Insperity (NYSE:NSP) Stock Price Down 5.3% - Here's Why

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%.

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

Analyst Ratings Changes

A number of analysts have weighed in on the company. JPMorgan Chase & Co. reduced their target price on Insperity from $68.00 to $51.00 and set an "underweight" rating on the stock in a research note on Monday, August 4th. Wall Street Zen lowered Insperity from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Roth Capital reduced their target price on Insperity from $85.00 to $74.00 and set a "buy" rating on the stock in a research note on Monday, August 4th. Finally, Truist Financial reduced their target price on Insperity from $70.00 to $50.00 and set a "hold" rating on the stock in a research note on Monday, August 4th. Two investment analysts have rated the stock with a sell rating, two have given a hold rating and one has issued a buy rating to the company's stock. Based on data from MarketBeat.com, Insperity has a consensus rating of "Hold" and an average target price of $58.33.

Insperity Stock Performance

The stock has a market cap of $1.93 billion, a PE ratio of 48.24 and a beta of 0.47. 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 firm has a 50 day moving average price of $57.91 and a 200 day moving average price of $71.56.

Insperity (NYSE:NSP - Get Free Report) last announced its quarterly earnings results on Friday, August 1st. The business services provider reported $0.26 EPS for the quarter, missing the consensus estimate 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 for the quarter, compared to analysts' expectations of $1.66 billion. During the same quarter in the prior year, the business posted $0.86 EPS. The business's quarterly revenue was up 3.3% on a year-over-year basis. As a group, research analysts forecast that Insperity, Inc. will post 2.33 earnings per share for the current year.

Insperity Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, June 20th. Shareholders of record on Friday, June 6th were issued a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 4.7%. The ex-dividend date of this dividend was Friday, June 6th. Insperity's dividend payout ratio (DPR) is currently 226.42%.

Insiders Place Their Bets

In other Insperity news, Director Carol R. Kaufman purchased 5,000 shares of the stock in a transaction on Monday, August 4th. The stock was acquired at an average price of $45.24 per share, with a total value of $226,200.00. Following the completion of the acquisition, the director owned 47,067 shares in the company, valued at $2,129,311.08. The trade was a 11.89% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director John L. Lumelleau purchased 5,500 shares of the stock in a transaction on Monday, August 4th. The stock was acquired at an average cost of $45.36 per share, with a total value of $249,480.00. Following the acquisition, the director owned 5,500 shares of the company's stock, valued at approximately $249,480. This represents a ∞ increase in their position. The disclosure for this purchase can be found here. In the last 90 days, insiders have acquired 20,194 shares of company stock valued at $925,981. 5.29% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Insperity

Several institutional investors have recently added to or reduced their stakes in NSP. Private Trust Co. NA lifted its holdings in shares of Insperity by 279.1% during the first quarter. Private Trust Co. NA now owns 326 shares of the business services provider's stock worth $29,000 after purchasing an additional 240 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Insperity during the first quarter worth about $33,000. DekaBank Deutsche Girozentrale acquired a new stake in shares of Insperity during the first quarter worth about $42,000. First Horizon Advisors Inc. lifted its holdings 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 during the period. Finally, Geneos Wealth Management Inc. lifted its holdings 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 during the period. Institutional investors and hedge funds 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.