FICO Tumbles 1.28% on Regulatory Shifts and Institutional Selling as $610M Volume Ranks 161st in Daily Liquidity

Fair Isaac (FICO) closed 1.28% lower on August 14, with a trading volume of $610 million, ranking 161st in daily liquidity. The decline followed a regulatory shift impacting credit reporting and institutional selling activity. Analysts highlighted concerns over the Federal Housing Finance Agency’s (FHFA) revised guidelines, which permit mortgage lenders to use alternative credit assessments, potentially reducing demand for FICO’s traditional scoring models. Institutional investors, including Swiss National Bank and ING Groep, reduced holdings, while others like Deutsche Bank and Mitsubishi UFJ Asset Management added to their positions.

Recent earnings reports showed FICO exceeding revenue expectations in Q3 2025, with management raising annual guidance. However, the stock hit a 12-month low amid downgrades from Raymond James and Oppenheimer, who cited regulatory headwinds and competitive pressures. CEO defense of pricing strategies against FHFA criticism failed to reassure investors, as the market remains sensitive to policy shifts in credit scoring. Institutional selling, including trades by Mackenzie Financial and Forsta AP Fonden, further pressured the stock.

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