Insperity (NYSE:NSP) Stock Price Down 5.3% - Time to Sell?

Key Points

• Insperity's stock price fell by 5.3% to $50.64, with trading volume down 41% compared to its average.
• Analysts have downgraded the stock, with JPMorgan reducing its price target from $68 to $51 and setting an "underweight" rating.
• The company reported earnings of $0.26 per share, falling short of forecasts, and has announced a dividend yield of 4.8% despite a high payout ratio of 226.42%.

Insperity, Inc. (NYSE:NSP - Get Free Report)'s stock price fell 5.3% during mid-day trading on Monday . The company traded as low as $50.64 and last traded at $50.64. 305,237 shares were traded during trading, a decline of 41% from the average session volume of 517,381 shares. The stock had previously closed at $53.47.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on NSP. Truist Financial lowered their price target on Insperity from $70.00 to $50.00 and set a "hold" rating on the stock in a report on Monday, August 4th. JPMorgan Chase & Co. lowered their price target on Insperity from $68.00 to $51.00 and set an "underweight" rating on the stock in a report on Monday, August 4th. Wall Street Zen downgraded Insperity from a "hold" rating to a "sell" rating in a report on Saturday. Finally, Roth Capital lowered their price target on Insperity from $85.00 to $74.00 and set a "buy" rating on the stock in a report on Monday, August 4th. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and one has given a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $58.33.

Insperity Stock Performance

The business has a fifty day simple moving average of $58.59 and a two-hundred day simple moving average of $72.08. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 3.29. The company has a market cap of $1.95 billion, a P/E ratio of 49.01 and a beta of 0.47.

Insperity (NYSE:NSP - Get Free Report) last posted its earnings results on Friday, August 1st. The business services provider reported $0.26 earnings per share for the quarter, missing analysts' consensus estimates of $0.41 by ($0.15). Insperity had a net margin of 0.60% and a return on equity of 35.32%. The firm had revenue of $1.66 billion during the quarter, compared to the consensus estimate of $1.66 billion. During the same period in the prior year, the company posted $0.86 EPS. The firm's revenue was up 3.3% compared to the same quarter last year. On average, sell-side analysts anticipate that Insperity, Inc. will post 2.33 EPS for the current year.

Insperity Dividend Announcement

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 $0.60 dividend. The ex-dividend date of this dividend was Friday, June 6th. This represents a $2.40 dividend on an annualized basis and a yield of 4.6%. Insperity's dividend payout ratio is currently 226.42%.

Insider Buying and Selling

In related news, Director John L. Lumelleau purchased 5,500 shares of Insperity stock in a transaction on Monday, August 4th. The stock was acquired at an average price of $45.36 per share, for a total transaction of $249,480.00. Following the completion of the transaction, the director directly owned 5,500 shares in the company, valued at $249,480. This represents a ∞ increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Eli Jones purchased 2,204 shares of Insperity stock in a transaction on Monday, August 4th. The stock was bought at an average price of $45.41 per share, with a total value of $100,083.64. Following the transaction, the director owned 12,847 shares of the company's stock, valued at approximately $583,382.27. This represents a 20.71% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have purchased 20,194 shares of company stock valued at $925,981 in the last 90 days. Insiders own 5.50% of the company's stock.

Institutional Trading of Insperity

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Private Trust Co. NA increased its position in Insperity by 279.1% in the first quarter. Private Trust Co. NA now owns 326 shares of the business services provider's stock worth $29,000 after buying an additional 240 shares in the last quarter. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Insperity during the first quarter worth about $33,000. DekaBank Deutsche Girozentrale purchased a new stake in shares of Insperity during the first quarter worth about $42,000. First Horizon Advisors Inc. grew its position in shares of Insperity by 56.0% during the first quarter. First Horizon Advisors Inc. now owns 705 shares of the business services provider's stock worth $63,000 after purchasing an additional 253 shares in the last quarter. Finally, Geneos Wealth Management Inc. grew its position in shares of Insperity by 32.2% during the first quarter. Geneos Wealth Management Inc. now owns 747 shares of the business services provider's stock worth $67,000 after purchasing an additional 182 shares in the last quarter. Hedge funds and other institutional investors own 93.44% of the company's stock.

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.