FactSet Research Systems (NYSE:FDS) Trading Down 6.2% – Should You Sell?

FactSet Research Systems Inc. (NYSE:FDS) shares were down 6.2% during mid-day trading on Tuesday . The company traded as low as $271.91 and last traded at $268.4410. Approximately 241,832 shares were traded during mid-day trading, a decline of 50% from the average daily volume of 479,415 shares. The stock had previously closed at $286.33.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the stock. Wolfe Research restated an “underperform” rating and issued a $290.00 price objective on shares of FactSet Research Systems in a report on Friday, November 14th. Wells Fargo & Company upped their price objective on shares of FactSet Research Systems from $260.00 to $265.00 and gave the stock an “underweight” rating in a report on Wednesday, January 14th. Morgan Stanley set a $307.00 price objective on shares of FactSet Research Systems and gave the stock an “equal weight” rating in a research report on Wednesday, December 17th. BMO Capital Markets decreased their price target on FactSet Research Systems from $311.00 to $305.00 and set a “market perform” rating on the stock in a research note on Monday, December 22nd. Finally, Zacks Research upgraded FactSet Research Systems from a “strong sell” rating to a “hold” rating in a research report on Friday, December 5th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, ten have assigned a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus price target of $313.00.

FactSet Research Systems Price Performance

The company has a market capitalization of $9.36 billion, a PE ratio of 16.04, a P/E/G ratio of 2.46 and a beta of 0.75. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.54 and a current ratio of 1.54. The company’s 50-day simple moving average is $285.65 and its 200-day simple moving average is $317.86.

FactSet Research Systems (NYSE:FDS) last released its quarterly earnings data on Thursday, December 18th. The business services provider reported $4.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.36 by $0.15. The firm had revenue of $607.62 million during the quarter, compared to analysts’ expectations of $599.69 million. FactSet Research Systems had a return on equity of 30.49% and a net margin of 25.40%.FactSet Research Systems’s revenue was up 6.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $4.37 earnings per share. FactSet Research Systems has set its FY 2026 guidance at 16.900-17.600 EPS. As a group, sell-side analysts anticipate that FactSet Research Systems Inc. will post 17.21 earnings per share for the current year.

FactSet Research Systems Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, December 18th. Shareholders of record on Friday, November 28th were paid a $1.10 dividend. The ex-dividend date was Friday, November 28th. This represents a $4.40 annualized dividend and a dividend yield of 1.7%. FactSet Research Systems’s dividend payout ratio (DPR) is presently 27.99%.

FactSet Research Systems announced that its Board of Directors has authorized a share repurchase program on Thursday, December 18th that authorizes the company to repurchase $600.00 million in shares. This repurchase authorization authorizes the business services provider to repurchase up to 5.4% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its stock is undervalued.

Insider Activity

In related news, Director Malcolm Frank sold 2,572 shares of the stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $295.70, for a total value of $760,540.40. Following the completion of the sale, the director directly owned 879 shares of the company’s stock, valued at approximately $259,920.30. This represents a 74.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Goran Skoko purchased 500 shares of the company’s stock in a transaction dated Thursday, November 6th. The shares were acquired at an average price of $252.93 per share, for a total transaction of $126,465.00. Following the purchase, the executive vice president owned 9,192 shares in the company, valued at $2,324,932.56. The trade was a 5.75% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders own 1.20% of the company’s stock.

Institutional Investors Weigh In On FactSet Research Systems

A number of hedge funds and other institutional investors have recently made changes to their positions in FDS. Vanguard Group Inc. increased its holdings in FactSet Research Systems by 2.2% during the third quarter. Vanguard Group Inc. now owns 4,932,382 shares of the business services provider’s stock worth $1,413,078,000 after buying an additional 107,184 shares during the last quarter. State Street Corp grew its position in shares of FactSet Research Systems by 1.2% in the 3rd quarter. State Street Corp now owns 1,961,231 shares of the business services provider’s stock valued at $561,873,000 after acquiring an additional 23,660 shares during the period. Loomis Sayles & Co. L P increased its stake in shares of FactSet Research Systems by 1.6% during the 2nd quarter. Loomis Sayles & Co. L P now owns 1,508,052 shares of the business services provider’s stock worth $674,522,000 after purchasing an additional 23,900 shares during the last quarter. Ninety One UK Ltd increased its stake in shares of FactSet Research Systems by 1.2% during the 3rd quarter. Ninety One UK Ltd now owns 1,206,890 shares of the business services provider’s stock worth $345,762,000 after purchasing an additional 14,256 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of FactSet Research Systems by 2.4% in the 2nd quarter. Geode Capital Management LLC now owns 1,162,256 shares of the business services provider’s stock valued at $518,683,000 after purchasing an additional 27,035 shares during the period. 91.24% of the stock is currently owned by institutional investors and hedge funds.

About FactSet Research Systems

FactSet Research Systems Inc operates as a global provider of integrated financial data and analytics to the investment community. Founded in 1978 and headquartered in Norwalk, Connecticut, the company offers a unified platform that aggregates content from thousands of sources, delivering real-time and historical market data, company fundamentals, estimates, fixed-income information and proprietary analytics to portfolio managers, research analysts, investment bankers and risk officers.

The company’s core products include the FactSet Workstation, an application offering customizable screening, charting, portfolio analysis and news; APIs and data feeds for seamless integration into proprietary systems; and cloud-based solutions for thematic research and quantitative strategies.