According to recent institutional holdings data from Quiver Quantitative, hedge funds and asset managers such as Wellington Management, Citadel, and Winslow Capital Management have been increasing their holdings in Gartner Inc. (IT) on the NYSE. Wellington Management, for example, has increased its shares by 12.91%, bringing their total holdings to 1,818,820 shares worth around $644 million dollars. This increase in holdings suggests that many investors are bullish on Gartner Inc.
Gartner Inc. reported strong earnings results for the second quarter of fiscal year 2023. Revenues increased by 9.2% YoY to $1.5 billion dollars, while total contract value saw an 8.9% YoY increase to $4.6 billion dollars. Free cash flow increased by 4% YoY to $410 million dollars, and net income reached $436 million dollars during the quarter. With these positive results, management increased their guidance for free cash flow, adjusted EBITDA, and diluted EPS for 2023. Additionally, Gartner Inc. repurchased 400,000 shares for $132 million dollars in the quarter. These strong financial metrics and share repurchases make Gartner Inc. an attractive investment opportunity.
Gartner Inc. provides actionable insights to executives and their teams, enabling faster and smarter decision-making. The company serves more than 15,000 enterprises in approximately 90 countries across various industries and sizes. Gartner delivers its products and services through three segments: research, conferences, and consulting. The research segment offers guidance and tools to help clients meet their mission-critical priorities. The conferences segment provides opportunities for learning, sharing, and networking. The consulting segment serves senior executives leading technology-driven strategic initiatives. Gartner’s competitive advantages include superior research content, a leading brand name, a large global footprint, an experienced management team, a network of research experts and consultants, and operating leverage within its business model.
Gartner Inc. has a shareholder-friendly management team that creates value for shareholders through share repurchases. In the past few years, the company has repurchased significant amounts of shares, decreasing the number of shares outstanding. The company’s management incentives align with shareholder interests, with a large portion of compensation tied to long-term performance. Gartner Inc. operates efficiently, generating high returns on invested capital. The company has shown sustained growth in revenue, gross profit, earnings, net income, and free cash flow over the past decade. Gartner Inc. has a strong balance sheet with a manageable level of debt. However, some believe that the current valuation may be too high, and it may be wise to wait for a correction before considering an investment.
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