James C. Smith, a director at Gartner Inc. (NYSE:IT), recently sold shares of the company, according to a filing with the Securities and Exchange Commission. On November 6 and 7, Smith sold a total of 14,447 shares of Gartner common stock. The sales were executed at prices ranging from $535.38 to $540.46 per share, amounting to a total transaction value of approximately $7.76 million.
Following these transactions, Smith now owns 549,827 shares directly. The sales were conducted in multiple trades, with specific price ranges detailed in the filing's footnotes.
In other recent news, Gartner Inc. announced a 5% year-over-year increase in revenue during its third quarter 2024 earnings call, reaching a total of $1.5 billion. The company's research business, particularly its enterprise function leaders segment, demonstrated robust performance with a 9% contract value growth. Gartner also benefited from a $300 million insurance payout due to conference cancellations. In light of these developments, it updated its 2024 guidance with optimistic projections for revenue and EBITDA.
Furthermore, the company's balance sheet remains strong with $1.8 billion in cash and a gross debt to EBITDA ratio of under 2x. However, despite growth, the adjusted EPS of $2.50 was down from $2.56 in the previous year. Lastly, Gartner is optimistic about its 2025 budgets based on client feedback and aims for growth in consulting and tech vendor segments. These are the recent developments for Gartner Inc.
InvestingPro Insights
As James C. Smith reduces his stake in Gartner Inc. (NYSE:IT), recent data from InvestingPro sheds light on the company's current market position. Gartner's stock has shown significant momentum, with a 26.05% price return over the past six months and an impressive 36.46% return over the last year. This upward trend aligns with an InvestingPro Tip indicating that Gartner is trading near its 52-week high, with the current price at 99.11% of that peak.
The company's financial health appears robust, with a market capitalization of $42.41 billion and a revenue of $6.14 billion over the last twelve months as of Q3 2023. Gartner's profitability is noteworthy, boasting a gross profit margin of 67.78% and an operating income margin of 18.67% for the same period. These figures support another InvestingPro Tip that Gartner has been profitable over the last twelve months.
However, investors should note that Gartner is trading at a high earnings multiple, with a P/E ratio of 40.28 and an adjusted P/E ratio of 50.47 for the last twelve months as of Q3 2023. This valuation metric suggests that the stock may be priced at a premium relative to its earnings, which could be a consideration for potential investors.
For those seeking a more comprehensive analysis, InvestingPro offers 16 additional tips on Gartner, providing deeper insights into the company's financial position and market performance.
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