Shares of Fair Isaac Corp. (FICO), the financial analytics firm known for its credit scores, fell from an all-time high, falling 4.2 percent and posting the weakest daily performance of any stock in the S&P 500.

The day’s loss followed filings with the U.S. Securities and Exchange Commission (SEC) that revealed that two key FICO executives had sold shares in the company.

Company executives sell FICO shares

SEC filings on Tuesday and Wednesday revealed that several company insiders reduced their holdings in the stock.

Steven Weber, Fair Isaac’s chief financial officer, sold 1,800 shares valued at over $3 million in a transaction on August 9. Then on August 12, Executive Vice President Thomas Bowers sold 3,000 shares valued at over $5 million in a sale.

To maintain transparency in the markets, any time there is a material change in a company insider’s stock holdings, the company must file SEC Form 4 within two business days of the transaction. When executives sell shares of their own company, investors often interpret this as a lack of confidence in the company’s future performance.

Sales follow profit increase after results announcement

FICO released its latest earnings report two weeks ago. Earnings per share (EPS) fell slightly short of estimates for the third quarter of fiscal 2024, but revenue beat forecasts. Revenue in the company’s Scores division, which includes its business-to-business and business-to-consumer solutions, rose 20% year over year. FICO also raised its full-year revenue and profit forecast.

Before the earnings release on the last day of July, the stock closed at $1,600 per share, but began rising in August, reaching an all-time high of over $1,800 on August 14.

Thursday’s decline marked a retreat from that record. Even after the day of losses, FICO shares are still up nearly 50% in 2024.