Smart Decision: Christopher R Ellis Acquires FactSet Research Systems Stock Options

Christopher R Ellis, EVP at FactSet Research Systems FDS, reported acquisition of company stock options on November 4, according to a new SEC filing.

What Happened: In a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Ellis, EVP at FactSet Research Systems, acquired stock options for 2,254 shares of FDS. These options provide Ellis with the right to purchase the company's stock at $458.8 per share.

The Tuesday morning update indicates FactSet Research Systems shares up by 0.53%, currently priced at $464.28. At this value, Ellis's 2,254 shares are worth $12,351.

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 (including wealth and corporate 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.

Financial Insights: FactSet Research Systems

Revenue Growth: FactSet Research Systems displayed positive results in 3 months. As of 31 August, 2024, the company achieved a solid revenue growth rate of approximately 4.93%. 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.

Profitability Metrics:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 54.07%, indicating potential difficulties in maintaining 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 2.35.

Debt Management: FactSet Research Systems's debt-to-equity ratio surpasses industry norms, standing at 0.82. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 33.2, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 8.1 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 lower-than-industry-average EV/EBITDA ratio of 21.34, FactSet Research Systems presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Uncovering the Importance of Insider Activity

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Transaction Codes To Focus On

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.