Karen Dykstra Executes Sell Order: Offloads $792K In Gartner Stock
On June 10, a recent SEC filing unveiled that Karen Dykstra, Director at Gartner (NYSE:IT) made an insider sell.
What Happened: Dykstra's decision to sell 1,880 shares of Gartner was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $792,438.
Gartner shares are trading down 1.19% at $417.47 at the time of this writing on Wednesday morning.
Get to Know Gartner Better
Gartner Inc provides independent research and analysis on information technology and other related technology industries. Its research is delivered to clients' desktops in the form of reports, briefings, and updates. Typical clients are chief information officers and other business executives who help plan companies' IT budgets. Gartner also provides consulting services. The company operates through three business segments, namely Research, Conferences and Consulting. The company generates majority of the revenue from Research segment.
Understanding the Numbers: Gartner's Finances
Revenue Growth: Gartner's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 4.16%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Interpreting Earnings Metrics:
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Gross Margin: The company excels with a remarkable gross margin of 69.04%, indicating superior cost efficiency and profitability compared to its industry peers.
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Earnings per Share (EPS): Gartner's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.73.
Debt Management: Gartner's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.86, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Market Valuation:
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Price to Earnings (P/E) Ratio: Gartner's P/E ratio of 26.34 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 5.21 as compared to the industry average, the stock might be considered overvalued based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 19.27, Gartner demonstrates a robust market valuation, outperforming industry benchmarks.
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
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Why Insider Activity Matters in Finance
Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
Navigating the World of Insider Transaction Codes
Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Gartner's Insider Trades.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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