In a recent transaction, FactSet Research Systems Inc. (NYSE:FDS) Director Malcolm Frank sold a total of 2,838 shares of company stock, resulting in over $1.2 million in proceeds. The sales occurred on September 26, with prices ranging from $456.96 to $458.24 per share. The weighted average sale prices were $456.63 to $457.39 and $458.09 to $458.66 for different batches of shares, as detailed in footnotes provided with the transaction.
The transactions were part of a series of trades involving both the acquisition and disposal of FactSet shares. Alongside the sales, Frank also exercised options to acquire 2,838 shares of common stock at a price of $197.75 per share, which totaled $561,214. These options had been granted on January 12, 2018, and became fully vested on the third anniversary of the grant date.
After these transactions, the director's ownership in the company decreased, with a post-sale holding of 517 shares of FactSet's common stock. The sale of shares by a company director is often closely watched by investors as it can provide insights into an insider's view of the company's current valuation and future prospects.
FactSet Research Systems Inc., headquartered in Norwalk, Connecticut, is known for providing financial information and analytical software to the investment community. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol FDS.
In other recent news, FactSet Research Systems has reported impressive fourth-quarter results, with adjusted earnings per share of $3.74, surpassing expectations, and a 4.9% year-over-year revenue increase to $562.2 million. Despite these robust results, FactSet's fiscal 2025 earnings guidance of $16.80-$17.40 per share fell short of Wall Street's projection. Analysts from Goldman Sachs, BMO Capital, and Wolfe Research maintained a Sell, Market Perform, and Underperform rating on FactSet respectively, citing a modest forecast for fiscal year 2025 and competitive challenges. Stifel has raised FactSet's stock price target from $451.00 to $469.00, maintaining a Hold rating, while RBC Capital Markets raised the price target to $503, maintaining a Sector Perform rating. Wells Fargo also increased its price target to $503.00, maintaining an Equal Weight rating on FactSet. These are just some of the recent developments surrounding FactSet.
InvestingPro Insights
To provide additional context to Director Malcolm Frank's recent stock transactions, let's examine some key financial metrics and insights for FactSet Research Systems Inc. (NYSE:FDS).
According to InvestingPro data, FactSet's market capitalization stands at $17.33 billion, reflecting its significant presence in the financial information services sector. The company's P/E ratio of 32.58 suggests that investors are willing to pay a premium for FactSet's earnings, which aligns with the InvestingPro Tip indicating that the company is "Trading at a high earnings multiple."
FactSet's revenue for the last twelve months as of Q4 2023 was $2.2 billion, with a growth rate of 5.64%. This moderate growth is complemented by a strong gross profit margin of 54.07% and an operating income margin of 32.05%, demonstrating the company's ability to maintain profitability.
An InvestingPro Tip highlights that FactSet "Has raised its dividend for 25 consecutive years," which is a testament to the company's financial stability and commitment to shareholder returns. The current dividend yield stands at 0.91%, with a dividend growth rate of 6.12% over the last twelve months.
It's worth noting that while Director Frank has reduced his holdings, FactSet continues to show strong financial performance. The company's return on assets of 13.39% indicates efficient use of its assets to generate profits. Additionally, analysts predict that FactSet will remain profitable this year, as per another InvestingPro Tip.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for FactSet, which could provide further insights into the company's financial health and market position.
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