FactSet Research Systems (FDS) Lowered to “Hold” at Zacks Investment Research

FactSet Research Systems (NYSE:FDS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.

According to Zacks, “FactSet reported impressive results for second-quarter fiscal 2018, wherein the company’s revenues and earnings topped the respective Zacks Consensus Estimate. Also, on a year-over-year basis, it registered growth on both the counts. FactSet’s sustained focus on bringing in new products across segments with an emphasis on financial services to expand the customer base has helped keep afloat amid the current macroeconomic challenges. Moreover, its strategy of growing through acquisitions is praiseworthy. Nonetheless, the company’s declining client-retention ratio remains a major a concern. 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. Notably, FactSet has underperformed the industry to which it belongs to in the last one year.”

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A number of other research analysts have also commented on the company. UBS raised their price target on FactSet Research Systems from $179.00 to $184.00 and gave the company a “sell” rating in a report on Wednesday, March 28th. Morgan Stanley lifted their target price on FactSet Research Systems from $186.00 to $192.00 and gave the stock an “equal weight” rating in a report on Wednesday, March 28th. Stifel Nicolaus lifted their target price on FactSet Research Systems from $169.00 to $184.00 and gave the stock a “hold” rating in a report on Wednesday, March 28th. Cantor Fitzgerald lifted their target price on FactSet Research Systems from $187.00 to $203.00 and gave the stock a “neutral” rating in a report on Wednesday, March 28th. Finally, Piper Jaffray reaffirmed a “hold” rating and set a $197.00 target price on shares of FactSet Research Systems in a report on Wednesday, March 28th. Three equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and one has issued a buy rating to the company’s stock. The company has an average rating of “Hold” and an average target price of $192.00.

Shares of FDS traded down $5.31 during trading hours on Monday, reaching $194.11. 151,300 shares of the company’s stock traded hands, compared to its average volume of 310,106. The firm has a market capitalization of $7,782.14, a price-to-earnings ratio of 26.47, a price-to-earnings-growth ratio of 2.13 and a beta of 0.95. The company has a debt-to-equity ratio of 0.94, a quick ratio of 2.64 and a current ratio of 2.53. FactSet Research Systems has a twelve month low of $155.09 and a twelve month high of $217.36.

FactSet Research Systems (NYSE:FDS) last issued its quarterly earnings results on Tuesday, March 27th. The business services provider reported $2.12 EPS for the quarter, beating analysts’ consensus estimates of $2.06 by $0.06. The company had revenue of $335.20 million for the quarter, compared to analyst estimates of $333.78 million. FactSet Research Systems had a return on equity of 54.00% and a net margin of 19.07%. The company’s quarterly revenue was up 13.9% compared to the same quarter last year. During the same period last year, the company earned $1.81 earnings per share. analysts forecast that FactSet Research Systems will post 8.47 EPS for the current fiscal year.

FactSet Research Systems announced that its Board of Directors has approved a share buyback program on Tuesday, March 27th that allows the company to buyback $300.00 million in shares. This buyback authorization allows the business services provider to purchase up to 3.8% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.

In other FactSet Research Systems news, VP Matthew J. Mcnulty sold 1,000 shares of the firm’s stock in a transaction dated Friday, January 12th. The stock was sold at an average price of $198.00, for a total transaction of $198,000.00. Following the completion of the sale, the vice president now directly owns 2,848 shares in the company, valued at approximately $563,904. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, COO Mark J. Hale sold 48,001 shares of the firm’s stock in a transaction dated Tuesday, January 23rd. The stock was sold at an average price of $198.43, for a total value of $9,524,838.43. Following the sale, the chief operating officer now owns 6,268 shares of the company’s stock, valued at $1,243,759.24. The disclosure for this sale can be found here. Insiders have sold a total of 52,606 shares of company stock valued at $10,418,001 over the last 90 days. Corporate insiders own 2.80% of the company’s stock.

Several institutional investors and hedge funds have recently bought and sold shares of the company. Cambridge Investment Research Advisors Inc. raised its stake in shares of FactSet Research Systems by 96.7% during the 4th quarter. Cambridge Investment Research Advisors Inc. now owns 5,435 shares of the business services provider’s stock worth $1,048,000 after purchasing an additional 2,672 shares in the last quarter. Xact Kapitalforvaltning AB purchased a new stake in shares of FactSet Research Systems during the 4th quarter worth about $569,000. Envestnet Asset Management Inc. raised its stake in shares of FactSet Research Systems by 9.7% during the 4th quarter. Envestnet Asset Management Inc. now owns 19,111 shares of the business services provider’s stock worth $3,683,000 after purchasing an additional 1,688 shares in the last quarter. We Are One Seven LLC purchased a new stake in shares of FactSet Research Systems during the 4th quarter worth about $374,000. Finally, Dumont & Blake Investment Advisors LLC purchased a new stake in shares of FactSet Research Systems during the 4th quarter worth about $208,000. 95.98% of the stock is owned by institutional investors.

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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.

Analyst Recommendations for FactSet Research Systems (NYSE:FDS)

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