STAMFORD, CT—Scott Hensel, the Executive Vice President of Global Services & Delivery at Gartner Inc. (NYSE:IT), has recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Hensel sold 1,600 shares of Gartner common stock on November 13, 2024. The shares were sold at a price of $555.00 each, amounting to a total transaction value of $888,000.
Following this transaction, Hensel retains ownership of 18,124 shares of the company. This sale was conducted as a direct transaction, and there were no equity swaps involved. The transaction was officially signed off by Kevin Tang on behalf of Scott Hensel on November 15, 2024.
In other recent news, Gartner Inc. reported a revenue increase of $1.5 billion, marking a 5% year-over-year growth in its third quarter 2024 earnings call. The company's research business, especially its enterprise function leaders segment, showed a robust performance with a 9% contract value growth. Gartner also benefited from a $300 million insurance payout due to conference cancellations. According to CEO Gene Hall and CFO Craig Safian, Gartner updated its 2024 guidance with optimistic projections for revenue and EBITDA, anticipating continued growth in its consulting and tech vendor segments. However, the adjusted EPS of $2.50 was slightly down from $2.56 in the previous year. The company's balance sheet remains strong with $1.8 billion in cash and a gross debt to EBITDA ratio of under 2x. Gartner projects research revenue of at least $5.11 billion, conference revenue of at least $580 million, and consulting revenue of at least $535 million for 2024.
InvestingPro Insights
Scott Hensel's recent sale of Gartner Inc. (NYSE:IT) shares comes at a time when the company's stock is trading near its 52-week high, as indicated by InvestingPro data. The stock's current price is 93.52% of its 52-week high, suggesting strong recent performance. This aligns with the company's impressive 1-year price total return of 28.56%, outpacing many market benchmarks.
InvestingPro Tips highlight that Gartner is trading at a high earnings multiple and a high P/E ratio relative to near-term earnings growth. The company's P/E ratio stands at 38.47, while its adjusted P/E ratio for the last twelve months is even higher at 48.87. This valuation suggests investors are pricing in significant future growth expectations.
Despite the high valuation, Gartner's financials appear robust. The company boasts a gross profit margin of 67.78% and an operating income margin of 18.67% for the last twelve months. These figures indicate strong profitability and operational efficiency, which may justify the premium valuation to some extent.
It's worth noting that while Hensel has sold a portion of his holdings, InvestingPro Tips reveal that 7 analysts have revised their earnings upwards for the upcoming period. This positive sentiment from analysts could signal confidence in Gartner's future performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Gartner, providing deeper insights into the company's financial health and market position.
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