Karen E. Dykstra, a director at Gartner Inc. (NYSE:IT), recently sold shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The transaction, which took place on November 6, involved the sale of 1,500 shares at a weighted average price of $529.02, totaling approximately $793,530. Following this transaction, Dykstra retains ownership of 18,325 shares in the company.
The sale was executed in multiple trades with prices ranging from $528.99 to $529.45. The weighted average price reflects the overall transaction value. Dykstra continues to hold her shares directly, as indicated in the filing.
In other recent news, Gartner Inc. reported an encouraging financial performance with a revenue increase of $1.5 billion, marking a 5% year-over-year growth. This was revealed in the company's third quarter 2024 earnings call, where the CEO and CFO also highlighted a 9% contract value growth in its enterprise function leaders segment. In addition, the company received a significant $300 million insurance payout due to conference cancellations.
These recent developments have led Gartner to raise its full-year guidance for revenue, EBITDA, EPS, and free cash flow. The company's balance sheet remains robust with $1.8 billion in cash and a gross debt to EBITDA ratio of under 2x. Projections for 2024 include research revenue of at least $5.11 billion, conference revenue of at least $580 million, and consulting revenue of at least $535 million.
On the downside, Gartner reported a 5% increase in consolidated cost of services, mainly due to higher compensation costs, and an adjusted tax rate rise to 26% from 22% the previous year. However, the company remains optimistic about its growth, with plans for expansion in its consulting and tech vendor segments. Recent developments also include the company's use of AI in client services and a $69 million share repurchase.
InvestingPro Insights
While Karen E. Dykstra's recent sale of Gartner Inc. (NYSE:IT) shares might raise eyebrows, a closer look at the company's financial metrics and market performance reveals a more nuanced picture. According to InvestingPro data, Gartner's market capitalization stands at an impressive $42.41 billion, reflecting its significant presence in the IT consulting and research sector.
Gartner's stock has shown remarkable strength recently, with InvestingPro Tips highlighting a significant return over the last week and a large price uptick over the last six months. In fact, the company's share price is trading near its 52-week high, with a 1-year price total return of 36.46% as of the latest data. This positive momentum suggests that despite Dykstra's sale, investor confidence in Gartner remains robust.
However, it's worth noting 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. This valuation suggests that investors are pricing in strong future growth expectations. The company's revenue growth of 5.37% over the last twelve months, coupled with a healthy gross profit margin of 67.78%, indicates that Gartner continues to perform well operationally.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for Gartner, providing deeper insights into the company's financial health and market position. These additional tips can help contextualize Dykstra's stock sale within the broader picture of Gartner's performance and prospects.
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