Gartner (NYSE:IT) Reaches New 52-Week Low - Time to Sell?

Key Points

• Gartner's stock reached a new 52-week low of $225.11 during trading, with analysts expressing a generally neutral to negative outlook on the stock following significant reductions in price targets.
• Despite topping earnings estimates with $3.53 per share, Gartner's revenue declined slightly compared to consensus expectations, indicating challenges in maintaining growth amid changing market conditions.
• Recent insider sales, including the CFO selling over $1.5 million in shares, highlight potential concerns about future company performance and ownership sentiment among executives.

Gartner, Inc. (NYSE:IT - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $225.11 and last traded at $228.04, with a volume of 36488 shares changing hands. The stock had previously closed at $229.00.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on IT. UBS Group reaffirmed a "neutral" rating and set a $270.00 price target (down from $480.00) on shares of Gartner in a research note on Wednesday, August 6th. BMO Capital Markets lowered their price target on Gartner from $409.00 to $272.00 and set a "market perform" rating for the company in a research note on Wednesday, August 6th. The Goldman Sachs Group cut their price target on Gartner from $535.00 to $457.00 and set a "buy" rating on the stock in a research note on Wednesday, August 6th. Morgan Stanley cut their price objective on Gartner from $455.00 to $322.00 and set an "equal weight" rating for the company in a research report on Wednesday, August 6th. Finally, Wells Fargo & Company reduced their price target on Gartner from $345.00 to $225.00 and set an "underweight" rating on the stock in a research report on Wednesday, August 6th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $369.25.

Gartner Price Performance

The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 1.61. The firm has a market cap of $17.96 billion, a PE ratio of 14.36 and a beta of 1.19. The stock has a 50 day simple moving average of $375.39 and a 200-day simple moving average of $427.61.

Gartner (NYSE:IT - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The information technology services provider reported $3.53 earnings per share for the quarter, topping analysts' consensus estimates of $3.38 by $0.15. The business had revenue of $1.66 billion during the quarter, compared to the consensus estimate of $1.68 billion. Gartner had a net margin of 19.71% and a return on equity of 82.63%. The company's revenue was up 5.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $3.22 earnings per share. Equities analysts anticipate that Gartner, Inc. will post 12.5 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Craig Safian sold 3,415 shares of the stock in a transaction dated Tuesday, May 13th. The shares were sold at an average price of $450.17, for a total value of $1,537,330.55. Following the completion of the transaction, the chief financial officer owned 77,890 shares in the company, valued at $35,063,741.30. This represents a 4.20% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Akhil Jain sold 625 shares of the stock in a transaction that occurred on Monday, May 19th. The stock was sold at an average price of $450.00, for a total transaction of $281,250.00. Following the completion of the sale, the executive vice president directly owned 6,548 shares of the company's stock, valued at $2,946,600. This trade represents a 8.71% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 4,578 shares of company stock valued at $2,060,191. Corporate insiders own 3.60% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in IT. Cary Street Partners Financial LLC bought a new stake in shares of Gartner in the 4th quarter worth approximately $27,000. Addison Advisors LLC purchased a new stake in shares of Gartner in the second quarter worth approximately $27,000. Ransom Advisory Ltd bought a new stake in Gartner during the 1st quarter valued at $29,000. Itau Unibanco Holding S.A. boosted its position in shares of Gartner by 453.3% in the 4th quarter. Itau Unibanco Holding S.A. now owns 83 shares of the information technology services provider's stock worth $40,000 after purchasing an additional 68 shares in the last quarter. Finally, Olde Wealth Management LLC purchased a new position in shares of Gartner during the 1st quarter valued at about $42,000. Institutional investors own 91.51% of the company's stock.

Gartner Company Profile

Gartner, Inc operates as a research and advisory company in the United States, Canada, Europe, the Middle East, Africa, and internationally. It operates through three segments: Research, Conferences, and Consulting. The Research segment delivers its research primarily through a subscription service that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts.

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