Gartner Insider Trades Send A Signal

Making a noteworthy insider sell on September 12, James C Smith, Board Member at Gartner IT, is reported in the latest SEC filing.

What Happened: Smith's recent move involves selling 2,128 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 $1,064,319.

The latest market snapshot at Friday morning reveals Gartner shares down by 0.0%, trading at $505.67.

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. The Company operates through three business segments, namely Research, Conferences and Consulting. The company generates majority of the revenue from Research segment.

Gartner: Delving into Financials

Revenue Growth: Gartner's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 6.11%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Exploring Profitability:

• Gross Margin: With a high gross margin of 67.82%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Gartner's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.95.

Debt Management: Gartner's debt-to-equity ratio stands notably higher than the industry average, reaching 4.53. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 48.11, Gartner's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 6.59, Gartner's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 29.5, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Uncovering the Importance of Insider Activity

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates 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.