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    Gartner (IT): Reassessing Valuation After Insider Buying, $1 Billion Buyback and ESG Index Inclusion

    Simply Wall St·12/16/2025 07:15:15
    語音播報

    Gartner (IT) just caught investors attention again after a director bought shares and management authorized a record $1 billion buyback, which some see as a signal of confidence even as growth and margins face pressure.

    See our latest analysis for Gartner.

    The latest bounce, including a 5.33% 1 day share price return and 8.39% 7 day share price return to $246.35, has eased some nerves. However, it comes after a brutal year to date share price decline of 49.03 percent and a 1 year total shareholder return of 50.98 percent in the red, reminding investors that while sentiment is stabilizing, the longer term recovery story is still rebuilding.

    If this kind of insider backed reset has you rethinking your tech exposure, it might be worth scanning fast growing stocks with high insider ownership to spot other growth stories where management has serious skin in the game.

    With analysts still valuing Gartner above its current price and management leaning in with fresh capital, investors now face a key question: is this a mispriced compounder in transition, or is the market already discounting its slower growth ahead?

    Most Popular Narrative Narrative: 13.3% Undervalued

    With Gartner closing at $246.35 against a narrative fair value of about $284, the stance is that the market is underpricing its longer term cash generation potential.

    The rollout of AskGartner, a proprietary AI-powered tool, is expected to deepen client engagement, increase user efficiency, and make Gartner's vast research more accessible. This could boost client retention and subscription value over time, contributing to predictable recurring revenues and potentially supporting margin expansion.

    Read the complete narrative.

    Want to see how modest top line growth, thinner margins, and a surprisingly rich future earnings multiple can still justify upside from here? The full narrative spells out the math, step by step, and shows exactly how earnings power, shrinking share count, and a higher forward valuation multiple combine to support that higher fair value.

    Result: Fair Value of $284.27 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, sustained corporate cost cutting and increasing reliance on cheaper AI tools could weigh on subscription renewals and challenge Gartner's premium pricing power.

    Find out about the key risks to this Gartner narrative.

    Build Your Own Gartner Narrative

    If this view does not quite match your own, or you would rather dig into the numbers yourself, you can build a personalized narrative in under three minutes, starting with Do it your way.

    A great starting point for your Gartner research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

    Looking for more investment ideas?

    Before you move on, make sure you are not leaving better opportunities on the table by ignoring other sectors where strong fundamentals and momentum are lining up.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.