Insider Buying: Insperity (NYSE:NSP) CEO Buys 160,000 Shares of Stock

Key Points

• Insperity CEO Paul Sarvadi purchased 160,000 shares on March 18 at an average price of $23.22, spending $3.715M and boosting his direct stake by 19.68% to 972,912 shares (worth roughly $22.6M).
• Insperity announced a $0.60 quarterly dividend (ex-dividend March 6, payable March 20), implying a $2.40 annualized payout and a 10.6% yield, but the reported payout ratio of -1,200% raises questions about sustainability.
• Recent results and sentiment are weak: the company missed Q4 EPS (-$0.60 vs. -$0.47 est.) with revenue roughly in line, and analysts carry a consensus "Reduce" rating with an average price target of $47.50.

Insperity, Inc. (NYSE:NSP - Get Free Report) CEO Paul Sarvadi purchased 160,000 shares of the stock in a transaction that occurred on Wednesday, March 18th. The stock was bought at an average cost of $23.22 per share, with a total value of $3,715,200.00. Following the completion of the transaction, the chief executive officer directly owned 972,912 shares in the company, valued at $22,591,016.64. The trade was a 19.68% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Insperity Stock Down 1.5%

NSP traded down $0.36 during mid-day trading on Thursday, reaching $22.73. 1,225,397 shares of the stock were exchanged, compared to its average volume of 1,223,107. Insperity, Inc. has a 1 year low of $18.57 and a 1 year high of $90.63. The company has a debt-to-equity ratio of 8.02, a quick ratio of 1.06 and a current ratio of 1.06. The stock has a market capitalization of $857.41 million, a PE ratio of -113.63 and a beta of 0.53. The company has a 50 day moving average price of $32.69 and a two-hundred day moving average price of $39.26.

Insperity (NYSE:NSP - Get Free Report) last released its quarterly earnings results on Tuesday, February 10th. The business services provider reported ($0.60) earnings per share for the quarter, missing analysts' consensus estimates of ($0.47) by ($0.13). Insperity had a negative net margin of 0.10% and a negative return on equity of 12.09%. The firm had revenue of $1.67 billion for the quarter, compared to the consensus estimate of $1.68 billion. During the same period in the previous year, the business earned $0.05 earnings per share. The firm's revenue for the quarter was up 3.4% on a year-over-year basis. Insperity has set its Q1 2026 guidance at 1.030-1.500 EPS and its FY 2026 guidance at 1.690-2.720 EPS. As a group, research analysts anticipate that Insperity, Inc. will post 2.33 EPS for the current year.

Insperity Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Friday, March 6th will be issued a $0.60 dividend. The ex-dividend date of this dividend is Friday, March 6th. This represents a $2.40 annualized dividend and a dividend yield of 10.6%. Insperity's dividend payout ratio is currently -1,200.00%.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. Robert W. Baird set a $36.00 price target on Insperity in a report on Wednesday, February 11th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Insperity in a research report on Monday, December 29th. The Goldman Sachs Group set a $62.00 target price on Insperity in a research note on Monday, January 5th. Zacks Research downgraded shares of Insperity from a "hold" rating to a "strong sell" rating in a report on Tuesday, February 3rd. Finally, Wall Street Zen upgraded shares of Insperity from a "sell" rating to a "hold" rating in a research report on Saturday, March 14th. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and an average price target of $47.50.

Institutional Trading of Insperity

Several hedge funds have recently made changes to their positions in NSP. Goldman Sachs Group Inc. grew its stake in shares of Insperity by 140.5% during the 4th quarter. Goldman Sachs Group Inc. now owns 1,471,160 shares of the business services provider's stock worth $56,963,000 after acquiring an additional 859,326 shares during the period. Invesco Ltd. raised its stake in Insperity by 117.8% in the 4th quarter. Invesco Ltd. now owns 1,137,255 shares of the business services provider's stock valued at $44,035,000 after acquiring an additional 615,100 shares during the period. Reinhart Partners LLC. lifted its holdings in Insperity by 24.6% during the fourth quarter. Reinhart Partners LLC. now owns 2,745,035 shares of the business services provider's stock valued at $106,288,000 after purchasing an additional 542,709 shares during the last quarter. Norges Bank purchased a new stake in Insperity during the second quarter valued at about $26,960,000. Finally, Two Sigma Investments LP boosted its position in Insperity by 601.2% during the third quarter. Two Sigma Investments LP now owns 470,820 shares of the business services provider's stock worth $23,164,000 after purchasing an additional 403,679 shares during the period. 93.44% of the stock is currently owned by institutional investors.

About Insperity

Insperity, Inc is a leading provider of human resources and business performance solutions designed to help small and midsize businesses operate more efficiently. Headquartered in Kingwood, Texas, the company offers a comprehensive suite of products and services that span workforce management, payroll administration, employee benefits, risk management, and talent development. By leveraging its proprietary technology platform and team of HR experts, Insperity enables clients to focus on core business objectives while outsourcing complex administrative functions.

The company's flagship offering is its Professional Employer Organization (PEO) service, which allows clients to outsource critical HR tasks such as payroll processing, workers' compensation administration, and compliance with employment regulations.

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