Gartner (NYSE:IT) Shares Down 5.7% - Should You Sell?

Key Points

• Gartner's stock price dropped 5.7% during mid-day trading, with a recent trading price of $232.25 following a close of $246.28.
• Several brokerages have reduced their price targets for Gartner, with Wells Fargo cutting theirs from $345.00 to $225.00 and Morgan Stanley from $455.00 to $322.00, reflecting increasing bearish sentiment.
• Despite the decline, Gartner reported earnings of $3.53 per share, surpassing expectations and showing a 5.7% year-over-year revenue increase, though revenue was slightly below analyst estimates.

Gartner, Inc. (NYSE:IT - Get Free Report)'s stock price fell 5.7% during trading on Wednesday . The stock traded as low as $232.45 and last traded at $232.25. 463,252 shares traded hands during trading, a decline of 45% from the average session volume of 848,118 shares. The stock had previously closed at $246.28.

Analyst Ratings Changes

Several research firms have commented on IT. Wolfe Research began coverage on Gartner in a research note on Wednesday, September 3rd. They set a "peer perform" rating for the company. Barclays cut their price objective on Gartner from $475.00 to $320.00 and set an "overweight" rating for the company in a research note on Wednesday, August 6th. Wells Fargo & Company decreased their target price on shares of Gartner from $345.00 to $225.00 and set an "underweight" rating on the stock in a research note on Wednesday, August 6th. Royal Bank Of Canada began coverage on shares of Gartner in a research note on Tuesday, September 9th. They issued a "sector perform" rating and a $263.00 target price on the stock. Finally, BMO Capital Markets decreased their target price on shares of Gartner from $409.00 to $272.00 and set a "market perform" rating on the stock in a research note on Wednesday, August 6th. Three analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $357.44.

Gartner Stock Down 0.0%

The business's 50 day moving average price is $292.34 and its 200-day moving average price is $378.76. The firm has a market capitalization of $18.73 billion, a PE ratio of 15.22 and a beta of 1.20. The company has a debt-to-equity ratio of 1.61, a quick ratio of 1.11 and a current ratio of 1.11.

Gartner (NYSE:IT - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The information technology services provider reported $3.53 EPS for the quarter, topping the consensus estimate of $3.38 by $0.15. Gartner had a return on equity of 82.63% and a net margin of 19.71%.The business had revenue of $1.66 billion during the quarter, compared to analyst estimates of $1.68 billion. During the same period last year, the business posted $3.22 earnings per share. The company's quarterly revenue was up 5.7% on a year-over-year basis. Gartner has set its FY 2025 guidance at 11.750- EPS. As a group, equities research analysts forecast that Gartner, Inc. will post 12.5 earnings per share for the current year.

Insider Activity at Gartner

In other Gartner news, Director Jose M. Gutierrez acquired 417 shares of the stock in a transaction dated Monday, August 18th. The stock was acquired at an average price of $239.80 per share, with a total value of $99,996.60. Following the completion of the purchase, the director owned 2,080 shares in the company, valued at $498,784. This trade represents a 25.08% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP John J. Rinello sold 105 shares of the firm's stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $249.71, for a total transaction of $26,219.55. Following the completion of the transaction, the senior vice president directly owned 3,225 shares of the company's stock, valued at approximately $805,314.75. The trade was a 3.15% decrease in their position. The disclosure for this sale can be found here. Company insiders own 2.30% of the company's stock.

Institutional Investors Weigh In On Gartner

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Cornerstone Advisory LLC raised its holdings in shares of Gartner by 0.8% in the 4th quarter. Cornerstone Advisory LLC now owns 2,803 shares of the information technology services provider's stock valued at $1,443,000 after purchasing an additional 21 shares in the last quarter. Connecticut Wealth Management LLC raised its holdings in shares of Gartner by 0.6% in the 4th quarter. Connecticut Wealth Management LLC now owns 4,604 shares of the information technology services provider's stock valued at $2,230,000 after purchasing an additional 26 shares in the last quarter. Applied Finance Capital Management LLC raised its holdings in shares of Gartner by 1.5% in the 1st quarter. Applied Finance Capital Management LLC now owns 1,945 shares of the information technology services provider's stock valued at $816,000 after purchasing an additional 29 shares in the last quarter. Allworth Financial LP raised its holdings in shares of Gartner by 5.6% in the 1st quarter. Allworth Financial LP now owns 562 shares of the information technology services provider's stock valued at $235,000 after purchasing an additional 30 shares in the last quarter. Finally, Brighton Jones LLC raised its holdings in shares of Gartner by 4.9% in the 1st quarter. Brighton Jones LLC now owns 668 shares of the information technology services provider's stock valued at $280,000 after purchasing an additional 31 shares in the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

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.