James C. Smith, a director at Gartner Inc. (NYSE:IT), has sold a significant portion of the company's stock, as detailed in a recent SEC filing. The transactions, executed on November 26, involved the sale of 5,000 shares of common stock, totaling approximately $2.62 million. The shares were sold at prices ranging from $522.58 to $527.32.
Following these transactions, Smith's direct ownership stands at 509,457 shares. The sales were carried out in multiple trades, with the weighted average prices reported for each transaction. These transactions reflect Smith's ongoing management of his investment in Gartner, a leading research and advisory company.
In other recent news, Gartner Inc. reported a 5% year-over-year increase in its revenue, reaching $1.5 billion in the third quarter of 2024. This positive financial performance was led by a 9% boost in the company's enterprise function leaders segment. Additionally, Gartner benefited from a $300 million insurance payout due to conference cancellations.
The company's outlook for 2024 includes optimistic projections for revenue and EBITDA, with an emphasis on growth in its consulting and tech vendor segments. However, the adjusted EPS of $2.50 was slightly down from the previous year.
A key point of interest from the earnings call was the company's strategy for growing its quota-bearing headcount, as mentioned by CEO Gene Hall. These recent developments suggest a strong position for Gartner in the upcoming year, with full guidance for 2025 expected to be provided in February.
InvestingPro Insights
As James C. Smith reduces his stake in Gartner Inc. (NYSE:IT), investors may find value in examining the company's current financial position and market performance. According to InvestingPro data, Gartner boasts a substantial market capitalization of $40.1 billion, reflecting its significant presence in the research and advisory sector.
The company's financial health appears robust, with revenue reaching $6.14 billion over the last twelve months as of Q3 2023, showing a growth of 5.37%. This steady revenue increase aligns with an InvestingPro Tip indicating that analysts have revised their earnings upwards for the upcoming period, suggesting potential for continued financial improvement.
Gartner's profitability is noteworthy, with a gross profit margin of 67.78% and an operating income margin of 18.67% for the same period. An InvestingPro Tip highlights that the company has been profitable over the last twelve months, reinforcing its financial stability.
However, investors should note that Gartner is trading at relatively high multiples. The company's P/E ratio stands at 48.51 (adjusted for the last twelve months as of Q3 2023), and its Price to Book ratio is 37.65. An InvestingPro Tip cautions that Gartner is trading at a high earnings multiple, which may be a consideration for value-oriented investors.
For those interested in a more comprehensive analysis, InvestingPro offers 12 additional tips on Gartner, providing a deeper insight into the company's financial position and market outlook.
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