FactSet Research Systems (NYSE:FDS) has seen its price target cut from $282.00 to $253.00 by The Goldman Sachs Group. This adjustment, part of a research report released on September 22, 2023, reflects a cautious outlook on the business services provider’s stock, which currently carries a sell rating.
Other financial institutions have also weighed in on FactSet’s performance. UBS Group upgraded the company from a neutral to a buy rating but reduced its price target from $480.00 to $425.00. Wolfe Research maintained an underperform rating with a target price of $290.00, while Morgan Stanley set a price objective of $307.00 with an equal weight rating.
Analysts have varied opinions on FactSet Research Systems, which has received a range of ratings: one strong buy, one buy, ten holds, and five sells. According to data from MarketBeat, the average rating for the stock is “Reduce,” with an average target price of $314.75.
Recent Earnings and Dividend Announcements
FactSet recently announced its earnings results for the quarter ending December 18, 2023. The company reported earnings per share (EPS) of $4.51, surpassing analysts’ estimates of $4.36 by $0.15. Revenue for the quarter reached $607.62 million, exceeding expectations of $599.69 million. This performance marks a 6.8% increase in revenue compared to the same quarter last year.
Following these results, FactSet declared a quarterly dividend of $1.10, which was paid on December 18, 2023. Investors of record on November 28, 2023, received this dividend, equating to an annualized payout of $4.40 and a yield of 1.5%. The company’s payout ratio stands at 28.30%. Additionally, the board has approved a share buyback plan authorizing the repurchase of up to $600 million in outstanding shares, indicating confidence in the stock’s long-term value.
Insider Transactions and Institutional Involvement
Recent insider transactions reflect optimism among company executives. On September 23, 2023, insider Christopher Mcloughlin purchased 338 shares at an average cost of $296.19 each, totaling approximately $100,112.22. This acquisition increased his holdings to 3,446 shares valued at around $1,020,670.74. Similarly, Executive Vice President Helen L. Shan bought 370 shares on October 6, 2023, at an average price of $275.48, amounting to about $101,927.60.
Institutional investors have also been active, with several firms adjusting their stakes in FactSet. Cullen Frost Bankers Inc. notably increased its holdings by 4,300% in the second quarter, now owning 88 shares valued at approximately $39,000. Other institutions, including First Horizon Corp and Generali Investments Management Co LLC, have made new investments as well. Presently, institutional investors and hedge funds own 91.24% of the stock.
FactSet Research Systems, headquartered in Norwalk, Connecticut, provides integrated financial data and analytics for the investment community. Founded in 1978, the company’s products include the FactSet Workstation, APIs, and cloud-based solutions, serving portfolio managers, research analysts, and risk officers.
As FactSet navigates the evolving financial landscape, analysts will continue to monitor its performance and market positioning closely. The adjustments in price targets and ratings underscore the dynamic nature of investor sentiment and market conditions.
