Gartner Inc (NYSE:IT) director James C. Smith has sold a series of shares in the company, according to recent filings with the Securities and Exchange Commission. The transactions, which took place on September 11th and 12th, totaled over $3.9 million.
Smith executed multiple trades over the two days, selling shares at prices ranging from $500.23 to $503.39. The sales were part of a planned trading activity, as detailed in the footnotes of the filing, which also stated that the prices reported were weighted average sale prices.
On September 11th, Smith sold 1,426 shares of Gartner stock at a price of $500.23 per share. The following day, he continued with several transactions: 1,431 shares were sold at a weighted average price of $500.66, another 1,192 shares at $501.42, 2,771 shares at $502.53, and finally, 1,052 shares at $503.39.
These sales significantly reduced Smith's holdings in the company, yet he remains a large shareholder with over half a million shares still under his direct ownership.
Investors often monitor insider transactions such as these for insights into executive confidence and company performance. Smith's recent sales activity might therefore be of interest to current and potential Gartner shareholders.
Gartner Inc specializes in management services and is known for delivering actionable, objective insight to executives and their teams. The company's shares are publicly traded on the New York Stock Exchange under the ticker symbol IT.
In other recent news, Gartner Inc.'s earnings and revenue results have shown a promising trend. The company's EBITDA for the second quarter reached $416 million, marking an 8% increase year-over-year, and adjusted earnings per share (EPS) grew by 13% to $3.22. Gartner also reported high-single-digit growth in contract value, surpassing expectations. The research segment, the company's most profitable, saw a 10% growth in contract value with enterprise function leaders.
BMO Capital Markets adjusted its stock price target for Gartner to $510, up from the previous target of $450, maintaining its Market Perform rating. This revision is attributed to Gartner's recent margin-driven earnings beat, driven by lower-than-anticipated selling, general, and administrative expenses, and a resurgence in new business.
In other company news, Gartner repurchased $340 million of its stock and updated its full-year guidance, projecting research revenue to be at least $5.105 billion. Despite some attrition in the Tech Vendor and GTS segments, Gartner plans to focus on sales force recruitment in the latter half of the year to reach year-end targets. These are among the recent developments that investors should take into account.
InvestingPro Insights
In the wake of the recent insider selling at Gartner Inc (NYSE:IT), investors might seek additional context through various financial metrics and analyst insights. According to InvestingPro data, Gartner's market capitalization stands at a robust $39.34 billion, reflecting the company's significant presence in the management services industry. Despite a moderate revenue growth of 5.47% over the last twelve months as of Q2 2024, the company's shares are trading near their 52-week high, with a price just shy of 100% of the peak, indicating strong market confidence.
With a price-to-earnings (P/E) ratio of 48.02 and an adjusted P/E ratio for the last twelve months of 47.05, Gartner is trading at a high earnings multiple. This suggests that investors are willing to pay a premium for its earnings potential, possibly due to the company's established reputation for providing actionable insights to executives. Additionally, Gartner's gross profit margin remains impressive at 67.78%, showcasing the company's ability to maintain profitability.
InvestingPro Tips highlight that Gartner operates with a moderate level of debt and has experienced a strong return over the last three months, with a 16.87% return in that period. These factors, combined with the company's profitability over the last twelve months and analysts' predictions of continued profitability this year, provide a nuanced picture that could explain the stock's high valuation multiples.
For investors seeking further analysis and a deeper dive into Gartner's financial health, InvestingPro offers additional tips on the company's performance and outlook. There are 15 more InvestingPro Tips available for Gartner Inc, which can be accessed for a comprehensive understanding of the stock's potential and risks.
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