Key Points
- Gartner insiders sold this year as prices rose to new highs: investors should pay attention to the trend.
- The stock price trends higher due to business growth, cash flow, and share repurchases.
- Institutions and analysts provide a strong tailwind that supports the market in 2024.
The story with insider trading in Gartner (NYSE: IT) shares is that insiders are selling in 2024. InsiderTrades.com tracks ten insiders making 12 transactions in calendar Q3, putting it in the #1 spot for insider selling. Sales were made by execs ranging from the CEO to the CFO, numerous EVPs, and several directors, but this is not a red flag for investors. This company utilizes share-based compensation, and sales align with the same. The uptrend in the stock price will likely continue to set new highs in 2024 and 2024.
Institutions and Analysts Add Momentum to Gartner's Uptrend
The price action in Gartner shares is up 60% since October 2023 and 400% since the 2020 lows, providing a compelling reason for insiders to sell. However, institutional and analyst support is strong because the IT business is strong.
The seven analysts tracked by InsiderTrades.com peg the stock at Moderate Buy and have lifted their price targets in 2024. The consensus target assumes fair value with shares near $535, but it is up 50% compared to last year and 12% since last quarter, indicative of the trend's strength. The consensus rises in October, ahead of the Q3 earnings release, and provides a tailwind for the market that should continue to blow in 2025.
Institutional activity is equally supportive of the Gartner market. The institutional activity has been bullish for four consecutive quarters, increasing the total holdings to over 90%, and the trend remains bullish in Q4, providing additional lift for the stock price. The top holders are fund-related, including large holdings by Vanguard, BlackRock, and BAMCO, which account for 25% of the shares. Still, institutional holders are a diversified group, including public and private investment capital, to support and stabilize the price action.
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Gartner Sustains Growth, Retention, and Penetration Drive Results
Gartner sustains growth in 2024, albeit slower than the peaks set in 2021. Growth in FQ2 accelerated sequentially and outpaced the consensus estimates. However, the 6% reported pace is slower than the previous year and slowing over the long term, which may pose a problem for share prices down the road. Until then, the company has also sustained a trend of earnings quality despite headwinds and has been able to increase shareholder value.
Gartner increases shareholder value with growth and compounds it with share buybacks. The company bought back another $340 million of shares in Q2, reducing the average count by nearly 2.0%. Because of the increased authorization, share buybacks are expected to continue robustly in FQ3 and Q4 and will likely continue to be strong in 2025. The board increased the authorization by $600 in July, ensuring repurchases can continue in F2024; another increase is likely at the end of the year.
The outlook for 2025 is solid. Gartner is forecasted to deliver another year of high single-digit revenue growth and leveraged results on the bottom line. Earnings per share are expected to grow by a stronger 12% and may outpace the consensus. The IT and data analytics trend is solid, partly driven by AI.
The Technical Outlook: Gartner Stock in a Strong Uptrend
The price action in Gartner stock is in an uptrend and moving higher. The market set a new all-time high in October and is indicated to continue the trend. Stochastic and MACD show strength, but there is a caveat. Both are high in their respective range, indicating overbought conditions and a growing potential for price correction. The takeaway is that the market for Gartner stock is in an uptrend but may pull back anytime, creating a more attractive entry point likely to attract an inflow of money.
Companies in This Article:
| Company | Current Price | Price Change | Dividend Yield | P/E Ratio | Consensus Rating | Consensus Price Target |
|---|
| Gartner (IT) | $491.25 | +2.1% | N/A | 36.23 | Hold | $543.75 |
Experience
Thomas Hughes has been a contributing writer for InsiderTrades.com since 2019.
Areas of Expertise
Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies
Education
Associate of Arts in Culinary Technology
Past Experience
Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights.
