FactSet Research Systems (FDS) declared a quarterly dividend of $0.31 per share. The cash dividend will be paid on Dec. 18, 2012, to holders of record of FactSet’s common stock on Nov. 30, 2012. FactSet is a well-regarded provider of financial information and analytics.
The CEO sold 102,700 shares during early October, while FactSet was at or near 52-week lows. The short position is growing and currently at 10.15%. The dividend pays in December and catches the 2012 tax year by 12 days. (Maybe someone stopped too soon with the financial analysis. Would it kill them to pay it in early January?)
$3 million worth of stock sold by Michael Frankenfield on Sept. 27, 2012. $11.6 million worth of stock sold by Charles Snyder on Sept. 26, 2012. Is it any wonder the shorts are out in full force? FactSet needs to sell to someone to continue. The company has not been spending money on capital. Insiders were selling. Bloomberg and others will eventually overwhelm it if it does not find a home somewhere safe.
Hence the shorts and a dividend that asks the question: What of the future?