The Illinois Municipal Retirement Fund has significantly reduced its investment in FactSet Research Systems Inc. (NYSE: FDS), cutting its stake by 67.9% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the fund now holds 5,549 shares of the business services provider after selling 11,755 shares in the quarter, valued at approximately $1,590,000.
This move comes as multiple institutional investors have also adjusted their positions in FactSet. First Horizon Corp acquired a new stake in the company worth $25,000, while Winnow Wealth LLC purchased shares valued at around $28,000. Additionally, Covestor Ltd increased its holdings by 53.4%, now owning 112 shares valued at $33,000. Cullen Frost Bankers Inc. made headlines with a staggering 4,300.0% increase, bringing its total to 88 shares worth $39,000.
In a notable trend, Annis Gardner Whiting Capital Advisors LLC enhanced its position in FactSet by 178.0%, now owning 139 shares valued at $40,000. Collectively, institutional investors and hedge funds currently hold 91.24% of the company’s stock.
Insider Transactions and Recent Performance
Recent transactions by company insiders have also drawn attention. On January 8, 2024, Laurie Siegel, a director at FactSet, sold 2,572 shares at an average price of $296.25, totaling $761,955. Following this transaction, Siegel retained 1,037 shares valued at approximately $307,211.25, representing a 71.27% decrease in her position.
Another director, Malcolm Frank, sold the same number of shares on January 12, 2024, for a total of $760,540.40. After this sale, Frank holds 879 shares valued at around $259,920.30, marking a 74.53% reduction in his stake. Company insiders currently own 1.20% of FactSet’s stock.
FactSet recently reported its quarterly earnings, showing an earnings per share (EPS) of $4.51, surpassing analysts’ consensus estimates of $4.36 by $0.15. The company generated $607.62 million in revenue during the quarter, exceeding the expected $599.69 million. The firm’s net margin stood at 25.40%, with a return on equity of 30.49%. This performance marks a 6.8% increase in revenue compared to the same period last year.
Future Outlook and Shareholder Returns
Looking ahead, FactSet has set its fiscal year 2026 guidance at an EPS range of $16.900 to $17.600. Analysts predict the company will achieve an EPS of $17.21 for the current fiscal year.
On December 18, 2023, the board of directors initiated a $600 million share repurchase plan, which allows the company to buy back up to 5.4% of its outstanding shares. This decision typically indicates that the board views the stock as undervalued.
Additionally, FactSet declared a quarterly dividend of $1.10 per share, scheduled for payment on March 19, 2024. Shareholders of record on February 27, 2024, will benefit from this dividend, which reflects an annualized total of $4.40 and a yield of 2.3%. The company currently maintains a dividend payout ratio of 27.99%.
In terms of analyst ratings, research firms have varied assessments of FactSet’s stock. Weiss Ratings maintained a “sell (D+)” rating, while Wolfe Research restated an “underperform” rating with a target price of $290.00. Meanwhile, Bank of America initiated coverage with an “underperform” rating and a target price of $195.00.
Overall, the consensus rating for FactSet remains “Reduce,” with a target price averaging $298.54.
FactSet Research Systems Inc., established in 1978 and based in Norwalk, Connecticut, provides integrated financial data and analytics services to the investment community, delivering crucial insights to portfolio managers, research analysts, and investment bankers.
