Zacks Investment Research Downgrades FactSet Research Systems (FDS) to Sell
FactSet Research Systems (NYSE:FDS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Thursday.
According to Zacks, “FactSet’s declining client-retention ratio makes us increasingly cautious about its near-term performance. The company’s client-retention ratio in fourth-quarter fiscal 2017 came in at 91%, tanking 300 basis points (bps) from the year-ago quarter and 100 bps from the previous quarter. It should be noted that a strong client retention ratio signifies more stable revenues. Although, the company has been able to add new clients every quarter, but failing in retaining the old clients will negatively impact its near-term top-line growth. Furthermore, increasing competition from Bloomberg, Dow Jones & Company, MSCI and Thomson Reuters, which are also coming up with substitute products at competitive prices, is a material headwind for the company. Notably, FactSet has underperformed the industry to which it belongs to in the year-to-date period.”
A number of other research analysts have also recently commented on the company. Credit Suisse Group reissued an “outperform” rating and issued a $205.00 price target (up from $200.00) on shares of FactSet Research Systems in a report on Monday, October 23rd. Goldman Sachs Group began coverage on FactSet Research Systems in a report on Wednesday, November 8th. They set a “neutral” rating and a $194.00 price objective on the stock. Morgan Stanley upped their price objective on FactSet Research Systems from $166.00 to $171.00 and gave the stock an “equal weight” rating in a report on Monday, October 23rd. Northcoast Research raised FactSet Research Systems from a “neutral” rating to a “buy” rating and set a $195.00 price objective on the stock in a report on Thursday, September 21st. Finally, Stifel Nicolaus reaffirmed a “hold” rating and set a $169.00 price objective (up from $163.00) on shares of FactSet Research Systems in a report on Wednesday, September 27th. Three investment analysts have rated the stock with a sell rating, eight have given a hold rating and two have issued a buy rating to the stock. The stock presently has an average rating of “Hold” and an average price target of $180.17.
FactSet Research Systems (NYSE:FDS) last posted its quarterly earnings results on Tuesday, September 26th. The business services provider reported $1.90 EPS for the quarter, topping the Zacks’ consensus estimate of $1.89 by $0.01. FactSet Research Systems had a return on equity of 55.76% and a net margin of 21.15%. The company had revenue of $326.60 million for the quarter, compared to analysts’ expectations of $325.26 million. During the same period in the previous year, the firm earned $1.69 EPS. The firm’s revenue was up 13.7% compared to the same quarter last year. analysts anticipate that FactSet Research Systems will post 8.18 earnings per share for the current year.
In other news, VP Matthew J. Mcnulty sold 1,049 shares of the company’s stock in a transaction that occurred on Monday, October 2nd. The stock was sold at an average price of $181.00, for a total transaction of $189,869.00. Following the sale, the vice president now directly owns 2,499 shares of the company’s stock, valued at approximately $452,319. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Frederick Philip Snow sold 7,334 shares of the company’s stock in a transaction that occurred on Monday, October 2nd. The stock was sold at an average price of $181.24, for a total value of $1,329,214.16. Following the sale, the chief executive officer now directly owns 11,262 shares in the company, valued at $2,041,124.88. The disclosure for this sale can be found here. Insiders have sold a total of 17,841 shares of company stock worth $3,224,739 over the last ninety days. Insiders own 2.70% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in the stock. Institutional & Family Asset Management LLC raised its holdings in FactSet Research Systems by 1.5% during the 3rd quarter. Institutional & Family Asset Management LLC now owns 18,024 shares of the business services provider’s stock valued at $3,246,000 after buying an additional 259 shares during the period. Steward Partners Investment Advisory LLC purchased a new stake in FactSet Research Systems during the 3rd quarter valued at $513,000. Visionary Asset Management Inc. purchased a new stake in FactSet Research Systems during the 3rd quarter valued at $205,000. GSA Capital Partners LLP purchased a new stake in FactSet Research Systems during the 3rd quarter valued at $248,000. Finally, Fieldpoint Private Securities LLC purchased a new stake in FactSet Research Systems during the 3rd quarter valued at $195,000. Institutional investors own 93.73% of the company’s stock.
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About FactSet Research Systems
Factset Research Systems Inc is engaged in providing integrated financial information and big data analytical applications for the global investment community. The Company’s segments include the U.S., Europe and Asia Pacific. The U.S. segment services finance professionals, including financial institutions throughout the Americas.
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