Insperity (NYSE:NSP) Shares Gap Up After Insider Buying Activity

Key Points

• Insperity shares jumped after CEO Paul J. Sarvadi bought 233,000 shares at an average of $34.05 each, a transaction worth about $7.9 million. The stock opened significantly above its prior close and was up about 6% in early trading.
• The company recently beat earnings estimates, reporting $1.31 EPS versus the $1.24 consensus, while revenue came in slightly above expectations at $1.90 billion. However, profitability remains weak, with negative net margin and negative return on equity.
• Insperity also announced a quarterly dividend of $0.60 per share, equal to $2.40 annually and a 6.8% yield. Analysts are mixed on the stock, with a consensus rating of “Reduce” despite some higher price targets.

Insperity, Inc. (NYSE:NSP - Get Free Report) gapped up prior to trading on Friday following insider buying activity. The stock had previously closed at $33.47, but opened at $36.31. Insperity shares last traded at $35.11, with a volume of 71,884 shares.

Specifically, CEO Paul J. Sarvadi purchased 233,000 shares of the firm's stock in a transaction that occurred on Wednesday, June 3rd. The shares were acquired at an average price of $34.05 per share, with a total value of $7,933,650.00. Following the purchase, the chief executive officer directly owned 1,105,912 shares in the company, valued at $37,656,303.60. This represents a 26.69% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Robert W. Baird set a $36.00 price objective on Insperity in a report on Wednesday, February 11th. Roth Mkm set a $54.00 target price on shares of Insperity in a research report on Friday, May 1st. Zacks Research raised shares of Insperity from a "strong sell" rating to a "hold" rating in a report on Monday, April 13th. Wall Street Zen upgraded shares of Insperity from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Insperity from $35.00 to $33.00 and set an "underweight" rating on the stock in a research note on Friday, May 1st. One equities research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Insperity has a consensus rating of "Reduce" and an average target price of $46.00.

Insperity Stock Up 6.0%

The firm has a fifty day moving average price of $30.66 and a 200 day moving average price of $32.91. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 5.51. The company has a market cap of $1.35 billion, a P/E ratio of -52.66 and a beta of 0.59.

Insperity (NYSE:NSP - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The business services provider reported $1.31 earnings per share (EPS) for the quarter, beating 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 business had revenue of $1.90 billion during the quarter, compared to analysts' expectations of $1.89 billion. During the same period in the previous year, the business posted $1.57 earnings per share. The firm's revenue for the quarter 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 forecast that Insperity, Inc. will post 1.18 earnings per share for the current year.

Insperity Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Thursday, June 4th will be given a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 6.8%. The ex-dividend date is Thursday, June 4th. Insperity's dividend payout ratio is presently -358.21%.

Institutional Trading of Insperity

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. lifted its holdings in Insperity by 7.3% during the 4th quarter. Vanguard Group Inc. now owns 4,051,372 shares of the business services provider's stock worth $156,869,000 after buying an additional 274,198 shares in the last quarter. Reinhart Partners LLC. boosted its position in Insperity by 24.6% in the 4th quarter. Reinhart Partners LLC. now owns 2,745,035 shares of the business services provider's stock valued at $106,288,000 after buying an additional 542,709 shares during the last quarter. Charles Schwab Investment Management Inc. increased its stake in shares of Insperity by 7.1% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,596,769 shares of the business services provider's stock valued at $61,827,000 after buying an additional 106,079 shares during the period. Earnest Partners LLC raised its position in shares of Insperity by 13.1% during the fourth quarter. Earnest Partners LLC now owns 1,582,949 shares of the business services provider's stock worth $61,292,000 after acquiring an additional 182,863 shares during the last quarter. Finally, Goldman Sachs Group Inc. raised its position in shares of Insperity by 140.5% during the fourth 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 last quarter. 93.44% of the stock is owned by institutional investors.

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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