Jim Cramer Defends Fair Isaac After 6% Dip Driven by Regulatory Headwinds

Fair Isaac Corporation (NYSE:FICO) is one of the stocks that Jim Cramer spoke about. Cramer mentioned that the stock’s sell-off “seemed wrong” to him, as he remarked:

“What the heck just happened to FICO, the predictive analytics and data science company, best known as the keeper of the FICO credit score. A company that we’ve liked for a very long time, we love their business model. Historically, this has been one of the best-performing stocks in the past 20 years, but lately it’s come under attack by the new director of the Federal Housing Finance Agency, who’s called FICO a monopoly.

Just a couple of weeks ago, the FHFA pushed through new rules so that lenders can use different credit score models to issue mortgages that are later sold to Fannie Mae and Freddie Mac. Now, look, I was hoping FICO could turn things around this earnings season, but last night, they reported, and while the quarter results were terrific, most of the conference call unfortunately had to be devoted to the FHFA drama. Initially, the stock roared in after-hours trading. I thought that was right, but then it rolled over, and then it finished down 6% today. That seemed wrong to me.”

Photo by Adam Nowakowski on Unsplash

Fair Isaac (NYSE:FICO) provides software and analytics tools that support automated decision-making across credit scoring, fraud detection, and customer management.

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Disclosure: None. This article is originally published at Insider Monkey.