Insperity (NYSE:NSP) Trading Down 13.1% on Analyst Downgrade

Key Points

• Insperity shares plunged 13.1% mid-day after JPMorgan cut its price target to $33 and assigned an underweight rating; the stock traded as low as $31.29 (last $30.92) versus a prior close of $35.57 on sharply reduced volume (125,808 shares, down 89% vs. average).
• Management cut guidance—Q2 EPS was lowered to $0.02–$0.50 (consensus ~$0.42) and FY2026 to $1.60–$2.60 (consensus ~$1.94)—a guidance miss cited as the primary downward catalyst while analysts' average rating sits at "Reduce."
• Despite insider buying (CEO bought 25,000 shares at $23.60; EVP 10,000 at $20.45) and a modest Q1 beat with margin progress, the company still reports weak trailing profitability (negative net margin and ROE) and a high dividend yield of about 8.5%.

Insperity, Inc. (NYSE:NSP - Get Free Report)'s stock price traded down 13.1% during mid-day trading on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $35.00 to $33.00. JPMorgan Chase & Co. currently has an underweight rating on the stock. Insperity traded as low as $31.29 and last traded at $30.9240. 125,808 shares were traded during trading, a decline of 89% from the average session volume of 1,128,885 shares. The stock had previously closed at $35.57.

Several other research analysts have also issued reports on NSP. Weiss Ratings restated a "sell (d)" rating on shares of Insperity in a research report on Friday, March 27th. UBS Group set a $56.00 target price on Insperity in a research report on Wednesday, February 11th. Robert W. Baird set a $36.00 target price on Insperity in a research report on Wednesday, February 11th. Wall Street Zen lowered Insperity from a "hold" rating to a "sell" rating in a research report on Saturday, March 28th. Finally, The Goldman Sachs Group set a $62.00 price objective on shares of Insperity in a report on Monday, January 5th. One investment analyst has rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Reduce" and an average target price of $46.00.

Insider Buying and Selling

In other news, CEO Paul J. Sarvadi purchased 25,000 shares of the stock in a transaction that occurred on Thursday, March 19th. The stock was purchased at an average price of $23.60 per share, for a total transaction of $590,000.00. Following the completion of the acquisition, the chief executive officer owned 997,912 shares of the company's stock, valued at approximately $23,550,723.20. This trade represents a 2.57% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP James D. Allison purchased 10,000 shares of the stock in a transaction that occurred on Tuesday, March 10th. The stock was purchased at an average price of $20.45 per share, with a total value of $204,500.00. Following the acquisition, the executive vice president directly owned 94,272 shares of the company's stock, valued at $1,927,862.40. This trade represents a 11.87% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased 214,437 shares of company stock valued at $4,941,246 in the last quarter. 5.29% of the stock is owned by company insiders.

Insperity News Roundup

Here are the key news stories impacting Insperity this week:

• Positive Sentiment: Q1 results beat modestly — Insperity reported $1.31 EPS versus a Zacks consensus of $1.24 and revenue of $1.90B vs. $1.89B, showing slight top- and bottom-line resilience. Insperity Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Management cited margin progress, which helps offset weaker volume and supports near-term profitability vs. a worse outcome. Insperity: Margin Progress Offsets Softer Volume
• Neutral Sentiment: Full Q1 earnings materials and call transcript are available for investors wanting details on drivers (bookings, client counts, and cost actions). Review the transcript/slide deck if you trade around guidance updates. Insperity Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Analyst stance stayed cautious: William Blair maintained a Hold, noting margin gains but softer volume and trimmed outlook—supporting a neutral view rather than an upgrade. Insperity: Margin Progress Offsets Softer Volume
• Negative Sentiment: Management cut guidance: Q2 EPS was lowered to a range of $0.02–$0.50 (consensus ~$0.42) and FY2026 guidance reduced to $1.60–$2.60 vs. consensus ~$1.94 — the guidance miss/reduction is the primary downward catalyst. Insperity Press Release / Guidance
• Negative Sentiment: Softer worksite employee (WSE) volume and lower client activity were highlighted as growth headwinds — volume weakness reduces revenue runway even as margins improve. Insperity: Margin Progress Offsets Softer Volume
• Negative Sentiment: Company-level profitability metrics remain weak on a trailing basis (negative net margin ~ -0.1% and negative ROE), underscoring execution/one-time issues that may keep longer-term investors cautious.

Institutional Trading of Insperity

A number of large investors have recently modified their holdings of the company. Royce & Associates LP lifted its holdings in Insperity by 27.9% during the third quarter. Royce & Associates LP now owns 527,793 shares of the business services provider's stock worth $25,967,000 after buying an additional 115,165 shares during the period. Earnest Partners LLC lifted its holdings in Insperity by 4.0% during the third quarter. Earnest Partners LLC now owns 1,400,086 shares of the business services provider's stock worth $68,884,000 after buying an additional 53,598 shares during the period. Y Intercept Hong Kong Ltd lifted its holdings in Insperity by 524.0% during the third quarter. Y Intercept Hong Kong Ltd now owns 61,123 shares of the business services provider's stock worth $3,007,000 after buying an additional 51,328 shares during the period. M&T Bank Corp purchased a new stake in Insperity during the fourth quarter worth $3,156,000. Finally, Reinhart Partners LLC. lifted its holdings in Insperity by 23.2% during the third quarter. Reinhart Partners LLC. now owns 2,202,326 shares of the business services provider's stock worth $108,355,000 after buying an additional 415,373 shares during the period. Hedge funds and other institutional investors own 93.44% of the company's stock.

Insperity Stock Performance

The business has a fifty day simple moving average of $26.17 and a two-hundred day simple moving average of $34.57. The company has a debt-to-equity ratio of 8.02, a current ratio of 1.06 and a quick ratio of 1.06. The company has a market cap of $1.08 billion, a PE ratio of -142.68 and a beta of 0.39.

Insperity (NYSE:NSP - Get Free Report) last posted its earnings results on Tuesday, February 10th. The business services provider reported ($0.60) earnings per share for the quarter, missing analysts' consensus estimates of ($0.47) by ($0.13). Insperity had a negative return on equity of 12.09% and a negative net margin of 0.10%.The company had revenue of $1.67 billion for the quarter, compared to analysts' expectations of $1.68 billion. During the same quarter in the prior year, the company earned $0.05 EPS. The firm's quarterly revenue was up 3.4% on a year-over-year basis. Insperity has set its Q1 2026 guidance at 1.030-1.500 EPS and its FY 2026 guidance at 1.690-2.720 EPS. Research analysts anticipate that Insperity, Inc. will post 1.12 earnings per share for the current year.

Insperity Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Stockholders of record on Friday, March 6th were issued a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 8.5%. The ex-dividend date was Friday, March 6th. Insperity's dividend payout ratio is currently -1,200.00%.

About Insperity

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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