We'd be surprised if Gartner, Inc. (NYSE:IT) shareholders haven't noticed that the Executive Vice President of Human Resources, Robin Kranich, recently sold US$441k worth of stock at US$156 per share. That sale was 35% of their holding, so it does make us raise an eyebrow.
Gartner Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the CEO & Director, Eugene Hall, sold US$13m worth of shares at a price of US$144 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$158. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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 7.4% of Eugene Hall's holding.
Over the last year, we note insiders sold 157284 shares worth US$23m. In the last year Gartner insiders didn't buy any company stock. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Gartner better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Gartner
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Gartner insiders own 3.3% of the company, worth about US$466m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Gartner Insider Transactions Indicate?
Insiders haven't bought Gartner stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Gartner is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Gartner.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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, but not derivative transactions.
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