At FactSet Research Systems, Robert J Robie Chooses To Exercise Options, Resulting In $698K

A large exercise of company stock options by Robert J Robie, EVP at FactSet Research Systems FDS was disclosed in a new SEC filing on May 6, as part of an insider exercise.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday revealed that Robie, EVP at FactSet Research Systems in the Financials sector, exercised stock options for 3,466 shares of FDS stock. The exercise price of the options was $234.63 per share.

Currently, FactSet Research Systems shares are trading down 0.0%, priced at $436.08 during Tuesday's morning. This values Robie's 3,466 shares at $698,230.

All You Need to Know 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's remarkable performance in 3 months is evident. As of 29 February, 2024, the company achieved an impressive revenue growth rate of 5.99%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Holistic Profitability Examination:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 53.27%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): FactSet Research Systems's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 3.7.

Debt Management: FactSet Research Systems's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.95, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 34.5 is lower than the industry average, implying a discounted valuation for FactSet Research Systems's stock.

• 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): FactSet Research Systems's EV/EBITDA ratio, surpassing industry averages at 21.82, positions it with an above-average valuation in the market.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Delving Into the Significance of Insider Transactions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

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.

A Closer Look at Important Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously 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 indicates 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.