FactSet Research Systems Inc.

New York Stock Exchange
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Somewhat Bullish +35

FactSet Research Systems (NYSE:FDS) Shares Up 6.7% - Here's Why

AI-generated analysis

📈 FDS shares gained 6.7% in mid-day trading, trading as high as $221.47 against a previous close of $208.84.

💰 Q1 revenue reached $611.02 million, surpassing analyst estimates of $604.78 million by 1.0%.

📊 Earnings per share beat consensus expectations at $4.46 compared to the estimated $4.37.

💹 Net margin expanded to 24.48% with a return on equity of 30.25% for the quarter.

🚀 Revenue grew 7.1% year-over-year, demonstrating consistent business expansion.

💸 Quarterly dividend increased to $1.16 per share, representing an annualized yield of 2.0%.

📉 Goldman Sachs downgraded FDS from 'sell' to 'underweight' with a June 18th report.

📈 UBS maintained a 'buy' rating while lowering the price objective from $425.00 to $380.00.

🏦 Rothschild & Co downgraded the stock from 'neutral' to 'sell' with a $215.00 target.

📉 Royal Bank of Canada cut its price target from $243.00 to $240.00 in late May.

🔍 Consensus analyst rating is currently 'Reduce' with a mean price target of $267.69.

🏛️ Mattern Capital Management increased holdings by 48.8% in the fourth quarter.

📈 Heron Bay Capital lifted its position by 52.6% during the third quarter.

🆕 Element Squared LLC and Ticino Wealth established new positions valued at $2.3M and $1.9M respectively.

👥 Institutional ownership stands at 91.24%, indicating strong investor confidence.

💻 Core products include FactSet Workstation, APIs, and cloud-based solutions for financial analytics.

🌍 Company operates globally providing integrated data to portfolio managers and risk officers.

📅 Earnings results were posted on Tuesday, March 31st, with dividend paid June 18th.

📉 Trading volume was low at 116,147 shares, an 88% decline from the average daily volume.

📈 Analyst ratings are split with one Strong Buy, one Buy, eight Holds, and seven Sells.

Bullish Signals
  • FDS reported Q1 revenue of $611.02 million, beating analyst estimates of $604.78 million.
  • Earnings per share of $4.46 exceeded the consensus estimate of $4.37 by $0.09.
  • The company achieved a strong net margin of 24.48% and a return on equity of 30.25%.
  • Revenue grew 7.1% year-over-year, indicating solid business growth.
  • FactSet increased its quarterly dividend to $1.16 per share from the previous $1.10.
  • Mattern Capital Management raised its stake by 48.8% in the fourth quarter.
  • Heron Bay Capital increased its position by 52.6% during the third quarter.
  • Citigroup boosted its holdings by 24.7% in the third quarter.
  • New institutional investors Element Squared LLC and Ticino Wealth established significant new positions.
Risk Factors
  • Goldman Sachs downgraded FDS from 'sell' to 'underweight' in a June 18th report.
  • Rothschild & Co downgraded the stock from 'neutral' to 'sell' with a $215.00 price target.
  • Royal Bank of Canada lowered its price target from $243.00 to $240.00 in late May.
  • UBS Group reduced its price objective from $425.00 to $380.00 despite maintaining a 'buy' rating.
  • The consensus analyst rating is currently 'Reduce' with a mean price target of $267.69.
  • Trading volume was significantly low at 116,147 shares, an 88% decline from the average daily volume.
Full Analysis
FactSet Research Systems (NYSE:FDS) shares rose 6.7% in mid-day trading on Friday, reaching a high of $221.47 and closing near $222.89. Trading volume was significantly lower than the daily average, with only 116,147 shares changing hands compared to a typical 954,445. The stock previously closed at $208.84 before this mid-day surge. Analyst sentiment remains mixed following recent rating adjustments from major brokerages. Goldman Sachs downgraded the stock to 'underweight' in late June, while Rothschild & Co and Royal Bank of Canada also lowered their ratings or price targets around the same period. Conversely, UBS maintained a 'buy' rating despite lowering its price objective, and Wells Fargo increased its target price but kept an 'underweight' rating. Financial performance for the quarter ended March 31 showed strong results with revenue of $611.02 million, beating estimates by $6.24 million. The company reported earnings per share of $4.46 versus a consensus of $4.37, achieving a net margin of 24.48% and a return on equity of 30.25%. Revenue grew 7.1% year-over-year, and the firm recently increased its quarterly dividend to $1.16 per share. Institutional ownership remains robust at 91.24%, with several major funds increasing their stakes in recent quarters. Mattern Capital Management raised holdings by 48.8% in the fourth quarter, while Heron Bay Capital and Citigroup also boosted positions. New institutional entrants like Element Squared LLC and Ticino Wealth established fresh positions valued at approximately $2.3 million and $1.9 million respectively.