EVP Of Gartner Makes $309K Sale

Valentin Sribar, EVP at Gartner IT, reported an insider sell on December 13, according to a new SEC filing.

What Happened: Sribar's recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 675 shares of Gartner. The total transaction value is $309,865.

As of Thursday morning, Gartner shares are down by 0.93%, currently priced at $461.73.

Discovering Gartner: A Closer Look

Based in Stamford, Conn., Gartner provides independent research and analysis on information technology and other related technology industries. Its research is delivered to clients' desktops in the form of reports, briefings, and updates. Typical clients are chief information officers and other business executives who help plan companies' IT budgets. Gartner also provides consulting services and hosted nearly 80 IT conferences across the globe in 2007.

Understanding the Numbers: Gartner's Finances

Revenue Growth: Gartner displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 5.78%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company excels with a remarkable gross margin of 68.0%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Gartner's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 2.28.

Debt Management: Gartner's debt-to-equity ratio surpasses industry norms, standing at 5.28. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 40.07, Gartner's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The current P/S ratio of 6.39 is above industry norms, reflecting an elevated valuation for Gartner's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Gartner's EV/EBITDA ratio, surpassing industry averages at 25.84, positions it with an above-average valuation in the market.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Unmasking the Significance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Understanding Crucial Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Gartner's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.