Insider Unloading: Craig Safian Sells $3.48M Worth Of Gartner Shares

Revealing a significant insider sell on November 13, Craig Safian, EVP & CFO at Gartner IT, as per the latest SEC filing.

What Happened: Safian opted to sell 6,335 shares of Gartner, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The transaction's total worth stands at $3,479,768.

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.

Understanding the Numbers: Gartner's Finances

Positive Revenue Trend: Examining Gartner's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.36% as of 30 September, 2024, showcasing a substantial increase in 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.

Exploring Profitability:

• Gross Margin: The company sets a benchmark with a high gross margin of 67.98%, reflecting superior cost management and profitability compared to its 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 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.

Financial Valuation:

• 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: The current P/S ratio of 7.07 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 of 26.02 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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The Relevance of Insider Transactions

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

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.

Deciphering Transaction Codes in Insider Filings

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.

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