Insperity (NYSE:NSP) Shares Down 12.5% - Here's What Happened

Key Points

• Insperity shares fell 12.5% to about $45.18, with trading volume far below average. The stock’s decline came despite a modest quarterly earnings and revenue beat.
• Analysts remain cautious, with a consensus rating of “Reduce” and an average price target of $53.33; ratings include one Buy, two Holds, and two Sells.
• Insperity maintains a quarterly dividend of $0.60, or $2.40 annualized, equating to an approximately 5.2% yield, while institutional investors own 93.44% of the shares.

Insperity, Inc. (NYSE:NSP - Get Free Report) was down 12.5% during mid-day trading on Thursday. The stock traded as low as $47.04 and last traded at $45.1820. Approximately 29,201 shares changed hands during trading, a decline of 96% from the average session volume of 805,469 shares. The stock had previously closed at $51.65.

Wall Street Analyst Weigh In

Several analysts have issued reports on NSP shares. Robert W. Baird set a $56.00 price objective on Insperity in a report on Friday, July 31st. Roth Capital set a $61.00 price objective on shares of Insperity in a research report on Friday, July 31st. Weiss Ratings restated a "sell (d+)" rating on shares of Insperity in a research note on Tuesday, October 13th. Truist Financial set a $52.00 price target on shares of Insperity and gave the stock a "hold" rating in a research note on Wednesday, July 22nd. Finally, Zacks Research upgraded Insperity from a "strong sell" rating to a "hold" rating in a research note on Wednesday, July 29th. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Insperity presently has a consensus rating of "Reduce" and a consensus price target of $53.33.

Insperity Stock Down 10.7%

The company has a market capitalization of $1.76 billion, a P/E ratio of -106.87 and a beta of 0.54. The business's fifty day moving average price is $50.31 and its 200 day moving average price is $39.64. The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 6.87.

Insperity (NYSE:NSP - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The business services provider reported $0.22 earnings per share for the quarter, beating analysts' consensus estimates of $0.21 by $0.01. The company had revenue of $1.65 billion for the quarter, compared to the consensus estimate of $1.64 billion. Insperity had a negative return on equity of 19.99% and a negative net margin of 0.23%. The company's quarterly revenue was up 1.7% on a year-over-year basis. During the same period in the previous year, the business earned ($0.20) earnings per share. As a group, equities research analysts predict that Insperity, Inc. will post 1.07 earnings per share for the current fiscal year.

Insperity Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 17th. Stockholders of record on Wednesday, September 2nd were issued a $0.60 dividend. This represents a $2.40 annualized dividend and a dividend yield of 5.2%. The ex-dividend date of this dividend was Wednesday, September 2nd. Insperity's payout ratio is presently -558.14%.

Institutional Investors Weigh In On Insperity

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new position in Insperity during the 2nd quarter worth $229,243,000. Bank of America Corp DE bought a new position in Insperity in the 2nd quarter valued at $118,483,000. Hawk Ridge Capital Management LP acquired a new stake in shares of Insperity in the 1st quarter valued at $39,608,000. Pine Valley Investments Ltd Liability Co acquired a new stake in shares of Insperity in the 1st quarter valued at $12,890,000. Finally, Sei Investments Co. boosted its holdings in Insperity by 47.7% in the first quarter. Sei Investments Co. now owns 1,311,430 shares of the business services provider's stock valued at $35,461,000 after acquiring an additional 423,383 shares during the last quarter. 93.44% of the stock is owned by institutional investors and hedge funds.

About Insperity

Insperity, Inc provides human resources and business solutions designed primarily for small and midsize companies in the United States. The company operates as a professional employer organization (PEO), helping clients manage employment-related responsibilities while supporting their day-to-day operations.

Its services include payroll and tax administration, employee benefits, workers' compensation, human resources guidance, regulatory compliance, recruiting and talent management, performance management, and employee training.

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