Insperity (NYSE:NSP) Shares Gap Down - Time to Sell?

Key Points

• Insperity shares fell 4%, opening at $49.60 versus a prior close of $51.79, and were last trading near $50.72.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating and a $53.33 price target, with ratings split among Buy, Hold, and Sell.
• The company modestly beat quarterly earnings and revenue estimates, while maintaining a $0.60 quarterly dividend equivalent to a 4.8% yield; institutional investors own 93.44% of the shares.

Insperity, Inc. (NYSE:NSP - Get Free Report) gapped down before the market opened on Wednesday. The stock had previously closed at $51.79, but opened at $49.60. Insperity shares last traded at $50.7150, with a volume of 17,058 shares changing hands.

Analysts Set New Price Targets

Several research firms have recently weighed in on NSP. Roth Capital set a $61.00 target price on shares of Insperity in a research note on Friday, July 31st. Robert W. Baird set a $56.00 price target on shares of Insperity in a research note on Friday, July 31st. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Insperity in a report on Tuesday, October 13th. Zacks Research raised shares of Insperity from a "strong sell" rating to a "hold" rating in a report on Wednesday, July 29th. Finally, Truist Financial set a $52.00 price target on Insperity and gave the stock a "hold" rating in a report on Wednesday, July 22nd. One equities 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. According to data from MarketBeat.com, Insperity has a consensus rating of "Reduce" and a consensus price target of $53.33.

Insperity Stock Down 4.0%

The business's 50-day moving average price is $50.32 and its 200 day moving average price is $39.60. The company has a market capitalization of $1.90 billion, a P/E ratio of -116.18 and a beta of 0.54.

Insperity (NYSE:NSP - Get Free Report) last posted its earnings results on Wednesday, July 29th. The business services provider reported $0.34 earnings per share for the quarter, topping analysts' consensus estimates of $0.32 by $0.02. The firm had revenue of $1.69 billion for the quarter, compared to the consensus estimate of $1.67 billion. During the same period last year, the company posted $0.26 EPS. The business's revenue was up 1.7% on a year-over-year basis. Analysts anticipate that Insperity, Inc. will post 1.07 EPS for the current fiscal year.

Insperity Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, September 17th. Stockholders of record on Wednesday, September 2nd were issued a $0.60 dividend. The ex-dividend date of this dividend was Wednesday, September 2nd. This represents a $2.40 annualized dividend and a dividend yield of 4.8%. Insperity's dividend payout ratio is presently -558.14%.

Institutional Investors Weigh In On Insperity

Institutional investors and hedge funds have recently made changes to their positions in the business. BlackRock Inc. purchased a new position in Insperity during the second quarter worth about $229,243,000. Bank of America Corp DE bought a new stake in shares of Insperity during the 2nd quarter valued at about $118,483,000. Hawk Ridge Capital Management LP bought a new stake in shares of Insperity during the 1st quarter valued at about $39,608,000. Pine Valley Investments Ltd Liability Co bought a new stake in shares of Insperity during the 1st quarter valued at about $12,890,000. Finally, Sei Investments Co. boosted its position in shares of Insperity by 47.7% during the 1st 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. Hedge funds and other institutional investors own 93.44% of the company's stock.

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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