Stock Analysis | FactSet Outlook - Technical Weakness and Mixed Analyst Signals

Market Snapshot

FactSet (FDS) is currently showing a weak technical outlook, with a 2.83 internal diagnostic score (0-10) and a clear bearish bias from key indicators. The stock has recently fallen by -2.78%, and analysts are divided, with a recent "Sell" rating from Wells Fargo.

News Highlights

• April 2025 - A report on the Top 6 trends shaping the capital markets sector highlighted evolving regulatory environments and technology advancements. FactSet, as a data and analytics provider, is likely affected by these macro-level shifts.
• June 2025 - The Capital Markets 2025 Midyear Outlook noted strong IPO activity in technology and financial services, which could benefit FactSet as more firms seek capital market tools for transparency and performance tracking.
• July 2025 - A report on the 3 Pressing Challenges in capital markets highlighted the need for infrastructure modernization. FactSet's role in market data and analytics becomes more critical as legacy systems are phased out.

Analyst Views & Fundamentals

Analysts remain divided in their views on FactSet. The simple average rating is 2.00, while the weighted historical performance rating stands at 2.59. Despite the bearish current price trend (-2.78%), the weighted ratings are slightly more optimistic.

Key fundamental values include:

• Revenue-MV ratio: -1.04
• Interest coverage ratio: 14.89%
• Fixed assets turnover ratio: 14.04
• Days sales outstanding: 39.95 days
• Current liabilities / Total liabilities: 22.06%

These indicators suggest solid operational efficiency, particularly in managing liabilities and covering interest, but mixed liquidity signals are present.

Money-Flow Trends

Money-flow patterns indicate outflows across all investor types:

• Small investors: 48.13% outflow ratio
• Medium investors: 48.32% outflow ratio
• Large investors: 49.39% outflow ratio
• Extra-large investors: 47.73% outflow ratio

The 7.83 internal diagnostic score (0-10) reflects relatively healthy large-cap flow patterns, but the negative overall trend signals caution for short-term traders.

Key Technical Signals

FactSet’s recent technical performance is mixed. The stock has seen the following key indicators:

• Marubozu White (8/19/2025): 7.22 internal diagnostic score (0-10) — indicating a potential bullish reversal pattern.
• MACD Golden Cross (8/20/2025): 2.03 internal diagnostic score (0-10) — a weak signal with historical negative returns.
• Ex-Dividend Date (8/29/2025): 1.00 internal diagnostic score (0-10) — historically associated with price declines.
• Dividend Record Date (8/29/2025): 1.00 internal diagnostic score (0-10) — also bearish in historical context.

Overall, the technical outlook is weak with 4 bearish signals and 1 bullish. Key insights suggest to avoid the stock due to dominant bearish momentum.

Conclusion

FactSet is in a challenging short-term position, with weak technical indicators, mixed analyst ratings, and a clear bearish price trend. While fundamentals show some resilience, the current environment appears unfavourable for new long positions. Consider waiting for a pull-back or a clearer signal of momentum reversal before committing capital.