Schwab Network on $FICO (Oct 26, 2026)
Wells Fargo downgraded FICO to equal weight from overweight and cut its target to 735 from 800; shares fell more than 6%. Keeping its mortgage valuation rate unchanged, and holding its $10 price to match competition, is expected to limit the profit growth predicted from price increases — good for consumers, not shareholders.
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Well, last but not least, the rating was lowered. FICO rating downgraded. Yes, Wells Fargo has downgraded Isaac Corp's FICO rating to "equal weight" from "overweight". So, they are retreating here. They lowered the target price to 735, from 800.
So, FICO stock has seen a significant drop today, with its shares currently down by more than 6% . The concern lies in FICO's decision to keep the mortgage valuation rate unchanged.
They believe this will limit the profit growth that Wells predicted from the price increases. Therefore, what is good for the consumer is not good for the shareholder.
In short, FICO decided to keep its price at $10 for lenders enrolled in this preferred program. This is simply because they are trying to keep up with the competition. In other words, this package includes the classic FICO rating , which we all check annually, and the newer FICO rating system, which aims to predict borrowers' ability to repay their mortgages.
Okay, Diane, the stock is going down now. It has now fallen by 6.2%.