Insperity (NYSE:NSP) Shares Down 7.2% - Should You Sell?

Key Points

• Insperity shares fell 7.2% in Wednesday trading, with the stock dropping to as low as $29.33 as volume came in far below average.
• Analyst sentiment remains cautious: the stock has an average rating of “Reduce” and an average price target of $46, while JPMorgan recently cut its target to $33 and kept an underweight rating.
• The company reported better-than-expected quarterly earnings and revenue, but its profitability remains weak, and the stock also offers a high dividend yield of 8.3% backed by a negative payout ratio.

Shares of Insperity, Inc. (NYSE:NSP - Get Free Report) were down 7.2% during trading on Wednesday . The stock traded as low as $29.33 and last traded at $29.29. Approximately 75,512 shares changed hands during trading, a decline of 93% from the average daily volume of 1,112,744 shares. The stock had previously closed at $31.57.

Analyst Upgrades and Downgrades

Several analysts have commented on NSP shares. Roth Mkm set a $54.00 target price on shares of Insperity in a report on Friday, May 1st. Wall Street Zen upgraded Insperity from a "sell" rating to a "hold" rating in a report on Saturday. Weiss Ratings reiterated a "sell (d)" rating on shares of Insperity in a report on Friday, March 27th. JPMorgan Chase & Co. lowered their target price on Insperity from $35.00 to $33.00 and set an "underweight" rating for the company in a report on Friday, May 1st. Finally, Robert W. Baird set a $36.00 target price on Insperity in a report on Wednesday, February 11th. One equities research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Reduce" and an average price target of $46.00.

Insperity Trading Down 8.1%

The business has a 50-day simple moving average of $27.23 and a two-hundred day simple moving average of $33.72. The company has a debt-to-equity ratio of 5.51, a quick ratio of 1.09 and a current ratio of 1.09. The stock has a market cap of $1.11 billion, a price-to-earnings ratio of -43.28 and a beta of 0.60.

Insperity (NYSE:NSP - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The business services provider reported $1.31 EPS for the quarter, topping the consensus estimate of $1.24 by $0.07. Insperity had a negative net margin of 0.37% and a negative return on equity of 28.26%. The firm had revenue of $1.90 billion for the quarter, compared to analysts' expectations of $1.89 billion. During the same period in the previous year, the firm posted $1.57 EPS. The company's revenue for the quarter was up 1.7% on a year-over-year basis. Insperity has set its FY 2026 guidance at 1.600-2.600 EPS and its Q2 2026 guidance at 0.020-0.500 EPS. As a group, research analysts forecast that Insperity, Inc. will post 1.18 EPS for the current year.

Insperity Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Friday, March 6th were given a dividend of $0.60 per share. The ex-dividend date of this dividend was Friday, March 6th. This represents a $2.40 annualized dividend and a yield of 8.3%. Insperity's payout ratio is -358.21%.

Insider Activity at Insperity

In related news, CEO Paul J. Sarvadi purchased 160,000 shares of the stock in a transaction on Wednesday, March 18th. The shares were purchased at an average price of $23.22 per share, with a total value of $3,715,200.00. Following the transaction, the chief executive officer directly owned 972,912 shares of the company's stock, valued at $22,591,016.64. This trade represents a 19.68% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP James D. Allison purchased 10,000 shares of the stock in a transaction on Tuesday, March 10th. The shares were bought at an average cost of $20.45 per share, for a total transaction of $204,500.00. Following the transaction, the executive vice president directly owned 94,272 shares in the company, valued at approximately $1,927,862.40. The trade was a 11.87% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have acquired a total of 314,437 shares of company stock worth $7,814,246 in the last ninety days. Insiders own 5.77% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of NSP. LRI Investments LLC grew its position in shares of Insperity by 134.0% in the 3rd quarter. LRI Investments LLC now owns 606 shares of the business services provider's stock valued at $30,000 after acquiring an additional 347 shares during the period. Signaturefd LLC grew its position in shares of Insperity by 363.3% in the fourth quarter. Signaturefd LLC now owns 959 shares of the business services provider's stock valued at $37,000 after purchasing an additional 752 shares during the last quarter. Farther Finance Advisors LLC boosted its position in shares of Insperity by 871.6% in the fourth quarter. Farther Finance Advisors LLC now owns 991 shares of the business services provider's stock valued at $38,000 after acquiring an additional 889 shares during the period. Aster Capital Management DIFC Ltd acquired a new stake in shares of Insperity in the third quarter valued at approximately $41,000. Finally, Allworth Financial LP boosted its stake in shares of Insperity by 845.3% in the fourth quarter. Allworth Financial LP now owns 1,106 shares of the business services provider's stock valued at $43,000 after buying an additional 989 shares during the period. Institutional investors own 93.44% of the company's stock.

Insperity Company Profile

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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