Zacks Investment Research Downgrades Gartner (IT) to Sell

Gartner (NYSE:IT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “Gartner has underperformed the industry in the last three months. With modest revenue coming from the U.K., Gartner is likely to be stifled by the renegotiated deals and restrictions imposed on trade with other European Union members post the Brexit referendum. Brexit could further result in higher tariff and non-tariff barriers to trade between the U.K. and the European Union, lowering productivity of the company. Revenue from the federal government business is also exposed to lengthy approval times and other austerity measures, which undermine the long-term growth potential to some extent. Moreover, Gartner has to continually invest in value drivers in order to retain a competitive edge and fend off competition, which increases its operating costs and contract margins. However, the company has a large and diverse addressable market with low customer concentration that mitigates operating risks.”

Several other analysts have also recently weighed in on the stock. Cantor Fitzgerald reiterated a “buy” rating and issued a $139.00 price objective on shares of Gartner in a research note on Thursday, November 2nd. Royal Bank of Canada reiterated a “buy” rating and issued a $143.00 price objective on shares of Gartner in a research note on Friday, November 3rd. BMO Capital Markets reiterated a “buy” rating and issued a $137.00 price objective on shares of Gartner in a research note on Friday, October 13th. Robert W. Baird reiterated a “buy” rating and issued a $135.00 price objective on shares of Gartner in a research note on Friday, November 3rd. Finally, Piper Jaffray Companies reiterated a “hold” rating and issued a $104.00 price objective on shares of Gartner in a research note on Friday, November 3rd. One investment analyst has rated the stock with a sell rating, four have given a hold rating and seven have given a buy rating to the company’s stock. The stock has an average rating of “Buy” and an average price target of $132.60.

Shares of Gartner (NYSE:IT) traded up $0.34 during mid-day trading on Tuesday, hitting $125.19. 464,500 shares of the company traded hands, compared to its average volume of 494,200. The company has a market cap of $11,317.78, a P/E ratio of -368.21, a price-to-earnings-growth ratio of 1.94 and a beta of 1.05. The company has a quick ratio of 0.73, a current ratio of 0.73 and a debt-to-equity ratio of 3.38. Gartner has a 1-year low of $90.37 and a 1-year high of $130.02.

Gartner (NYSE:IT) last announced its earnings results on Thursday, November 2nd. The information technology services provider reported $0.65 EPS for the quarter, topping the consensus estimate of $0.52 by $0.13. The business had revenue of $828.09 million during the quarter, compared to the consensus estimate of $826.09 million. Gartner had a negative net margin of 1.25% and a positive return on equity of 57.60%. Gartner’s revenue was up 44.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.58 EPS. equities research analysts anticipate that Gartner will post 3.42 earnings per share for the current fiscal year.

Several large investors have recently modified their holdings of the company. Raymond James Trust N.A. raised its position in shares of Gartner by 1.3% in the 2nd quarter. Raymond James Trust N.A. now owns 1,952 shares of the information technology services provider’s stock valued at $241,000 after buying an additional 26 shares in the last quarter. Bronfman E.L. Rothschild L.P. raised its position in shares of Gartner by 9.5% in the 2nd quarter. Bronfman E.L. Rothschild L.P. now owns 1,182 shares of the information technology services provider’s stock valued at $146,000 after buying an additional 103 shares in the last quarter. Intellectus Partners LLC raised its position in shares of Gartner by 3.5% in the 2nd quarter. Intellectus Partners LLC now owns 4,439 shares of the information technology services provider’s stock valued at $548,000 after buying an additional 149 shares in the last quarter. Commonwealth Bank of Australia raised its position in shares of Gartner by 20.0% in the 2nd quarter. Commonwealth Bank of Australia now owns 1,200 shares of the information technology services provider’s stock valued at $148,000 after buying an additional 200 shares in the last quarter. Finally, Advisor Group Inc. raised its position in shares of Gartner by 13.4% in the 2nd quarter. Advisor Group Inc. now owns 2,035 shares of the information technology services provider’s stock valued at $251,000 after buying an additional 240 shares in the last quarter. Institutional investors own 95.40% of the company’s stock.

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About Gartner

Gartner, Inc is an information technology research and advisory company. The Company works with clients to research, analyze and interpret the business of information technology (IT), supply chain and marketing within the context of their individual roles. It operates in three segments: Research, Consulting and Events.

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