FactSet Outlook - Technical Weakness and Mixed Analyst Signals

Market Snapshot

FactSet (FDS) is under pressure technically, with bearish signals outweighing bullish ones. The stock has fallen by 6.63% recently, and with only one strong technical indicator in the last five days, caution is warranted.

News Highlights

Recent news from early 2025 highlights shifting dynamics in the capital markets. On Feb 18, Morgan noted that favorable economic conditions could drive a rebound in M&A activity and corporate AI spending. Later in March, sifma.org emphasized the role of capital markets in driving economic growth and job creation. Capgemini and Datos Insights both flagged technology-driven transformations and the rise of AI in the sector. Meanwhile, Deloitte warned of a potential regulatory shift under the new administration, focusing on AI governance and central clearing requirements.

Analyst Views & Fundamentals

The analyst consensus is neutral to bearish on FactSet, with one "Sell" and two "Neutral" ratings in the last 20 days. The simple average rating is 2.67, while the performance-weighted score is 2.63, showing some consistency among analysts. Notably, Jason Haas of Wells Fargo, with an 83.3% historical accuracy, has issued a "Sell" rating recently.

Looking at key fundamental factors and their internal diagnostic scores (0-10), we see a mixed bag:

• Non-current assets / Total assets (%): 83.32% – Score: 2.01 (internal diagnostic score). Indicates high asset concentration in long-term holdings.
• Cash-UP: 0.595 – Score: 5.66. Reflects moderate cash flow momentum.
• Fixed assets turnover ratio: 14.04 – Score: 1.30. Indicates low asset utilization efficiency.
• Current liabilities / Total liabilities (%): 22.06% – Score: 1.35. Suggests manageable short-term obligations.

Money-Flow Trends

Despite the stock's recent underperformance, institutional money flows have shown a mixed picture. The fund-flow score is 7.73 (good), indicating positive inflow signals. However, the overall trend is negative across all investor sizes—small, medium, large, and extra-large. The block inflow ratio is 48.5%, suggesting that institutional investors are not significantly adding to their positions at this time.

Key Technical Signals

FactSet’s technical outlook is weak. The internal diagnostic score is 2.83, with bearish indicators outnumbering bullish ones 4 to 1. Recent technical signals from August 19 to September 12, 2025 include:

• Marubozu White (August 19) – Score: 7.22 (internal diagnostic score). A strong bullish candle, but not enough to overcome the bearish trend.
• MACD Golden Cross (August 20) – Score: 2.03. A traditionally bullish signal, but has underperformed historically in this context.
• Dividend Record Date and Ex-Dividend Date (August 29) – Both scored 1 (internal diagnostic score), indicating strong bearish sentiment around dividend-related events.

Key Insight: The technical signal imbalance (4 bearish vs. 1 bullish) highlights the stock’s poor momentum, with the risk of further decline.

Conclusion

FactSet is in a vulnerable technical position with limited positive momentum. While fundamentals are not catastrophic and institutional money is showing some signs of interest, the overall risk-reward balance remains skewed toward caution. With a technical score of 2.83 and a recent price drop of 6.63%, investors are advised to consider avoiding new positions and to watch for potential earnings or regulatory updates for more clarity.