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

Key Points

• Gartner shares plunged from a prior close of $235.26 to an opening price of $208 and last traded near $192, despite the company reporting strong quarterly earnings.
• Third-quarter adjusted EPS of $3.59 exceeded estimates of roughly $2.84–$2.86, while revenue of $1.50 billion slightly topped forecasts; however, revenue declined 1.2% year over year, signaling continued top-line pressure.
• Analyst sentiment remains cautious, with Gartner carrying a consensus “Reduce” rating and an average price target of $198.50; insiders also sold shares during the last quarter.

Gartner, Inc. (NYSE:IT - Get Free Report)'s share price gapped down before the market opened on Tuesday. The stock had previously closed at $235.26, but opened at $208.00. Gartner shares last traded at $192.1410, with a volume of 535,748 shares changing hands.

More Gartner News

Here are the key news stories impacting Gartner this week:

• Positive Sentiment: Gartner reported third-quarter adjusted earnings of $3.59 per share, well above analysts’ consensus estimates of approximately $2.84–$2.86 and up from $2.76 a year earlier. The earnings outperformance suggests stronger-than-expected profitability and was the primary catalyst for the stock’s increase. Gartner Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Quarterly revenue of approximately $1.50 billion modestly exceeded the $1.49 billion consensus forecast. Gartner also reported strong profit growth and provided an updated full-year 2026 outlook, giving investors additional visibility into its performance. Gartner Reports Third Quarter 2026 Financial Results
• Neutral Sentiment: Several reports focused on the earnings release and conference call, with analysts highlighting the earnings beat relative to expectations. The reports did not identify a major change to Gartner’s longer-term outlook beyond the company’s updated 2026 guidance. Gartner Earnings Report and Conference Call
• Negative Sentiment: Revenue declined approximately 1.2%–1.3% year over year to $1.5 billion, making the quarter mixed despite the earnings beat. Continued top-line pressure could limit further upside if investors become concerned about demand or growth prospects. Gartner Reports Mixed Third-Quarter Results with Strong Profit Growth

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on IT shares. Weiss Ratings lowered Gartner from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, October 26th. Zacks Research lowered shares of Gartner from a "strong-buy" rating to a "hold" rating in a report on Monday, October 5th. Wells Fargo & Company boosted their price target on shares of Gartner from $150.00 to $175.00 and gave the stock an "underweight" rating in a research note on Tuesday, October 20th. Morgan Stanley upped their price target on shares of Gartner from $177.00 to $182.00 and gave the company an "equal weight" rating in a research report on Thursday, October 8th. Finally, Truist Financial raised their price objective on Gartner from $205.00 to $235.00 and gave the company a "buy" rating in a research note on Tuesday, October 20th. One equities research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Gartner has a consensus rating of "Reduce" and an average price target of $198.50.

Gartner Price Performance

The firm has a 50-day moving average price of $197.04 and a 200-day moving average price of $170.19. The company has a debt-to-equity ratio of 46.98, a quick ratio of 0.88 and a current ratio of 0.88. The stock has a market cap of $12.87 billion, a P/E ratio of 18.08, a price-to-earnings-growth ratio of 0.82 and a beta of 0.92.

Gartner (NYSE:IT - Get Free Report) last released its earnings results on Tuesday, November 3rd. The information technology services provider reported $3.59 EPS for the quarter, topping analysts' consensus estimates of $2.84 by $0.75. Gartner had a return on equity of 525.46% and a net margin of 11.99%. The firm had revenue of $1.50 billion for the quarter, compared to analysts' expectations of $1.49 billion. During the same period in the prior year, the firm posted $2.76 earnings per share. The company's quarterly revenue was down 1.2% on a year-over-year basis. On average, analysts forecast that Gartner, Inc. will post 14.39 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Gartner news, EVP Yvonne Genovese sold 1,205 shares of Gartner stock in a transaction on Monday, August 10th. The stock was sold at an average price of $190.06, for a total value of $229,022.30. Following the completion of the sale, the executive vice president owned 6,208 shares of the company's stock, valued at approximately $1,179,892.48. This trade represents a 16.26% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Akhil Jain sold 700 shares of the business's stock in a transaction on Monday, August 24th. The stock was sold at an average price of $201.73, for a total value of $141,211.00. Following the completion of the transaction, the executive vice president owned 8,130 shares of the company's stock, valued at $1,640,064.90. This represents a 7.93% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 6,043 shares of company stock valued at $1,172,858. 2.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Gartner

Hedge funds and other institutional investors have recently modified their holdings of the company. Bamco Inc. NY acquired a new position in Gartner in the second quarter valued at about $985,243,000. BlackRock Inc. acquired a new stake in Gartner in the second quarter worth $676,246,000. Bank of America Corp DE acquired a new stake in Gartner in the second quarter worth $117,661,000. Madison Asset Management LLC acquired a new stake in Gartner in the second quarter worth $74,481,000. Finally, Bank of New York Mellon Corp bought a new position in shares of Gartner during the second quarter worth $51,262,000. 91.51% of the stock is owned by institutional investors.

About Gartner

Gartner, Inc is a global research and advisory company that provides information, analysis and guidance to business leaders, technology professionals and public-sector organizations. Its work focuses on helping clients evaluate technology markets, develop business strategies, manage risk and make decisions about digital transformation and other organizational priorities.

The company delivers its services through research and advisory programs, consulting engagements, executive guidance and conferences.

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