Craig Safian Executes Sell Order: Offloads $3.91M In Gartner Stock

Craig Safian, EVP & CFO at Gartner IT, executed a substantial insider sell on December 14, according to an SEC filing.

What Happened: Safian's recent move involves selling 8,424 shares of Gartner. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $3,909,875.

As of Friday morning, Gartner shares are down by 0.15%, currently priced at $453.31.

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.

Gartner's Financial Performance

Revenue Growth: Gartner's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 5.78%. This indicates a substantial 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.

Navigating Financial Profits:

• 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 is notably higher than the industry average. With a ratio of 5.28, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Overview:

• Price to Earnings (P/E) Ratio: Gartner's current Price to Earnings (P/E) ratio of 39.04 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 6.23 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 25.21, the company's market valuation exceeds industry averages.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Why Insider Transactions Are Key in Investment Decisions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Essential Transaction Codes Unveiled

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals 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.