Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed on June 25, Robin A. Abrams, Board Member at FactSet Research Systems (NYSE:FDS), executed a substantial insider sell as per the latest SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Abrams sold 2,375 shares of FactSet Research Systems. The total transaction amounted to $999,186.
As of Wednesday morning, FactSet Research Systems shares are down by 0.0%, currently priced at $419.2.
Discovering FactSet Research Systems: A Closer Look FactSet provides financial data and portfolio analytics to the Global investment community. The company aggregates data from third-party data suppliers, news sources, exchanges, brokerages, and contributors into its workstations. In addition, it provides essential portfolio analytics that companies use to monitor portfolios and address reporting requirements. Buy-side clients account for 82% of FactSet's annual subscription value. In 2015, the company acquired Portware, a provider of trade execution software. In 2017, it acquired BISAM, a risk management and performance measurement provider. In 2022, it completed its purchase of CUSIP Global Services.
FactSet Research Systems's Financial Performance Revenue Growth: FactSet Research Systems's remarkable performance in 3 months is evident. As of 31 May, 2024, the company achieved an impressive revenue growth rate of 1.24%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.
Navigating Financial Profits:
- Gross Margin: The company shows a low gross margin of 55.31%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
- Earnings per Share (EPS): FactSet Research Systems's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 4.15.
Analyzing Market Valuation:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 31.59 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: The current P/S ratio of 7.45 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 20.06, FactSet Research Systems presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
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The Relevance of Insider Transactions Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
Understanding Crucial Transaction Codes Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of FactSet Research Systems's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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