Insperity (NYSE:NSP) Trading 4.9% Higher - Should You Buy?

Key Points

• Insperity shares rose 4.9% in midday trading to around $35.78, though volume was far below average, with only about 27,243 shares traded versus a daily average of over 1 million.
• Recent analyst sentiment remains cautious: the stock now carries an average "Reduce" rating and a $46 average price target, with mixed actions including upgrades to hold but also underweight and sell ratings.
• The company reported quarterly EPS of $1.31, topping estimates, and it pays a $0.60 quarterly dividend that annualizes to a 6.6% yield; CEO Paul J. Sarvadi also bought 233,000 shares in June.

Insperity, Inc. (NYSE:NSP - Get Free Report)'s stock price shot up 4.9% during mid-day trading on Tuesday . The company traded as high as $35.81 and last traded at $35.78. Approximately 27,243 shares changed hands during trading, a decline of 97% from the average daily volume of 1,034,067 shares. The stock had previously closed at $34.11.

Analyst Upgrades and Downgrades

NSP has been the topic of a number of recent research reports. Wall Street Zen raised Insperity from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. JPMorgan Chase & Co. reduced 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. Roth Mkm set a $54.00 price target on Insperity in a research report on Friday, May 1st. Weiss Ratings reissued a "sell (d)" rating on shares of Insperity in a report on Friday, March 27th. Finally, Zacks Research upgraded shares of Insperity from a "strong sell" rating to a "hold" rating in a research report on Monday, April 13th. One 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 stock. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average target price of $46.00.

Insperity Price Performance

The firm has a market capitalization of $1.39 billion, a P/E ratio of -54.41 and a beta of 0.59. 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 business has a 50 day simple moving average of $32.78 and a two-hundred day simple moving average of $33.09.

Insperity (NYSE:NSP - Get Free Report) last issued 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 firm had revenue of $1.90 billion during the quarter, compared to the consensus estimate of $1.89 billion. During the same quarter last year, the company 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. On average, sell-side analysts expect that Insperity, Inc. will post 0.99 EPS for the current fiscal year.

Insperity Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Thursday, June 4th were given a dividend of $0.60 per share. The ex-dividend date was Thursday, June 4th. This represents a $2.40 annualized dividend and a yield of 6.6%. Insperity's payout ratio is presently -358.21%.

Insider Buying and Selling

In related news, CEO Paul J. Sarvadi purchased 233,000 shares of the business's stock in a transaction on Wednesday, June 3rd. The stock was 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 approximately $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 Securities & Exchange Commission, which is available through this link. 5.77% of the stock is currently owned by corporate insiders.

Institutional Trading of Insperity

Hedge funds have recently made changes to their positions in the stock. Public Employees Retirement System of Ohio increased its stake in 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 acquiring an additional 422 shares during the last quarter. Signaturefd LLC lifted its stake in Insperity by 363.3% during the fourth quarter. Signaturefd LLC now owns 959 shares of the business services provider's stock worth $37,000 after purchasing an additional 752 shares during the last quarter. Farther Finance Advisors LLC increased its position in shares of Insperity by 871.6% during the 4th quarter. Farther Finance Advisors LLC now owns 991 shares of the business services provider's stock valued at $38,000 after purchasing an additional 889 shares during the last quarter. Aster Capital Management DIFC Ltd bought a new position in shares of Insperity during the 3rd quarter valued at about $41,000. Finally, Allworth Financial LP raised its stake in shares of Insperity by 845.3% during the fourth quarter. Allworth Financial LP now owns 1,106 shares of the business services provider's stock worth $43,000 after acquiring an additional 989 shares in 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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