Insperity (NYSE:NSP) Reaches New 1-Year Low After Earnings Miss

Key Points

• Insperity's stock reached a new 52-week low at $47.88 after the company reported quarterly earnings of $0.26 EPS, missing analysts' expectations of $0.41 EPS.
• The company declared a quarterly dividend of $0.60 per share, representing an annualized yield of 5.2%, despite a high dividend payout ratio of 142.86%.
• Analyst ratings for Insperity have been downgraded, with Truist Financial lowering the price target from $82 to $70 and changing its rating to "hold."

Insperity, Inc. (NYSE:NSP - Get Free Report) shares reached a new 52-week low during mid-day trading on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $48.98 and last traded at $47.88, with a volume of 199347 shares traded. The stock had previously closed at $59.58.

The business services provider reported $0.26 EPS for the quarter, missing analysts' consensus estimates of $0.41 by ($0.15). The business had revenue of $1.66 billion during the quarter, compared to analysts' expectations of $1.66 billion. Insperity had a net margin of 0.95% and a return on equity of 52.17%. The company's revenue for the quarter was up 3.3% on a year-over-year basis. During the same period in the prior year, the company posted $0.86 EPS.

Insperity Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 20th. Shareholders of record on Friday, June 6th were issued a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a yield of 5.2%. The ex-dividend date of this dividend was Friday, June 6th. Insperity's dividend payout ratio (DPR) is currently 142.86%.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on NSP. Truist Financial dropped their price target on Insperity from $82.00 to $70.00 and set a "hold" rating on the stock in a research report on Wednesday, April 30th. Wall Street Zen cut Insperity from a "buy" rating to a "hold" rating in a research report on Wednesday, April 30th.

Insider Transactions at Insperity

In other Insperity news, CEO Paul J. Sarvadi sold 14,203 shares of the stock in a transaction on Monday, May 5th. The stock was sold at an average price of $65.26, for a total transaction of $926,887.78. Following the completion of the transaction, the chief executive officer directly owned 458,589 shares of the company's stock, valued at approximately $29,927,518.14. This trade represents a 3.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 5.29% of the company's stock.

Hedge Funds Weigh In On Insperity

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Oppenheimer Asset Management Inc. boosted its stake in shares of Insperity by 6.8% during the 2nd quarter. Oppenheimer Asset Management Inc. now owns 32,804 shares of the business services provider's stock worth $1,972,000 after acquiring an additional 2,092 shares in the last quarter. State of New Jersey Common Pension Fund D boosted its stake in shares of Insperity by 24.7% during the 2nd quarter. State of New Jersey Common Pension Fund D now owns 28,199 shares of the business services provider's stock worth $1,695,000 after acquiring an additional 5,581 shares in the last quarter. AlphaQuest LLC bought a new stake in shares of Insperity during the 2nd quarter worth $255,000. Caitong International Asset Management Co. Ltd boosted its stake in shares of Insperity by 49.3% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 548 shares of the business services provider's stock worth $33,000 after acquiring an additional 181 shares in the last quarter. Finally, Paralel Advisors LLC boosted its stake in shares of Insperity by 30.7% during the 2nd quarter. Paralel Advisors LLC now owns 29,941 shares of the business services provider's stock worth $1,800,000 after acquiring an additional 7,036 shares in the last quarter. 93.44% of the stock is owned by institutional investors.

Insperity Trading Down 22.0%

The firm has a market capitalization of $1.75 billion, a P/E ratio of 28.38 and a beta of 0.48. The company has a debt-to-equity ratio of 3.66, a quick ratio of 1.13 and a current ratio of 1.13. The firm has a 50 day moving average price of $60.93 and a two-hundred day moving average price of $73.68.

About Insperity

Insperity, Inc engages in the provision of human resources (HR) and business solutions to improve business performance for small and medium-sized businesses primarily in the United States. It offers its HR services through its workforce optimization and workforce synchronization solutions that include a range of human resources functions, such as payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management, and training and development services.

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