases. This trend is mirrored in the company's overall insider transactions, with 23 sells and 0 buys over the same period.
The relationship between insider transactions and stock price is often closely watched by investors. In the case of Fair Isaac Corp, the stock was trading at $889.3 per share on the day of the insider's recent sell, giving the company a market cap of $22.04 billion. This is significantly higher than the company's GuruFocus Value of $648.90 per share.
The price-earnings ratio of Fair Isaac Corp is 53.83, which is higher than both the industry median of 26.23 and the company's historical median. This suggests that the stock is currently overvalued. The price-to-GF-Value ratio of 1.37 further supports this assessment.
The GF Value is a proprietary estimate of intrinsic value developed by GuruFocus. It is calculated based on historical multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts. In the case of Fair Isaac Corp, the GF Value suggests that the stock is significantly overvalued.
In conclusion, the recent sell by James Wehmann, along with the overall trend of insider sells at Fair Isaac Corp, may suggest that insiders believe the stock is currently overvalued. However, investors should also consider other factors, such as the company's financial health and market conditions, before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
