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

Key Points

• Insperity shares opened sharply lower on Thursday, gapping down from a prior close of $45.55 to an opening price of $43.02.
• Wall Street sentiment is cautious, with multiple recent downgrades and an average analyst rating of “Reduce” and a consensus price target of $46.00.
• The company recently beat quarterly EPS expectations with $1.31 per share versus $1.24 expected, but profitability remains weak and leverage is high, including a debt-to-equity ratio of 5.51.

Insperity, Inc. (NYSE:NSP - Get Free Report)'s stock price gapped down before the market opened on Thursday . The stock had previously closed at $45.55, but opened at $43.02. Insperity shares last traded at $43.4380, with a volume of 8,773 shares.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Zacks Research cut shares of Insperity from a "hold" rating to a "strong sell" rating in a research note on Tuesday, June 30th. JPMorgan Chase & Co. cut their price objective on shares of Insperity from $35.00 to $33.00 and set an "underweight" rating on the stock in a research report on Friday, May 1st. Weiss Ratings restated a "sell (d)" rating on shares of Insperity in a report on Wednesday, June 24th. Roth Capital set a $54.00 target price on shares of Insperity in a research report on Friday, May 1st. Finally, Wall Street Zen upgraded shares of Insperity from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, Insperity has an average rating of "Reduce" and an average price target of $46.00.

Insperity Price Performance

The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 5.51. The firm has a market capitalization of $1.68 billion, a price-to-earnings ratio of -65.71 and a beta of 0.55. The company's 50 day moving average is $35.73 and its 200-day moving average is $33.53.

Insperity (NYSE:NSP - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The business services provider reported $1.31 earnings per share for the quarter, topping analysts' consensus estimates of $1.24 by $0.07. Insperity had a negative return on equity of 28.26% and a negative net margin of 0.37%.The firm had revenue of $1.90 billion for the quarter, compared to the consensus estimate of $1.89 billion. During the same quarter in the previous year, the business earned $1.57 earnings per share. The business's revenue was up 1.7% compared to the same quarter last year. Insperity has set its FY 2026 guidance at 1.600-2.600 EPS and its Q2 2026 guidance at 0.020-0.500 EPS. Equities research analysts anticipate that Insperity, Inc. will post 0.99 earnings per share for the current year.

Insperity Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Thursday, June 4th were issued a dividend of $0.60 per share. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $2.40 annualized dividend and a yield of 5.4%. Insperity's dividend payout ratio (DPR) is currently -358.21%.

Insider Buying and Selling

In related news, CEO Paul J. Sarvadi acquired 233,000 shares of Insperity stock in a transaction on Wednesday, June 3rd. The stock was purchased at an average cost of $34.05 per share, with a total value of $7,933,650.00. Following the completion of the transaction, the chief executive officer directly owned 1,105,912 shares in the company, valued at $37,656,303.60. This trade represents a 26.69% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 5.77% of the stock is currently owned by company insiders.

Institutional Trading of Insperity

Several hedge funds and other institutional investors have recently modified their holdings of NSP. Geneos Wealth Management Inc. grew its stake in Insperity by 32.2% in the 1st quarter. Geneos Wealth Management Inc. now owns 747 shares of the business services provider's stock valued at $67,000 after buying an additional 182 shares during the last quarter. NorthCrest Asset Manangement LLC boosted its holdings in shares of Insperity by 4.2% during the fourth quarter. NorthCrest Asset Manangement LLC now owns 8,911 shares of the business services provider's stock worth $377,000 after acquiring an additional 363 shares during the period. Assetmark Inc. boosted its holdings in shares of Insperity by 15.7% during the fourth quarter. Assetmark Inc. now owns 2,852 shares of the business services provider's stock worth $110,000 after acquiring an additional 387 shares during the period. Caitong International Asset Management Co. Ltd grew its position in shares of Insperity by 75.9% in the third quarter. Caitong International Asset Management Co. Ltd now owns 964 shares of the business services provider's stock valued at $47,000 after purchasing an additional 416 shares during the last quarter. Finally, Public Employees Retirement System of Ohio grew its position in shares of Insperity by 48.1% in the first quarter. Public Employees Retirement System of Ohio now owns 1,299 shares of the business services provider's stock valued at $35,000 after purchasing an additional 422 shares during the last quarter. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.