Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A substantial insider activity was disclosed on May 6, as Skoko, EVP at FactSet Research Systems (NYSE:FDS), reported the exercise of a large sell of company stock options.
What Happened: Skoko, EVP at FactSet Research Systems, made a strategic move by exercising stock options for 4,106 shares of FDS as detailed in a Form 4 filing on Monday with the U.S. Securities and Exchange Commission. The transaction value amounted to $1,165,282.
The latest update on Tuesday morning shows FactSet Research Systems shares down by 0.0%, trading at $436.08. At this price, Skoko's 4,106 shares are worth $1,165,282.
About FactSet Research Systems 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: A Financial Overview Revenue Growth: FactSet Research Systems displayed positive results in 3 months. As of 29 February, 2024, the company achieved a solid revenue growth rate of approximately 5.99%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Insights into Profitability:
- Gross Margin: The company shows a low gross margin of 53.27%, suggesting potential challenges in cost control and profitability compared to its peers.
- 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 3.7.
Exploring Valuation Metrics Landscape:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 34.5 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: With a P/S ratio of 7.85 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 21.82, the company's market valuation exceeds industry averages.
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Why Insider Activity Matters in Finance Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
Transaction Codes To Focus On Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes 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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