FactSet Was Last Quarter’s Worst S&P 500 Stock. Its Chief Legal Officer Bought Shares.

FactSet Chief Legal Officer Christopher McLoughlin bought 334.62 shares of company stock on Sept. 23 for around $100,000. (Dreamstime)

Key Points

• FactSet Research Systems was the worst-performing S&P 500 stock in the third quarter, falling 36% in that period.
• Chief Legal Officer Christopher McLoughlin purchased 334.62 shares of FactSet stock for approximately $100,000 on September 23.
• FactSet’s stock has declined 41% this year, with a 2.1% drop since McLoughlin’s recent share purchase.

FactSet Research Systems was the worst-performing stock in the S&P 500 index during the third quarter, but at least one executive at the financial data provider is upbeat about its outlook.

Chief Legal Officer Christopher McLoughlin snapped up 334.62 shares of common stock on Sept. 23 for roughly $100,000, according to a securities filing with the Securities and Exchange Commission. The number includes fractional shares.

McLoughlin bought 334.62 shares at an average price of $296.18 each, then purchased an additional three shares for $297.66 apiece. The transactions brought the number of shares owned directly to 3,445.62, which were valued at around $973,180 as of Friday’s close.

Since the day of his purchase, the stock has fallen 2.1%, based on Friday’s closing price of $282.44. Shares are down 41% this year.

FactSet said it is company policy to not provide comment on corporate insider regulatory filings.

FactSet sank 36% in the third quarter alone, making it the worst-performing stock in the benchmark S&P 500 index. Many of the losses came after the company reported lower-than-expected earnings at the start of September, overshadowing revenue that was slightly higher than anticipated. FactSet also issued a forecast for adjusted earnings for the fiscal year that came in well below Wall Street’s forecasts.

On a call to discuss the results, management said the company was taking a conservative approach to its financial guidance to reflect “longer sales cycles and more rigorous client approval processes,” rather than reduced demand or a lack of confidence in FactSet’s competitive positioning.

McLoughlin, a 20-year veteran of the legal industry and former general counsel at S&P Global, was appointed executive vice president, chief legal officer in December. In his current role, McLoughlin oversees FactSet’s global legal affairs and reports to CEO Sanoke Viswanathan.

Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com