Zacks Investment Research cut shares of FactSet Research Systems (NYSE:FDS) 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.”
Other analysts have also issued research reports about the company. Stifel Nicolaus reaffirmed a hold rating and set a $169.00 price objective (up previously from $163.00) on shares of FactSet Research Systems in a research report on Wednesday, September 27th. Northcoast Research lowered FactSet Research Systems from a buy rating to a neutral rating in a research report on Tuesday, December 5th. 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 research report on Monday, October 23rd. Credit Suisse Group reaffirmed an outperform rating and set a $200.00 price objective (up previously from $190.00) on shares of FactSet Research Systems in a research report on Wednesday, September 27th. Finally, Barclays increased their target price on FactSet Research Systems from $164.00 to $175.00 and gave the company an underweight rating in a report on Wednesday, September 27th. Three equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and two have given a buy rating to the stock. The stock currently has a consensus rating of Hold and an average price target of $180.17.
FactSet Research Systems (FDS) traded up $0.44 during trading on Thursday, hitting $202.46. The stock had a trading volume of 268,100 shares, compared to its average volume of 308,417. FactSet Research Systems has a 1-year low of $155.09 and a 1-year high of $206.66. The company has a quick ratio of 2.04, a current ratio of 2.04 and a debt-to-equity ratio of 1.03. The stock has a market capitalization of $7,990.00, a price-to-earnings ratio of 27.64, a P/E/G ratio of 2.29 and a beta of 0.97.
FactSet Research Systems (NYSE:FDS) last posted its quarterly earnings data on Tuesday, September 26th. The business services provider reported $1.90 earnings per share for the quarter, topping analysts’ consensus estimates 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 business had revenue of $326.60 million for the quarter, compared to analyst estimates of $325.26 million. During the same quarter in the prior year, the company earned $1.69 earnings per share. The company’s revenue was up 13.7% on a year-over-year basis. equities research analysts expect that FactSet Research Systems will post 8.18 EPS for the current year.
The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 19th. Shareholders of record on Thursday, November 30th will be paid a $0.56 dividend. The ex-dividend date of this dividend is Wednesday, November 29th. This represents a $2.24 annualized dividend and a yield of 1.11%. FactSet Research Systems’s dividend payout ratio is presently 34.41%.
In other FactSet Research Systems news, COO Mark J. Hale sold 9,458 shares of the company’s stock in a transaction on Friday, September 29th. The shares were sold at an average price of $180.34, for a total value of $1,705,655.72. Following the completion of the transaction, the chief operating officer now owns 11,314 shares in the company, valued at $2,040,366.76. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Matthew J. Mcnulty sold 1,049 shares of the company’s stock in a transaction on Monday, October 2nd. The shares were sold at an average price of $181.00, for a total transaction of $189,869.00. Following the completion of the transaction, the vice president now owns 2,499 shares of the company’s stock, valued at approximately $452,319. The disclosure for this sale can be found here. Insiders sold 17,841 shares of company stock valued at $3,224,739 in the last 90 days. 2.70% of the stock is currently owned by insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FDS. The Manufacturers Life Insurance Company boosted its stake in shares of FactSet Research Systems by 288.3% during the second quarter. The Manufacturers Life Insurance Company now owns 497,418 shares of the business services provider’s stock worth $82,660,000 after buying an additional 369,323 shares during the period. Fiduciary Management Inc. WI acquired a new stake in shares of FactSet Research Systems during the second quarter worth about $31,790,000. Junto Capital Management LP acquired a new stake in shares of FactSet Research Systems during the second quarter worth about $20,424,000. Fiera Capital Corp boosted its stake in shares of FactSet Research Systems by 34.0% during the second quarter. Fiera Capital Corp now owns 374,353 shares of the business services provider’s stock worth $62,210,000 after buying an additional 95,062 shares during the period. Finally, Parametric Portfolio Associates LLC boosted its stake in shares of FactSet Research Systems by 51.3% during the second quarter. Parametric Portfolio Associates LLC now owns 269,969 shares of the business services provider’s stock worth $44,863,000 after buying an additional 91,484 shares during the period. Institutional investors own 93.73% of the company’s stock.
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FactSet Research Systems Company Profile
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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