Are Smart Investors Making the Right Decision? Gartner Inc. (IT)

Gartner Inc. (NYSE: IT) stock jumped 2.64% on Thursday to $338.24 against a previous-day closing price of $329.54. With 0.75 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.51 million shares. During the session, the Information Technology Services company that operates in wider Technology sector, reached to the highest price of $340.99 whereas the lowest price it dropped to was $329.57. The 52-week range on IT shows that it touched its highest point at $358.25 and its lowest point at $221.39 during that stretch. It currently has a 1-year price target of $364.26. Beta for the stock currently stands at 1.26.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of IT was up-trending over the past week, with a rise of 2.09%, but this was up by 14.88% over a month. Three-month performance surged to 1.77% while six-month performance fell -1.32%. The stock gained 36.25% in the past year, while it has gained 0.62% so far this year. A look at the trailing 12-month EPS for IT yields 11.59 with Next year EPS estimates of 11.11. For the next quarter, that number is 2.50. This implies an EPS growth rate of 8.20% for this year and 11.04% for next year. EPS is expected to grow by 4.60% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 78.00%.

Float and Shares Shorts:

At present, 79.45 million IT shares are outstanding with a float of 76.57 million shares on hand for trading. On May 14, 2023, short shares totaled 2.16 million, which was 2.73% higher than short shares on Apr 13, 2023. In addition to Mr. Eugene A. Hall as the firm’s CEO & Director, Mr. Craig W. Safian serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 93.35% of IT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 6.70% of IT, in contrast to 54.10% held by mutual funds. Shares owned by individuals account for 39.67%. As the largest shareholder in IT with 11.09% of the stake, The Vanguard Group, Inc. holds 8,764,897 shares worth 8,764,897. A second-largest stockholder of IT, BAMCO, Inc., holds 4,796,458 shares, controlling over 6.07% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in IT, holding 4,205,804 shares or 5.32% stake. With a 2.95% stake in IT, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 2,333,073 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.35% of IT stock, is the second-largest Mutual Fund holder. It holds 1,855,029 shares valued at 561.07 million. Vanguard Mid Cap Index Fund holds 2.22% of the stake in IT, owning 1,753,462 shares worth 530.35 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, IT reported revenue of $1.38B and operating income of $299.40M. The EBITDA in the recently reported quarter was $355.60M and diluted EPS was $2.53.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for IT since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With IT analysts setting a high price target of $407.00 and a low target of $318.00, the average target price over the next 12 months is $364.26. Based on these targets, IT could surge 20.33% to reach the target high and fall by -5.98% to reach the target low. Reaching the average price target will result in a growth of 7.69% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded IT stock several times over the past three months with 14 Buys and 12 Sells. In these transactions, 13,800 shares were bought while 18,238 shares were sold. The number of buy transactions has increased to 118 while that of sell transactions has risen to 141 over the past year. The total number of shares bought during that period was 264,041 while 269,352 shares were sold.

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