Sell Alert: James C Smith Cashes Out $12.47M In Gartner Stock

Making a noteworthy insider sell on November 13, James C Smith, Board Member at Gartner IT, is reported in the latest SEC filing.

What Happened: After conducting a thorough analysis, Smith sold 22,735 shares of Gartner. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $12,469,611.

As of Thursday morning, Gartner shares are down by 0.0%, currently priced at $551.8.

About Gartner

Gartner Inc 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.

Financial Insights: Gartner

Revenue Growth: Over the 3 months period, Gartner showcased positive performance, achieving a revenue growth rate of 5.36% as of 30 September, 2024. This reflects 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.

Insights into Profitability:

• Gross Margin: The company excels with a remarkable gross margin of 67.98%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Gartner's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 5.36.

Debt Management: With a high debt-to-equity ratio of 2.73, Gartner faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 40.75 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 7.07 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): Gartner's EV/EBITDA ratio, surpassing industry averages at 26.02, positions it with an above-average valuation in the market.

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

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted 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.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Exploring Key Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes 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.

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