Monthly Stock Analysis: FactSet Research Systems Inc. (FDS)

Publication Date: December 13, 2025

Company Overview

FactSet Research Systems Inc. (NYSE: FDS), headquartered in Norwalk, Connecticut, is a prominent player in the Financial Data and Stock Exchanges industry within the Financial Services sector. Established in 1978, FactSet has developed a robust financial digital platform that offers an extensive range of services to the investment community. The firm primarily focuses on providing data, analytical applications, workstations, and portfolio analytics, which support various workflows essential for data management, performance tracking, risk assessment, and financial reporting.

Business Model & Market Position

FactSet operates under a subscription-based model, which allows it to offer customizable desktop and mobile platforms, real-time data feeds, and cloud-based solutions to a diverse array of investment professionals, including asset managers, private equity firms, and wealth managers. This adaptability has helped the company maintain a strong reputation and a loyal client base despite the competitive pressures in the financial services industry.

With a total revenue of approximately $2.32 billion, FactSet demonstrates solid operational performance. However, recent shifts in market dynamics and repositioning concerning its competitors have raised questions about its growth trajectory moving forward.

52-Week Price Performance Analysis

52-Week Price Performance Chart

Analyzing FactSet's 52-week price performance, it's evident that the stock has encountered considerable volatility, marked by a 52-week high of $496.90 and a low of $250.50. As of the latest trading day, the share price stands at $292.91, reflecting a substantial decline of approximately 39.32% from its peak.

Technical Insights

1. Price Trends: The price chart indicates a predominantly bearish trend characterized by lower highs and lower lows. This trend is underscored by a consistently downward-sloping trendline, illustrating ongoing selling pressure.

2. Support and Resistance Levels: Current support is noted around the $292 level, where the stock has shown signs of consolidation. In contrast, resistance is strongly tested at the $500 mark, which was not maintained during previous attempts.

3. Moving Averages: The stock is trading above its 50-day moving average of $278.11, hinting at a short-term bullish movement. However, the broader trend remains bearish, as the shorter-term averages sit below longer-term trends, suggesting ongoing downward pressure.

4. Momentum: The price momentum appears weak, indicated by the lack of reversal patterns like double bottoms or head and shoulders, which would indicate a potential turnaround. Investors are advised to watch for confirmation of a trend reversal and increased trading volumes before making any major decisions.

Financial Performance and Metrics

FactSet's financial performance continues to show strength, despite recent stock price fluctuations:

• Total Revenue: Approximately $2.32 billion, indicating a solid revenue stream from its diverse offerings.

• EBITDA: Around $906 million, reflecting effective operational cost management and substantial earnings.

• Shares Outstanding: FactSet has 37,419,936 total shares outstanding, with 2,743,525 shares sold short, representing 8.37% of the total float. The short interest suggests that while some investors are bearish, a significant majority holds a belief in the stock's inherent value.

• Current Price: Trading at $292.91, with projected target prices indicating significant upside potential: a high target of $430.00, a mean target of $333.19, and a median target at $316.50.

Recent News and Developments

Several developments have impacted FactSet's stock dynamics recently:

1. Analyst Rating Changes: On December 8, 2025, Wells Fargo reduced its price target for FactSet from $355.00 to $260.00, maintaining an "underweight" rating. This revision raises concerns regarding FactSet's competitiveness within the financial sector. (Source)

2. Stock Performance: As of December 13, 2025, FactSet's shares have shown underperformance with a slight increase of 0.32% from the previous close. Over the last year, the stock has declined by 2.8%, significantly lagging behind the S&P 500 Financials Sector SPDR, which gained 19.8% in the same timeframe. (Source)

3. Strategic Initiatives: FactSet has entered a strategic partnership with Arcesium aimed at creating a unified investment management ecosystem. This collaboration intends to improve operational efficiencies across various asset classes, representing a positive movement towards innovation in their offerings. (Source)

Market Sentiment and Analyst Recommendations

Current market sentiment surrounding FactSet remains cautiously optimistic but primarily reflects a "hold" recommendation from analysts. With an average recommendation score of 3.33--on a scale where lower numbers indicate stronger buy signals--it's clear analysts are advocating for investors to remain vigilant and monitor market developments closely.

Analyst Consensus

• High Price Target: $430.00--This suggests potential recovery opportunities.
• Mean Price Target: $333.19--A more moderated expectation.
• Low Price Target: $260.00--Indicating potential risks and bearish stances.

Adding to this majority view, 16 analysts contributed to the consensus, providing a comprehensive analysis of the risks and opportunities within FactSet's trading environment.

Conclusion

FactSet Research Systems Inc. remains a significant entity in the financial services sector, showing strong financial fundamentals amidst market fluctuations. However, the bearish trends and competitive pressures necessitate a cautious approach for investors. With a hold recommendation prevailing, retail investors should watch for critical price movements near the $292 support level and consider market catalysts that could influence future growth.

As always, conducting thorough research and consulting with a financial advisor is essential before making any investment decisions in such a rapidly evolving market.