Gartner (NYSE:IT) Shares Gap Up After Better-Than-Expected Earnings

Gartner, Inc. (NYSE:ITGet Rating) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $269.10, but opened at $285.00. Gartner shares last traded at $286.56, with a volume of 3,624 shares trading hands.

The information technology services provider reported $2.85 EPS for the quarter, beating analysts’ consensus estimates of $2.15 by $0.70. The firm had revenue of $1.38 billion during the quarter, compared to analyst estimates of $1.32 billion. Gartner had a net margin of 16.39% and a return on equity of 239.82%. The business’s revenue for the quarter was up 18.0% on a year-over-year basis. During the same period in the previous year, the business earned $2.24 EPS.

Gartner declared that its board has approved a share repurchase plan on Tuesday, May 3rd that permits the company to buyback $500.00 million in shares. This buyback authorization permits the information technology services provider to repurchase up to 2.2% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Analyst Ratings Changes

Several brokerages recently issued reports on IT. Robert W. Baird upped their target price on shares of Gartner from $334.00 to $365.00 in a research report on Wednesday. TheStreet lowered shares of Gartner from a “b” rating to a “c+” rating in a research report on Tuesday, May 3rd. Bank of America upgraded shares of Gartner from a “neutral” rating to a “buy” rating and set a $340.00 target price for the company in a research report on Thursday, April 14th. Barclays cut their target price on shares of Gartner from $325.00 to $265.00 and set an “equal weight” rating for the company in a research report on Friday, July 1st. Finally, BMO Capital Markets lowered their price target on shares of Gartner from $315.00 to $265.00 and set a “market perform” rating for the company in a research note on Tuesday, June 21st. Two equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $309.00.

Insider Activity

In other news, Director Eileen Serra acquired 700 shares of the stock in a transaction dated Friday, May 6th. The stock was purchased at an average cost of $251.99 per share, with a total value of $176,393.00. Following the completion of the purchase, the director now owns 700 shares in the company, valued at approximately $176,393. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. In related news, EVP Alwyn Dawkins sold 500 shares of the stock in a transaction dated Monday, May 23rd. The shares were sold at an average price of $250.82, for a total value of $125,410.00. Following the completion of the transaction, the executive vice president now directly owns 45,596 shares of the company’s stock, valued at $11,436,388.72. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Eileen Serra purchased 700 shares of the firm’s stock in a transaction that occurred on Friday, May 6th. The stock was bought at an average cost of $251.99 per share, with a total value of $176,393.00. Following the completion of the purchase, the director now owns 700 shares of the company’s stock, valued at $176,393. The disclosure for this purchase can be found here. Over the last ninety days, insiders sold 2,045 shares of company stock valued at $524,584. Insiders own 3.70% of the company’s stock.

Hedge Funds Weigh In On Gartner

A number of institutional investors have recently bought and sold shares of the stock. IHT Wealth Management LLC purchased a new stake in Gartner in the fourth quarter worth about $285,000. Unigestion Holding SA purchased a new stake in Gartner in the fourth quarter worth about $886,000. ProShare Advisors LLC grew its holdings in Gartner by 23.9% in the fourth quarter. ProShare Advisors LLC now owns 27,187 shares of the information technology services provider’s stock worth $9,089,000 after purchasing an additional 5,238 shares during the period. Chevy Chase Trust Holdings Inc. grew its holdings in Gartner by 0.3% in the first quarter. Chevy Chase Trust Holdings Inc. now owns 49,566 shares of the information technology services provider’s stock worth $14,743,000 after purchasing an additional 124 shares during the period. Finally, Baker Tilly Wealth Management LLC grew its holdings in Gartner by 2.7% in the first quarter. Baker Tilly Wealth Management LLC now owns 9,928 shares of the information technology services provider’s stock worth $2,953,000 after purchasing an additional 263 shares during the period. 92.05% of the stock is owned by institutional investors.

Gartner Trading Down 0.5 %

The stock’s fifty day moving average price is $250.24 and its 200 day moving average price is $271.78. The company has a quick ratio of 0.70, a current ratio of 0.70 and a debt-to-equity ratio of 20.79. The stock has a market cap of $23.22 billion, a PE ratio of 30.44 and a beta of 1.45.

About Gartner

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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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