FactSet Research Systems Inc. (NYSE:FDS) CEO Frederick Philip Snow sold shares worth approximately $1.37 million, according to a recent SEC filing. The transaction took place on October 1, 2024, with the executive offloading 3,000 shares of common stock at an average price of $455.09.
The sale was executed under a prearranged Rule 10b5-1 trading plan, which allows company insiders to set up a trading schedule in advance to sell stocks at a predetermined time. This plan was adopted by Snow on September 27, 2023, with an effective date of January 2, 2024, indicating that the CEO had no direct control over the transaction's timing.
On the same date, Snow also exercised options to acquire another 3,000 shares of FactSet common stock, at a price of $164.90 per share, amounting to a total transaction value of $494,700. The options were part of a grant made on July 1, 2015, which vests over nine years, allowing for 11.11% exercisability on each anniversary of the grant date.
Following these transactions, Snow's direct holdings in the company have adjusted to 12,987.4699 shares of common stock. The reported activities provide a glimpse into the trading actions of FactSet's CEO and may be of interest to investors tracking insider behavior as a signal for their investment decisions.
FactSet Research Systems Inc., headquartered in Norwalk, Connecticut, specializes in computer programming, data processing, and other related services. The company is well-known for providing integrated financial information and analytical applications to the investment community.
In other recent news, FactSet Research Systems reported strong fourth-quarter results, with adjusted earnings per share of $3.74 and a 4.9% year-over-year revenue increase to $562.2 million. Despite these positive results, the company's fiscal 2025 earnings guidance of $16.80-$17.40 per share fell short of Wall Street's projection. Analysts from Goldman Sachs (NYSE:GS), BMO (TSX:BMO) Capital, and Wolfe Research have maintained a Sell, Market Perform, and Underperform rating on FactSet respectively, citing a modest forecast for fiscal year 2025 and competitive challenges. Evercore ISI initiated coverage on FactSet with an In Line rating and a price target of $470, projecting FactSet's organic Annual Subscription Value (ASV) growth to fall short of the company's target of 8-9%. Amid these recent developments, FactSet announced an upcoming investor day scheduled in New York City, with the company's fiscal year 2025 outlook described as "a tale of two halves," expecting a lift in the second half due to the execution of several large deals and contributions from new product launches.
InvestingPro Insights
To provide additional context to CEO Frederick Philip Snow'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 32.39 suggests that investors are willing to pay a premium for its shares, possibly due to its strong market position and growth prospects.
FactSet has demonstrated solid financial performance, with revenue reaching $2.20 billion in the last twelve months as of Q4 2024, representing a growth of 5.64%. The company's profitability is also noteworthy, with a gross profit margin of 54.07% and an operating income margin of 32.05% for the same period.
An InvestingPro Tip highlights that FactSet has raised its dividend for 25 consecutive years, which may be particularly relevant to investors interested in the company's long-term shareholder value creation. This consistent dividend growth aligns with the CEO's recent stock transactions, potentially signaling confidence in the company's financial stability and future prospects.
Another InvestingPro Tip notes that FactSet has maintained a high return over the last decade, which could explain the premium valuation and investor interest in the stock. This track record of performance may provide context for why the CEO's trading activities are closely watched by market participants.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for FactSet, providing a deeper understanding of the company's financial health and market position.
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