We wouldn't blame Gartner, Inc. (NYSE:IT) shareholders if they were a little worried about the fact that James Smith, the Independent Chairman of the Board recently netted about US$4.6m selling shares at an average price of US$461. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.2%.
The Last 12 Months Of Insider Transactions At Gartner
Notably, that recent sale by Independent Chairman of the Board James Smith was not the only time they sold Gartner shares this year. They previously made an even bigger sale of -US$7.9m worth of shares at a price of US$400 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$454. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 2.2% of James Smith's holding.
Gartner insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Gartner insiders own 3.1% of the company, currently worth about US$1.1b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Gartner Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Gartner makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gartner. Case in point: We've spotted 2 warning signs for Gartner you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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