05. Gartner, Inc. (NYSE:IT)
Number of Hedge Fund Holders: 44
Gartner, Inc. (NYSE:IT) is a global research and advisory company operating in the US, Canada, Europe, the Middle East, Africa, and internationally through its Research, Conferences, and Consulting segments. The Consulting segment provides market-leading research, custom analysis, and support services, focusing on IT cost optimization, digital transformation, and IT sourcing optimization.
Gartner, Inc. (NYSE:IT) exceeded analyst expectations in Q2, reporting an adjusted EPS of $3.22, beating the consensus of $3.03. Revenue also surpassed forecasts, reaching $1.6 billion compared to the expected $1.59 billion. Despite a decline in operating cash flow and free cash flow by 15.1% and 17.0% respectively, the Board of Directors increased the share repurchase authorization by $600 million in July 2024, showing confidence in the company’s financial stability. On July 11, Morgan Stanley analyst Toni Kaplan maintained a hold rating on Gartner, Inc. (NYSE:IT) and raised the target price from $400 to $470.
In Q1 2024, the count of hedge funds holding stakes in Gartner, Inc. (NYSE:IT) rose to 44 from 41 in the previous quarter, based on Insider Monkey’s database of 920 hedge funds. These stakes collectively amount to around $2.76 billion in value. David Blood And Al Gore’s Generation Investment Management emerged as the largest stakeholder among these hedge funds during this period.
Baron Asset Fund stated the following regarding Gartner, Inc. (NYSE:IT) in its first quarter 2024 investor letter:
“Shares of Gartner, Inc. (NYSE:IT), the leading provider of syndicated research to the IT sector, contributed to performance. Fourth quarter financial results were mixed, with declines in net income and EPS. However, solid increases in contract value and strong full-year performance, including a 9% increase in net income and an 11% rise in diluted EPS, helped boost the company’s share price. In addition, a 19% increase in free cash flow for the quarter and 6% for the full year underscored Gartner’s operational efficiency. Gartner’s core subscription research businesses compounded at attractive rates, and we believe growth is poised to accelerate. We think Gartner will emerge as a key decision support resource for every company evaluating the opportunities and risks of AI on its business, providing a tailwind to volume growth and pricing realization. We expect Gartner’s sustained revenue growth and focus on cost control to drive continued margin expansion and enhanced free-cash-flow generation. The company’s balance sheet is in excellent shape and can support aggressive repurchases and bolt-on acquisitions, in our view.”
