Norwalk's FactSet Hits 52-Week Low Despite Strong Earnings

FactSet Research Systems, the Norwalk-based financial data provider, hit a new 52-week low Tuesday as shares dropped to $201.50 during midday trading before recovering slightly to close at $203.07.

The decline comes despite the company’s strong fourth-quarter performance announced December 18th, when FactSet reported earnings of $4.51 per share, beating analyst expectations of $4.36. Revenue reached $607.62 million for the quarter, up 6.8% year-over-year and above the consensus estimate of $599.69 million.

Wall Street analysts remain divided on the Fairfield County company’s prospects. Goldman Sachs cut its price target from $282 to $253 and maintained a sell rating December 19th. Jefferies reaffirmed a hold rating with a $305 price target the same day, while Morgan Stanley set a $307 target with an equal weight rating December 17th.

The mixed analyst sentiment reflects broader uncertainty about FactSet’s position in the competitive financial data market. Of the 16 analysts covering the stock, five have assigned sell ratings, nine recommend holding, and only two rate it a buy, according to MarketBeat data. The average price target of $308.83 suggests analysts see significant upside from current levels.

FactSet’s fundamentals remain solid. The company posted a net margin of 25.40% and return on equity of 30.49% in its most recent quarter. Management provided guidance for fiscal 2026 earnings between $16.90 and $17.60 per share, with analysts expecting $17.21 for the current fiscal year.

The company announced a quarterly dividend of $1.10 per share payable March 19th to shareholders of record February 27th. The $4.40 annual dividend represents a 2.2% yield at current prices and a payout ratio of 27.99%.

FactSet’s board also approved a $600 million share buyback program December 18th, allowing the company to repurchase up to 5.4% of outstanding shares. Such programs typically signal management confidence that shares are undervalued.

Recent insider activity shows mixed signals. Director Malcolm Frank sold 2,572 shares January 12th at $295.70 per share, reducing his stake by 74.53% to 879 shares. Director Laurie Siegel similarly sold 2,572 shares January 8th at $296.25, cutting her holdings by 71.27%.

Institutional investors continue adjusting positions in the Norwalk company. Running Oak Capital increased its stake by 14% in the third quarter to 41,335 shares worth $11.8 million. New positions were established by Nuance Investments ($2.7 million), Financial Strategies Group ($7.9 million), and Investment House ($2.9 million).

Founded in 1978, FactSet operates from its Norwalk headquarters as a global provider of integrated financial data and analytics. The company serves portfolio managers, research analysts, investment bankers, and risk officers through its flagship FactSet Workstation platform, which aggregates content from thousands of sources.

The stock’s decline to 52-week lows reflects broader market pressures on financial technology companies, even as FactSet maintains its position as a key player in the $30 billion financial data industry. With trading volume of 1.27 million shares Tuesday - well above average - investors appear to be reassessing the company’s valuation amid concerns about growth prospects in an increasingly competitive market.

FactSet competes with Bloomberg LP and Refinitiv in providing mission-critical data to Wall Street firms, many of which maintain significant operations in Fairfield County’s financial corridor.