FactSet Outlook - Bearish Signals and Mixed Analyst Ratings Weigh on FDS

Market Snapshot

Headline Takeaway: FactSet's (FDS) technical outlook is weak, with a technical score of 1.44, suggesting investors should be cautious and potentially avoid the stock.

News Highlights

Recent headlines point to a dynamic capital markets environment, though few directly mention FactSet:

• "Capital Markets Outlook 2025" (Feb 18, 2025) from Morgan highlights potential for M&A rebound and growing AI investment—positive for broader market sentiment but not directly impacting FDS.
• "Capital Market Trends 2025" (June 23, 2025) discusses industry shifts like AI adoption and regulatory changes—key themes for capital market firms like FactSet, though no specific guidance is given.
• "Top 10 Takeaways from SIFMA’s 2025 Capital Markets Fact Book" (August 26, 2025) offers data-rich insights on market size and trends—again, broad and not company-specific.

While these reports are bullish for the sector as a whole, none provide a clear catalyst for FactSet’s stock at this time.

Analyst Views & Fundamentals

Analysts are divided on FactSet. The simple average rating is 2.67 (on a scale where 1=Sell, 4=Buy), while the performance-weighted rating is much lower at 1.54, indicating a stronger bearish tilt when considering historical accuracy.

Rating consistency is low, with Wells Fargo issuing a “Sell” (historical winning rate 83.3%) while Rothschild & Co and Evercore ISI Group rated it “Neutral” (with poor historical performance). This dispersion reflects uncertainty.

FactSet’s price trend has fallen by 9.05% recently, aligning with the pessimistic analyst forecasts. The internal diagnostic scores (0-10) for key fundamentals are as follows:

• Operating cycle: 39.95 days (score 1)
• Days sales outstanding: 39.95 days (score 1)
• Current liabilities / Total liabilities (%): 22.06% (score 1)
• Non-current assets / Total assets (%): 83.32% (score 2)
• Fixed assets turnover ratio: 14.04x (score 2)
• Cash-UP: 59.53% (score 3)
• Current assets / Total assets (%): 16.68% (score 1)

These mixed signals suggest a firm with high asset concentration but weak working capital turnover, potentially limiting near-term growth momentum.

Money-Flow Trends

Despite the bearish technicals, fund flow data is mixed. The fund-flow score is 7.74 (good), indicating that large and extra-large investors are still showing some inflows:

• Small investors: 49.18% inflow ratio (negative trend)
• Medium investors: 49.23% inflow ratio (negative trend)
• Large investors: 50.13% inflow ratio (positive trend)
• Extra-large investors: 49.78% inflow ratio (negative trend)

Big-money flows are pulling in slightly, but retail and medium-sized investors are backing away. This divergence highlights uncertainty among market participants.

Key Technical Signals

FactSet is facing multiple biased bearish indicators with internal diagnostic scores (0-10):

• MACD Death Cross: score 1.00 — A strong bearish signal typically associated with downward momentum.
• Ex-Dividend Date: score 1.00 — Often triggers selling pressure as investors adjust positions before ex-dividend dates.
• Dividend Record Date: score 1.00 — Similar selling patterns observed historically.
• WR Oversold: score 2.75 — Suggests limited short-term upside despite a slight positive tilt.

Recent technical events include a MACD Death Cross on September 15 and repeated WR Oversold signals between September 10 and 16. These patterns reinforce a weaker trend, with four bearish signals versus none bullish.

Overall, FactSet’s chart looks weak, and the momentum is clearly bearish.

Conclusion

FactSet is under pressure from a combination of bearish technical signals, weak analyst consensus, and mixed fundamental indicators. While large investors are still showing slight inflows, retail and medium investors are pulling back. Consider avoiding FDS in the near term and wait for clearer signs of stabilization or a potential pullback before considering a position.