Stock of the Day

July 11, 2022

FactSet Research Systems (FDS)

$433.86
+$2.38 (+0.6%)
Market Cap: $16.46B

About FactSet Research Systems

FactSet Research Systems Inc., a financial data company, provides integrated financial information and analytical applications to the investment community in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company delivers insight and information through the workflow solutions of research, analytics and trading, content and technology solutions, and wealth. It serves portfolio managers, investment banks, asset managers, wealth advisors, corporate clients, and other financial services entities. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.

FactSet Research Systems Bull Case

Here are some ways that investors could benefit from investing in FactSet Research Systems Inc.:

  • The current stock price is around $467.77, reflecting a recent increase, which may indicate positive market sentiment towards the company.
  • FactSet Research Systems has a strong institutional ownership, with 91.24% of its stock held by institutional investors and hedge funds, suggesting confidence in the company's long-term performance.
  • The company has shown resilience with a market capitalization of approximately $17.75 billion, indicating its significant presence in the business services sector.
  • FactSet Research Systems has a solid financial position, with a debt-to-equity ratio of 0.65, which indicates a balanced approach to leveraging debt for growth while maintaining financial stability.
  • Recent insider transactions, such as the sale by the chief accounting officer, may indicate strategic adjustments within the company, which could lead to future growth opportunities.

FactSet Research Systems Bear Case

Investors should be bearish about investing in FactSet Research Systems Inc. for these reasons:

  • The stock has experienced fluctuations, with a recent trading volume of 42,736 shares, which is significantly lower than its average volume, indicating potential volatility.
  • Despite recent gains, the company's price-to-earnings (P/E) ratio of 33.50 may suggest that the stock is overvalued compared to its earnings, which could deter value-focused investors.
  • Insider ownership is relatively low at 1.10%, which may raise concerns about alignment between management and shareholder interests.
  • Recent cuts in holdings by major investors, such as the Royal Bank of Canada reducing its stake by 12.2%, could signal a lack of confidence in the company's future performance.
  • The price-to-earnings-growth (PEG) ratio of 2.93 indicates that the stock may be priced high relative to its growth rate, which could be a red flag for growth investors.
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