James C. Smith, a director at Gartner Inc. (NYSE:IT), recently sold a substantial portion of his holdings in the company. According to a recent SEC filing, Smith sold a total of 19,283 shares of common stock over several transactions on November 8, 11, and 12. These sales were executed at prices ranging from $540.22 to $555.54 per share, totaling approximately $12.47 million.
Following these transactions, Smith retains ownership of 527,092 shares in the company. The sales were conducted in multiple trades, with each transaction reflecting a weighted average price. The filing noted that Smith is willing to provide further details regarding the specific number of shares and prices involved in each transaction upon request.
Gartner, headquartered in Stamford, Connecticut, is a leading research and advisory company, providing insights and tools to help businesses make informed decisions.
In other recent news, Gartner Inc. reported a year-over-year revenue increase of 5%, reaching $1.5 billion in the third quarter of 2024. The company's research business, particularly its enterprise function leaders segment, showed strong performance with a 9% contract value growth. Gartner's conference revenue also experienced a significant surge of 30% due to a $300 million insurance payout because of conference cancellations.
The company has updated its 2024 guidance with positive projections for revenue and EBITDA, indicating potential growth in its consulting and tech vendor segments. However, the adjusted EPS of $2.50 was slightly down from $2.56 in the previous year. Despite this, Gartner maintains a robust balance sheet with $1.8 billion in cash and a gross debt to EBITDA ratio under 2x.
These are recent developments that reflect the company's financial health and strategic investments, indicating a strong position for continued success in the upcoming year. The company's full guidance for 2025 will be provided in February, with the fourth quarter playing a critical role in shaping revenue projections.
InvestingPro Insights
The recent stock sales by Gartner Inc. (NYSE:IT) director James C. Smith align with several key metrics and trends highlighted by InvestingPro. The company's stock has shown strong performance, with a 32.85% price total return over the past year and a 25.12% return over the last six months. This upward momentum has pushed Gartner's shares to trade near their 52-week high, with the current price at 98.71% of that peak.
InvestingPro data reveals that Gartner's market capitalization stands at $42.5 billion, reflecting its significant presence in the research and advisory sector. The company's financial health appears robust, with a revenue of $6.14 billion over the last twelve months as of Q3 2023, and a solid gross profit margin of 67.78%.
However, investors should note that Gartner is trading at elevated valuation multiples. The company's P/E ratio (adjusted) is 51.49, and its Price to Book ratio is a high 39.97. These figures suggest that the stock may be priced at a premium, which could explain why insiders like Smith might choose to realize gains.
InvestingPro Tips further support this analysis, indicating that Gartner is "Trading at a high earnings multiple" and "Trading at a high P/E ratio relative to near-term earnings growth." These insights, along with the tip that the "RSI suggests the stock is in overbought territory," provide context for Smith's decision to sell shares at current price levels.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for Gartner, providing a deeper understanding of the company's financial position and market outlook. These additional insights can be valuable for those looking to make informed decisions in light of recent insider transactions.
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