New South Capital Management Inc. Makes New Investment in Gartner, Inc. $IT

Key Points

• New South Capital Management initiated a Gartner position in the third quarter, buying 122,175 shares valued at about $22.8 million. Gartner represented 1.6% of the fund’s portfolio.
• Gartner reported quarterly EPS of $3.59, beating estimates of $2.84, while revenue of $1.50 billion modestly topped expectations but fell 1.2% year over year.
• Analyst sentiment was cautious: the consensus rating was “Reduce,” with a $206.20 average price target; eight analysts rated the shares Hold and two rated them Sell.

New South Capital Management Inc. bought a new stake in Gartner, Inc. (NYSE:IT - Free Report) during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 122,175 shares of the information technology services provider's stock, valued at approximately $22,791,000. Gartner makes up approximately 1.6% of New South Capital Management Inc.'s investment portfolio, making the stock its 22nd biggest holding. New South Capital Management Inc. owned approximately 0.19% of Gartner at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the company. Ritholtz Wealth Management bought a new stake in shares of Gartner in the 3rd quarter valued at approximately $417,000. Illinois Municipal Retirement Fund increased its holdings in Gartner by 43.6% in the third quarter. Illinois Municipal Retirement Fund now owns 27,109 shares of the information technology services provider's stock worth $5,057,000 after buying an additional 8,237 shares during the last quarter. Lido Advisors LLC increased its holdings in Gartner by 40.0% in the third quarter. Lido Advisors LLC now owns 51,476 shares of the information technology services provider's stock worth $9,602,000 after buying an additional 14,709 shares during the last quarter. New York Life Investment Management LLC raised its position in Gartner by 0.5% during the third quarter. New York Life Investment Management LLC now owns 17,654 shares of the information technology services provider's stock valued at $3,293,000 after acquiring an additional 92 shares in the last quarter. Finally, AlphaCore Capital LLC raised its position in Gartner by 41.2% during the third quarter. AlphaCore Capital LLC now owns 3,122 shares of the information technology services provider's stock valued at $582,000 after acquiring an additional 911 shares in the last quarter. Hedge funds and other institutional investors own 91.51% of the company's stock.

Gartner Stock Up 1.9%

Shares of Gartner stock opened at $192.52 on Thursday. The stock has a market capitalization of $12.16 billion, a P/E ratio of 13.72, a PEG ratio of 0.82 and a beta of 0.92. The company has a quick ratio of 0.91, a current ratio of 0.91 and a debt-to-equity ratio of 46.98. The stock has a 50 day moving average price of $196.97 and a two-hundred day moving average price of $168.93. Gartner, Inc. has a 12-month low of $124.25 and a 12-month high of $256.89.

Gartner (NYSE:IT - Get Free Report) last released its quarterly earnings results on Tuesday, November 3rd. The information technology services provider reported $3.59 EPS for the quarter, beating analysts' consensus estimates of $2.84 by $0.75. Gartner had a net margin of 14.81% and a return on equity of 2,287.71%. The company had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.49 billion. During the same quarter last year, the firm posted $2.76 earnings per share. The company's quarterly revenue was down 1.2% compared to the same quarter last year. Equities analysts expect that Gartner, Inc. will post 15.02 earnings per share for the current year.

Analyst Upgrades and Downgrades

IT has been the topic of several analyst reports. Zacks Research lowered shares of Gartner from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. Truist Financial lowered shares of Gartner from a "buy" rating to a "hold" rating and reduced their price objective for the company from $235.00 to $210.00 in a research note on Wednesday, November 4th. Morgan Stanley lifted their price objective on shares of Gartner from $182.00 to $192.00 and gave the company an "equal weight" rating in a research note on Wednesday, November 4th. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $198.00 price objective on shares of Gartner in a report on Tuesday, October 20th. Finally, UBS Group raised their target price on Gartner from $208.00 to $220.00 and gave the company a "neutral" rating in a report on Wednesday, November 4th. Eight research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Reduce" and a consensus target price of $206.20.

Insiders Place Their Bets

In related news, EVP Robin Kranich sold 3,278 shares of the firm's stock in a transaction on Thursday, August 27th. The shares were sold at an average price of $196.50, for a total value of $644,127.00. Following the transaction, the executive vice president directly owned 20,358 shares in the company, valued at approximately $4,000,347. This trade represents a 13.87% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, EVP Akhil Jain sold 700 shares of Gartner stock in a transaction on Monday, August 24th. The stock was sold at an average price of $201.73, for a total transaction of $141,211.00. Following the completion of the transaction, the executive vice president owned 8,130 shares in the company, valued at $1,640,064.90. This trade represents a 7.93% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 2.60% of the company's stock.

Gartner Company Profile

Gartner, Inc. is a global research and advisory company that provides business and technology leaders with insights to support decision-making. Its research covers areas such as information technology, digital transformation, cybersecurity, finance, human resources, and supply chain management. The company offers research subscriptions, advisory services, consulting, and conferences. Its research includes tools and analysis such as Magic Quadrants and Hype Cycles, which help organizations assess markets, technologies, and potential vendors.

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