FactSet Research Systems (NYSE:FDS) Shares Gap Up on Better-Than-Expected Earnings

FactSet Research Systems Inc. (NYSE:FDS)’s share price gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $204.55, but opened at $215.70. FactSet Research Systems shares last traded at $216.5780, with a volume of 621,413 shares traded.

The business services provider reported $4.46 earnings per share for the quarter, topping the consensus estimate of $4.37 by $0.09. The firm had revenue of $611.02 million for the quarter, compared to analyst estimates of $604.78 million. FactSet Research Systems had a return on equity of 30.25% and a net margin of 24.48%.The business’s quarterly revenue was up 7.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $4.28 EPS.

FactSet Research Systems Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, March 19th. Shareholders of record on Friday, February 27th were given a dividend of $1.10 per share. This represents a $4.40 annualized dividend and a yield of 2.0%. The ex-dividend date of this dividend was Friday, February 27th. FactSet Research Systems’s dividend payout ratio is 27.99%.

FactSet Research Systems announced that its Board of Directors has approved a share repurchase plan on Thursday, December 18th that permits the company to repurchase $600.00 million in shares. This repurchase authorization permits the business services provider to buy up to 5.4% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.

More FactSet Research Systems News

Here are the key news stories impacting FactSet Research Systems this week:

• Positive Sentiment: Q2 results: FactSet reported beat-sized non-GAAP results (EPS $4.46 vs consensus $4.37) and revenue of $611M (up 7.1% Y/Y), with management providing supporting materials (press release/slide deck). This earnings beat and steady organic ASV growth are the primary catalysts lifting the stock. Read More.
• Positive Sentiment: Valuation/rebound commentary: Several pieces argue FactSet’s valuation looks attractive after a multiyear share decline and that fundamentals could support a rebound, which likely boosted buyer interest. Read More.
• Neutral Sentiment: Analyst nuance: UBS cut its price target from $425 to $380 but kept a “buy” rating — signaling continued conviction in longer-term upside despite lowering near-term expectations. Read More.
• Neutral Sentiment: Earnings call / transcripts show mixed details (some GAAP vs non‑GAAP nuances and line-item commentary) that investors are parsing for forward guidance and contract trends. Conference call transcripts and slide deck provide deeper context. Read More.
• Negative Sentiment: Goldman Sachs lowered its price target to $217 and moved to a “sell” rating, signaling short-term downside risk and adding selling pressure among institutional holders. Read More.
• Negative Sentiment: Wells Fargo raised its PT slightly to $200 but retained an “underweight” stance, reinforcing cautious sentiment from some sell-side desks and limiting upside momentum. Read More.

Analyst Ratings Changes

A number of brokerages have recently issued reports on FDS. Jefferies Financial Group reaffirmed a “hold” rating and issued a $305.00 target price on shares of FactSet Research Systems in a report on Friday, December 19th. Huber Research upgraded FactSet Research Systems from a “strong sell” rating to a “strong-buy” rating in a report on Friday, December 19th. Royal Bank Of Canada lowered their price target on FactSet Research Systems from $320.00 to $243.00 and set a “sector perform” rating on the stock in a research report on Wednesday, March 18th. UBS Group dropped their price objective on FactSet Research Systems from $425.00 to $380.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, BMO Capital Markets cut their price objective on FactSet Research Systems from $311.00 to $305.00 and set a “market perform” rating for the company in a research report on Monday, December 22nd. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, nine have issued a Hold rating and six have assigned a Sell rating to the company. According to MarketBeat.com, FactSet Research Systems presently has a consensus rating of “Reduce” and a consensus price target of $279.85.

Insider Activity

In other news, Director Malcolm Frank sold 2,572 shares of the firm’s stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $295.70, for a total transaction of $760,540.40. Following the completion of the sale, the director owned 879 shares in the company, valued at approximately $259,920.30. This trade represents a 74.53% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Laurie Siegel sold 2,572 shares of FactSet Research Systems stock in a transaction dated Thursday, January 8th. The stock was sold at an average price of $296.25, for a total transaction of $761,955.00. Following the sale, the director directly owned 1,037 shares of the company’s stock, valued at $307,211.25. The trade was a 71.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On FactSet Research Systems

Several institutional investors and hedge funds have recently made changes to their positions in FDS. Running Oak Capital LLC grew its stake in shares of FactSet Research Systems by 14.0% in the third quarter. Running Oak Capital LLC now owns 41,335 shares of the business services provider’s stock valued at $11,842,000 after acquiring an additional 5,072 shares in the last quarter. Nuance Investments LLC acquired a new stake in FactSet Research Systems in the 3rd quarter worth about $2,733,000. Fiera Capital Corp boosted its holdings in FactSet Research Systems by 5.3% in the 3rd quarter. Fiera Capital Corp now owns 280,187 shares of the business services provider’s stock valued at $80,271,000 after purchasing an additional 14,133 shares during the period. Financial Strategies Group Inc. bought a new stake in FactSet Research Systems in the 3rd quarter valued at about $7,920,000. Finally, Mcdonald Capital Investors Inc. CA acquired a new position in shares of FactSet Research Systems during the 3rd quarter worth approximately $28,320,000. Institutional investors and hedge funds own 91.24% of the company’s stock.

FactSet Research Systems Price Performance

The company’s fifty day moving average price is $217.92 and its 200 day moving average price is $261.64. The company has a market capitalization of $8.34 billion, a P/E ratio of 14.46, a PEG ratio of 2.21 and a beta of 0.73. The company has a quick ratio of 1.54, a current ratio of 1.43 and a debt-to-equity ratio of 0.64.

FactSet Research Systems Company Profile

FactSet Research Systems Inc operates as a global provider of integrated financial data and analytics to the investment community. Founded in 1978 and headquartered in Norwalk, Connecticut, the company offers a unified platform that aggregates content from thousands of sources, delivering real-time and historical market data, company fundamentals, estimates, fixed-income information and proprietary analytics to portfolio managers, research analysts, investment bankers and risk officers.

The company’s core products include the FactSet Workstation, an application offering customizable screening, charting, portfolio analysis and news; APIs and data feeds for seamless integration into proprietary systems; and cloud-based solutions for thematic research and quantitative strategies.