Zacks Investment Research Lowers FactSet Research Systems Inc. (FDS) to Sell
FactSet Research Systems Inc. (NYSE:FDS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Monday.
According to Zacks, “The Global business information service provider, FactSet’s estimates are moving down off late. Competition from Bloomberg L.P., Dow Jones & Company Inc., MSCI Inc. and Thomson Reuters, which are also introducing substitute products at competitive prices, is a headwind. Furthermore, FactSet’s soft guidance for the forthcoming quarter makes us suspicious about a potential slowdown coming for the company. Nonetheless, we opine that its sustained focus on product innovation across segments with an emphasis on financial services to expand the customer base will continue to help it keep floating despite the current macroeconomic challenges. Moreover, FactSet’s strategy of growing through acquisitions is praiseworthy.”
A number of other equities research analysts have also weighed in on the stock. Bank of America Corp. set a $185.00 price objective on shares of FactSet Research Systems and gave the company a “hold” rating in a report on Thursday, September 15th. Morgan Stanley set a $161.00 price objective on shares of FactSet Research Systems and gave the company a “hold” rating in a report on Wednesday, September 28th. Credit Suisse Group AG initiated coverage on shares of FactSet Research Systems in a report on Sunday, November 20th. They set an “outperform” rating and a $179.00 price objective on the stock. Raymond James Financial Inc. lowered shares of FactSet Research Systems from a “market perform” rating to an “underperform” rating in a report on Tuesday, September 27th. Finally, Goldman Sachs Group Inc. reissued a “sell” rating and set a $125.00 price objective (up from $124.00) on shares of FactSet Research Systems in a report on Friday, September 30th. Three investment analysts have rated the stock with a sell rating, ten have given a hold rating and one has given a buy rating to the stock. FactSet Research Systems has an average rating of “Hold” and an average target price of $169.67.
Shares of FactSet Research Systems (NYSE:FDS) traded up 0.24% during midday trading on Monday, reaching $160.79. The company’s stock had a trading volume of 337,093 shares. The firm has a market capitalization of $6.42 billion, a P/E ratio of 19.63 and a beta of 0.74. FactSet Research Systems has a 12-month low of $135.95 and a 12-month high of $183.17. The stock has a 50-day moving average of $156.95 and a 200 day moving average of $163.97.
FactSet Research Systems (NYSE:FDS) last released its quarterly earnings results on Tuesday, September 27th. The company reported $1.69 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $1.70 by $0.01. FactSet Research Systems had a return on equity of 48.65% and a net margin of 30.06%. The firm earned $287.30 million during the quarter. During the same quarter in the prior year, the company earned $1.48 earnings per share. The company’s revenue was up 9.7% on a year-over-year basis. Equities research analysts predict that FactSet Research Systems will post $7.03 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 20th. Shareholders of record on Wednesday, November 30th will be given a $0.50 dividend. The ex-dividend date of this dividend is Monday, November 28th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 1.24%. FactSet Research Systems’s dividend payout ratio (DPR) is currently 24.30%.
In other FactSet Research Systems news, SVP Rachel Rebecca Stern sold 1,065 shares of the company’s stock in a transaction dated Monday, October 10th. The shares were sold at an average price of $158.79, for a total value of $169,111.35. Following the completion of the transaction, the senior vice president now owns 978 shares in the company, valued at $155,296.62. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Frederick Philip Snow sold 6,250 shares of the company’s stock in a transaction dated Wednesday, October 5th. The stock was sold at an average price of $158.22, for a total transaction of $988,875.00. Following the completion of the transaction, the chief executive officer now owns 10,551 shares of the company’s stock, valued at approximately $1,669,379.22. The disclosure for this sale can be found here. 2.70% of the stock is currently owned by company insiders.
Several hedge funds and other institutional investors have recently modified their holdings of FDS. Price T Rowe Associates Inc. MD increased its position in FactSet Research Systems by 0.8% in the third quarter. Price T Rowe Associates Inc. MD now owns 2,123,146 shares of the company’s stock valued at $344,162,000 after buying an additional 16,178 shares during the period. Credit Suisse AG increased its position in FactSet Research Systems by 5.7% in the third quarter. Credit Suisse AG now owns 73,612 shares of the company’s stock valued at $11,931,000 after buying an additional 3,970 shares during the period. Ameritas Investment Partners Inc. increased its position in FactSet Research Systems by 46.4% in the third quarter. Ameritas Investment Partners Inc. now owns 18,251 shares of the company’s stock valued at $2,958,000 after buying an additional 5,787 shares during the period. Verition Fund Management LLC bought a new position in FactSet Research Systems during the third quarter valued at $811,000. Finally, Jane Street Group LLC bought a new position in FactSet Research Systems during the third quarter valued at $728,000. Institutional investors and hedge funds own 94.75% of the company’s stock.
About FactSet Research Systems
FactSet Research Systems Inc (FactSet) is a provider of integrated financial information and analytical applications to the global investment community. The Company operates through three segments based on geographic business activities: the U.S., Europe and Asia Pacific. Sales, consulting, data collection, product development and software engineering are the primary functional groups within the U.S., Europe and Asia Pacific segments that provide global financial and economic information to investment managers, investment banks and other financial services professionals.
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