FactSet Research Systems Inc. (FDS) Down 6.7% — Time to Free Up Some Cash?
FactSet Research Systems Inc. (FDS) was under clear pressure in the latest session, with the stock sliding 6.74% and losing $19.31 to close at $267.02 on the NYSE. The retreat marks a sharp single-day setback and extends an already deteriorating trend, leaving shares well off their recent levels and firmly in correction territory. Trading activity was relatively subdued, with about 403,900 shares changing hands, running at roughly half the 90-day average volume of 815,000. That lighter participation suggests the stock is losing momentum without a strong counterbid emerging, reinforcing the sense that buyers are stepping back as the price retreats.
From a longer-term standpoint, FactSet is giving up substantial ground. The stock now sits more than 40% below its 52-week high of $477.92 set on Jan. 31, 2025, underscoring how far it has fallen from investors’ prior optimism. This deep slide places FDS among the weaker performers in its corner of the financial and data services space. Sector peers such as KKR & Co. Inc. (KKR), Rocket Companies, Inc. (RKT), and Fidelity National Information Services, Inc. (FIS) have also seen bouts of volatility, but FactSet’s latest drop stands out for its size and its proximity to an already steep decline from the peak. Overall, the price action points to a stock that is losing ground and facing persistent headwinds, with sellers maintaining the upper hand for now.
Why FactSet Research Systems Inc. Price is Moving Lower
The recent drift lower in FactSet Research Systems Inc.’s share price appears driven less by a single headline and more by ongoing fundamental and sentiment headwinds. Despite steady revenue growth of 6.85% and a robust profit margin near 25%, the stock is still working through the aftermath of a sharply compressed 52‑week trading range, having fallen substantially from its prior high. That kind of prior downside leaves investors sensitive to any sign of slowing momentum or valuation risk. The modest weekly decline of about 0.8% in late January fits with this picture of persistent, grinding pressure rather than a sharp, news-driven move.
Several underlying factors are likely keeping buyers on the sidelines. The market is increasingly cautious toward financials and information‑services names with mature growth profiles, especially when earnings multiples remain elevated relative to peers such as KKR, Rocket Companies, and Fidelity National Information Services. The company’s shelf registration for up to $1.25 billion in common stock tied to an ESOP-related offering also adds a layer of overhang. Even if spread over time, the prospect of additional shares can weigh on sentiment, as investors anticipate dilution and question whether future returns will justify current pricing. Layer on an “Underweight” stance from Wells Fargo and a one‑year price target that implies only moderate upside from current levels, and the path of least resistance near term tilts lower. In this context, recent insider activity is being interpreted cautiously, and the stock’s weaker trading volume relative to its 90‑day average underscores the lack of strong dip‑buying interest.
What is the FactSet Research Systems Inc. Rating - Should I Sell?
Weiss Ratings assigns FDS a D rating. Current recommendation is Sell. Despite operating strengths, this D rating indicates an unfavorable overall risk/reward profile for shareholders at current levels. In other words, the company’s quality metrics have not translated into attractive, risk-adjusted returns, and caution is warranted for investors considering new capital or deciding whether to continue holding.
On the surface, FactSet’s fundamentals look impressive. The Excellent Growth Index and Excellent Efficiency Index are supported by 6.85% revenue growth, a healthy 25.39% profit margin and an elevated 28.83% return on equity. The Excellent Solvency Index also points to a sturdy balance sheet, while a forward P/E of 18.22 is not extreme for a profitable name in the Financials space. However, the Weiss Rating makes clear that these positives have not been enough to protect investors from disappointment.
The core problem lies in shareholder results and risk. The Very Weak Total Return Index and Weak Volatility Index show that, once price performance and downside swings are accounted for, investors have been poorly compensated. The Fair Dividend Index offers only limited support and does little to offset the drag from weak risk-adjusted returns. Put simply, strong operations have not translated into consistently rewarding stock performance.
Within its sector, FactSet’s D rating is in line with other lagging names such as KKR & Co. Inc. (KKR, D+) and Rocket Companies, Inc. (RKT, D), and Fidelity National Information Services, Inc. (FIS, D). For investors, this clustering in the lower tiers reinforces the message: even high-quality business metrics do not guarantee favorable outcomes when total return and volatility remain persistent weak spots.
About FactSet Research Systems Inc.
FactSet Research Systems Inc. (FDS) operates in the Financials sector as a data and analytics provider to investment professionals, but its offering remains heavily concentrated in traditional desktop-based workflows and legacy-style terminals. The company aggregates financial, market, and alternative datasets and delivers them through its core workstation, data feeds, and application programming interfaces used by asset managers, wealth managers, investment banks, and other institutional clients. Its platform supports portfolio analytics, risk modeling, research, and reporting, yet clients often face a complex, fragmented product structure that can require multiple modules and add-ons to approximate more integrated competitor solutions.
The firm’s portfolio includes tools for equity and fixed-income analysis, company screening, estimate aggregation, and corporate actions, as well as content management and reporting solutions for the front, middle, and back office. FactSet also maintains various reference databases intended to standardize identifiers and classifications across client systems. However, its ecosystem is relatively closed and can be slow to adapt compared with newer cloud-native, open-architecture platforms. The company’s dependence on entrenched workflows within large institutions, combined with a heavy emphasis on incremental enhancements rather than transformative technology shifts, leaves it exposed to competition from more flexible, lower-cost, and more specialized financial technology providers that are rapidly expanding in data science, AI-driven analytics, and customizable APIs.
Investor Outlook
With FactSet Research Systems Inc. (FDS) carrying a D (Sell) Weiss Rating, investors may want to exercise caution and closely monitor whether recent price action stabilizes or breaks below key prior lows. Watch for shifts in the broader Financials landscape, along with any changes in the company’s underlying risk profile that could improve—or further weaken—its overall risk/reward balance. See full rankings of all D-rated Financials stocks inside the Weiss Stock Screener.
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