FactSet Research Systems (NYSE:FDS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a 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.”
Several other research analysts have also commented on the stock. Credit Suisse Group reissued an “outperform” rating and issued a $205.00 price objective (up previously from $200.00) on shares of FactSet Research Systems in a research note on Monday, October 23rd. Goldman Sachs Group initiated coverage on shares of FactSet Research Systems in a report on Wednesday, November 8th. They issued a “neutral” rating and a $194.00 target price on the stock. Morgan Stanley raised their target price on shares of FactSet Research Systems from $166.00 to $171.00 and gave the company an “equal weight” rating in a report on Monday, October 23rd. Northcoast Research raised shares of FactSet Research Systems from a “neutral” rating to a “buy” rating and set a $195.00 target price on the stock in a report on Thursday, September 21st. Finally, Stifel Nicolaus reaffirmed a “hold” rating and issued a $169.00 target price (up previously from $163.00) on shares of FactSet Research Systems in a report on Wednesday, September 27th. Three equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have issued a buy rating to the stock. FactSet Research Systems has a consensus rating of “Hold” and a consensus target price of $180.73.
FactSet Research Systems (NYSE:FDS) opened at $202.02 on Thursday. The company has a quick ratio of 2.04, a current ratio of 2.04 and a debt-to-equity ratio of 1.03. FactSet Research Systems has a 12 month low of $155.09 and a 12 month high of $206.66. The company has a market cap of $7,979.95, a P/E ratio of 27.91, a PEG ratio of 2.32 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 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.89 by $0.01. FactSet Research Systems had a net margin of 21.15% and a return on equity of 55.76%. The business had revenue of $326.60 million during the quarter, compared to analyst estimates of $325.26 million. During the same quarter last year, the firm posted $1.69 earnings per share. The business’s revenue for the quarter was up 13.7% compared to the same quarter last year. sell-side analysts expect that FactSet Research Systems will post 8.18 EPS for the current year.
In other FactSet Research Systems news, VP Matthew J. Mcnulty sold 1,049 shares of the firm’s stock in a transaction that occurred 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 sale, the vice president now owns 2,499 shares of the company’s stock, valued at $452,319. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Frederick Philip Snow sold 7,334 shares of the firm’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 transaction of $1,329,214.16. Following the sale, the chief executive officer now directly owns 11,262 shares in the company, valued at approximately $2,041,124.88. The disclosure for this sale can be found here. In the last ninety days, insiders sold 17,841 shares of company stock worth $3,224,739. 2.70% of the stock is owned by corporate insiders.
Hedge funds have recently added to or reduced their stakes in the business. ETF Managers Group LLC acquired a new stake in FactSet Research Systems during the second quarter worth approximately $121,000. Mountain Capital Investment Advisors Inc acquired a new stake in FactSet Research Systems during the second quarter worth approximately $126,000. Turner Investments LLC acquired a new stake in FactSet Research Systems during the third quarter worth approximately $144,000. Fieldpoint Private Securities LLC acquired a new stake in FactSet Research Systems during the third quarter worth approximately $195,000. Finally, Visionary Asset Management Inc. acquired a new stake in FactSet Research Systems during the third quarter worth approximately $205,000. 93.73% of the stock is currently 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.
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