Insperity (NYSE:NSP) Shares Gap Up - Should You Buy?

Key Points

• Insperity shares rose 4.1%, opening at $47.48 after closing at $46.42, and last traded near $48.11. The stock remains below its average analyst target of $53.33.
• Analyst sentiment is cautious: one analyst rates Insperity a Buy, two rate it Hold, and two rate it Sell, producing a consensus rating of “Reduce.” Price targets range from $52 to $61.
• Insperity exceeded quarterly expectations with $0.34 in earnings per share versus $0.32 expected and $1.69 billion in revenue versus $1.67 billion forecast. The company also maintains a $0.60 quarterly dividend, equivalent to a 5.0% annual yield, although its payout ratio is deeply negative.

Insperity, Inc. (NYSE:NSP - Get Free Report)'s share price gapped up before the market opened on Wednesday. The stock had previously closed at $46.42, but opened at $47.48. Insperity shares last traded at $48.1060, with a volume of 23,208 shares changing hands.

Wall Street Analyst Weigh In

NSP has been the topic of several analyst reports. Truist Financial set a $52.00 price target on shares of Insperity and gave the company a "hold" rating in a research note on Wednesday, July 22nd. Weiss Ratings raised Insperity from a "sell (d)" rating to a "sell (d+)" rating in a report on Wednesday, July 15th. Robert W. Baird set a $56.00 target price on Insperity in a research report on Friday, July 31st. Roth Capital set a $61.00 price objective on Insperity in a research note on Friday, July 31st. Finally, Zacks Research raised 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 given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Reduce" and a consensus target price of $53.33.

Insperity Trading Up 4.1%

The company has a current ratio of 1.11, a quick ratio of 1.11 and a debt-to-equity ratio of 6.87. The stock has a market cap of $1.85 billion, a price-to-earnings ratio of -112.41 and a beta of 0.54. The company has a fifty day simple moving average of $50.72 and a 200-day simple moving average of $40.79.

Insperity (NYSE:NSP - Get Free Report) last released its earnings results on Wednesday, July 29th. The business services provider reported $0.34 earnings per share for the quarter, topping the consensus estimate of $0.32 by $0.02. The business had revenue of $1.69 billion for the quarter, compared to the consensus estimate of $1.67 billion. Insperity had a negative net margin of 0.23% and a negative return on equity of 19.99%. The firm's quarterly revenue was up 1.7% compared to the same quarter last year. During the same period last year, the firm posted $0.26 earnings per share. Insperity has set its FY 2026 guidance at 1.880-2.430 EPS and its Q3 2026 guidance at -0.090-0.410 EPS. On average, research analysts forecast 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. The ex-dividend date was Wednesday, September 2nd. This represents a $2.40 dividend on an annualized basis and a dividend yield of 5.0%. Insperity's dividend payout ratio is presently -558.14%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of NSP. Reinhart Partners LLC. grew its position in Insperity by 12.1% during the second quarter. Reinhart Partners LLC. now owns 3,304,074 shares of the business services provider's stock valued at $136,492,000 after purchasing an additional 356,365 shares in the last quarter. Quantinno Capital Management LP lifted its position in Insperity by 43.2% in the 1st quarter. Quantinno Capital Management LP now owns 68,101 shares of the business services provider's stock worth $1,841,000 after buying an additional 20,535 shares in the last quarter. Bank of America Corp DE acquired a new stake in shares of Insperity during the 2nd quarter valued at $118,483,000. Lakewood Capital Management LP acquired a new stake in shares of Insperity during the 2nd quarter valued at $6,816,000. Finally, Sovereign s Capital Management LLC increased its stake in shares of Insperity by 45.2% in the fourth quarter. Sovereign s Capital Management LLC now owns 172,444 shares of the business services provider's stock worth $6,677,000 after acquiring an additional 53,656 shares during the last quarter. Hedge funds and other institutional investors own 93.44% of the company's stock.

About Insperity

Insperity, Inc is a provider of human resources and business-performance solutions for small and midsize businesses. Through its professional employer organization (PEO) services, the company helps clients manage payroll, employee benefits, human resources administration, employment-related compliance, and risk management.

The company also offers human capital management technology and related services designed to support payroll processing, recruiting, onboarding, time and attendance, performance management, and employee engagement.

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