FactSet (NYSE:FDS) declared a quarterly dividend of $0.31 per share. The cash dividend will be paid on December 18, 2012 to holders of record of FactSet’s common stock on November 30, 2012. FactSet is a well-regarded provider of financial information and analytics.
The CEO sold 102,700 shares during early Oct while FactSet was at or near 52 week lows. The short position is growing and currently at 10.15%. The dividend pays in Dec and catches the 2012 tax-year by twelve days. Maybe someone stopped too soon with the financial analysis. Would it kill you to pay it in early Jan. Anyway
$3M of stock sold by Michael Frankenfield on September 27, 2012. $11.6M of stock sold by Charles Snyder on September 26, 2012. Is it any wonder the shorts are out in full force. FactSet needs to sell to someone to continue. They have not been spending money on capital. Insiders were selling. Bloomberg and others will eventually overwhelm them if they do not find a home somewhere safe.
Hence the shorts and a dividend that begs the question. What of the future.
George Gutowski writes from a caveat emptor perspective. Follow him at twitter@financialskepti.