FICO Shares Plunge on Mortgage-Scoring Rule Change; Summit Soars on AstraZeneca Deal

Shares of Fair Isaac Corp. (FICO) plunged after a U.S. federal agency announced a major change to mortgage credit-scoring rules, threatening the company's long-standing dominance. In contrast, Summit Therapeutics saw its stock soar following a multi-billion dollar strategic investment by pharmaceutical giant AstraZeneca.

FICO Plummets on Regulatory Shift

Fair Isaac shares tumbled 15% in premarket activity after the Federal Housing Finance Agency (FHFA) announced it would require Fannie Mae and Freddie Mac to use a competitor's score in their mortgage pricing. The move is designed to introduce competition into a market FICO has historically controlled.

The new framework will incorporate the VantageScore model alongside the traditional FICO Classic score, according to the FHFA. This change has raised significant investor concern about the future demand for FICO's products in the critical U.S. mortgage industry.

Deals and Earnings Drive Gains

Several companies saw significant gains driven by corporate actions and strong financial results.

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• Summit Therapeutics (SMMT): The biopharmaceutical company's stock surged 17.1% after AstraZeneca agreed to a $2 billion strategic equity investment. The deal, which values the shares at a 10% premium, will support a collaboration on Summit's bispecific antibody, ivonescimab.
• CarMax (KMX): The used-car retailer rose 3.7% after reporting fiscal second-quarter results that easily beat analyst expectations. The company posted earnings of $1.16 per share against a consensus forecast of 68 cents, with revenue of $7.88 billion topping estimates of $7.06 billion.
• AAR Corp. (AIR): Shares of the aviation services provider climbed 6.9%. The company announced a deal to acquire a 65% interest in MRO Holdings and also reported fiscal first-quarter earnings that surpassed Wall Street forecasts, with revenue growing 24% year-over-year.

Analyst Upgrades Boost Select Stocks

Positive analyst ratings also influenced premarket sentiment for several stocks. Netflix (NFLX) gained 1.4% after Deutsche Bank upgraded the streaming service to 'Buy' from 'Hold', citing the stock's recent multi-month decline.

Similarly, Bloomin' Brands (BLMN), the parent company of Outback Steakhouse, rose 2.7% after JPMorgan upgraded its rating to 'Neutral' from 'Underweight'. The bank more than doubled its price target on the stock to $13, highlighting signs of operational improvement at the restaurant chain.