In a recent transaction, Christopher R. Ellis, EVP of Initiatives & Partnerships at FactSet Research Systems Inc. (NYSE:FDS), sold a total of 13,952 shares of the company's common stock. The sale was executed at a price of $456.15 per share, resulting in a total value of approximately $6,364,204. This move by a high-ranking executive at FactSet has caught the attention of investors and market watchers alike.
On the same day, Ellis also acquired shares through exercising options, purchasing 7,577 shares at $165.37 each and 6,375 shares at $175.20 each, totaling an investment of $2,369,908. The transactions, which took place on September 26, 2024, were disclosed in a Form 4 filing with the Securities and Exchange Commission.
The sales and acquisitions by Ellis represent significant activity by an executive within the company. The options exercised by Ellis were part of compensation packages granted in previous years, with vesting schedules that were outlined in the footnotes of the disclosure. Specifically, the options exercised from the grant on October 16, 2015, vested 40% on the second anniversary and then 20% annually over the following three years. The options from the November 2, 2015 grant vested 20% annually and became fully vested after five years.
After these transactions, Ellis's direct holdings in FactSet Research Systems have been adjusted to 23,514.6867 shares of common stock, not including an additional 450 shares indirectly owned by his spouse.
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 traded on the New York Stock Exchange under the ticker symbol FDS.
In other recent news, FactSet Research Systems Inc. has been the subject of several analyst reports following its strong fourth-quarter results. The company reported an adjusted earnings per share of $3.74, surpassing consensus forecasts, and a revenue increase of 4.9% year over year to $562.2 million, exceeding expectations. Despite these robust results, FactSet's fiscal 2025 earnings guidance of $16.80-$17.40 per share fell short of Wall Street's projection.
Stifel raised FactSet's stock price target from $451.00 to $469.00, maintaining a Hold rating, due to expectations of slightly better revenue growth. RBC Capital Markets and Wells Fargo also raised their price targets for FactSet to $503.00, citing potential improvements in the second half of the year. However, Goldman Sachs maintained a Sell rating on FactSet, citing a modest forecast for fiscal year 2025 and competitive challenges.
These recent developments reflect the company's performance and market expectations. However, FactSet has indicated that it does not plan to update its forward-looking statements before the release of its first-quarter earnings for fiscal year 2025. The company also announced an upcoming investor day scheduled in New York City.
InvestingPro Insights
To provide additional context to Christopher R. Ellis'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, possibly due to its strong market position and growth prospects.
One of the most notable InvestingPro Tips is that FactSet has raised its dividend for 25 consecutive years, demonstrating a consistent commitment to returning value to shareholders. This aligns with the company's financial stability and could be attractive to investors seeking reliable income streams. The current dividend yield is 0.91%, with a dividend growth rate of 6.12% over the last twelve months.
FactSet's revenue for the last twelve months reached $2.2 billion, with a revenue growth of 5.64%. The company's profitability is robust, with a gross profit margin of 54.07% and an operating income margin of 32.05%. These figures indicate FactSet's ability to maintain healthy profit levels while growing its top line.
It's worth noting that FactSet is trading at a high Price / Book multiple of 9.12, which could suggest that the market values the company's intangible assets and future growth potential significantly. This high valuation multiple aligns with another InvestingPro Tip indicating that FactSet is trading at a high earnings multiple relative to its near-term earnings growth.
For investors interested in a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide deeper insights into FactSet's financial health and market position.
The recent insider transaction by Christopher R. Ellis, when viewed alongside these financial metrics, offers a more nuanced picture of FactSet's current standing. While the stock sale might raise questions, the company's consistent dividend growth and strong profitability metrics suggest a solid foundation for long-term performance.
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