Trade Report: Today: The Zacks Investment Research Downgrade FactSet Research Systems Inc. (FDS) to Sell

Today: The Zacks Investment Research Downgrade 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 issued 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.”

Several other research firms have also recently weighed in on FDS. Macquarie began coverage on shares of FactSet Research Systems in a research report on Thursday, August 25th. They set a “neutral” rating and a $180.00 price objective for the company. Barclays PLC upped their price objective on shares of FactSet Research Systems from $160.00 to $175.00 and gave the stock an “equal weight” rating in a research report on Tuesday, August 23rd. Bank of America Corp. set a $185.00 price objective on shares of FactSet Research Systems and gave the stock a “hold” rating in a research report on Thursday, September 15th. Cantor Fitzgerald reaffirmed a “hold” rating on shares of FactSet Research Systems in a research report on Friday, August 19th. Finally, Morgan Stanley set a $161.00 price objective on shares of FactSet Research Systems and gave the stock a “hold” rating in a research report on Wednesday, September 28th. Three investment analysts have rated the stock with a sell rating, ten have given a hold rating and one has issued a buy rating to the company. FactSet Research Systems currently has a consensus rating of “Hold” and an average target price of $169.67.

FactSet Research Systems (NYSE:FDS) traded up 0.27% during midday trading on Monday, reaching $160.85. 342,248 shares of the company’s stock traded hands. The stock has a 50-day moving average of $156.95 and a 200 day moving average of $163.97. The company has a market cap of $6.42 billion, a P/E ratio of 19.64 and a beta of 0.74. FactSet Research Systems has a 52-week low of $135.95 and a 52-week high of $183.17.

FactSet Research Systems (NYSE:FDS) last posted its quarterly earnings data on Tuesday, September 27th. The company reported $1.69 earnings per share 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 had revenue of $287.30 million for the quarter. During the same period last year, the company earned $1.48 earnings per share. The firm’s revenue for the quarter was up 9.7% compared to the same quarter last year. On average, analysts anticipate that FactSet Research Systems will post $7.03 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 20th. Stockholders of record on Wednesday, November 30th will be paid a $0.50 dividend. This represents a $2.00 annualized dividend and a dividend yield of 1.24%. The ex-dividend date of this dividend is Monday, November 28th. FactSet Research Systems’s dividend payout ratio is currently 24.30%.

In other FactSet Research Systems news, SVP Rachel Rebecca Stern sold 1,065 shares of the stock in a transaction that occurred on Monday, October 10th. The shares were sold at an average price of $158.79, for a total transaction of $169,111.35. Following the completion of the sale, the senior vice president now owns 978 shares of the company’s stock, valued at approximately $155,296.62. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Frederick Philip Snow sold 6,250 shares of the stock in a transaction that occurred on Wednesday, October 5th. The shares were sold at an average price of $158.22, for a total transaction of $988,875.00. Following the sale, the chief executive officer now directly 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 owned by insiders.

Hedge funds have recently added to or reduced their stakes in the stock. Arizona State Retirement System increased its stake in FactSet Research Systems by 5.6% in the first quarter. Arizona State Retirement System now owns 22,646 shares of the company’s stock worth $3,432,000 after buying an additional 1,200 shares in the last quarter. Royal Bank of Canada increased its stake in FactSet Research Systems by 4.7% in the first quarter. Royal Bank of Canada now owns 103,711 shares of the company’s stock worth $15,716,000 after buying an additional 4,627 shares in the last quarter. Ladenburg Thalmann Financial Services Inc. increased its stake in FactSet Research Systems by 5.3% in the first quarter. Ladenburg Thalmann Financial Services Inc. now owns 3,644 shares of the company’s stock worth $552,000 after buying an additional 185 shares in the last quarter. Stock Yards Bank & Trust Co. increased its stake in FactSet Research Systems by 0.5% in the second quarter. Stock Yards Bank & Trust Co. now owns 67,522 shares of the company’s stock worth $10,900,000 after buying an additional 305 shares in the last quarter. Finally, Cullinan Associates Inc. purchased a new stake in FactSet Research Systems during the second quarter worth $694,000. 94.75% of the stock is owned by institutional investors and hedge funds.

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 i
nformation to investment managers, investment banks and other financial services professionals.

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