Insperity (NYSE:NSP) Trading 4% Higher - Time to Buy?

Key Points

• Insperity shares rose 4% to $53.89, though trading volume was about 90% below average. The stock has gained above both its 50-day and 200-day moving averages.
• Quarterly results modestly beat expectations, with EPS of $0.34 versus $0.32 expected and revenue of $1.69 billion versus $1.67 billion expected; revenue increased 1.7% year over year.
• Analyst sentiment remains cautious, with an average “Reduce” rating and a $53.33 price target, while Insperity declared a $0.60 quarterly dividend, equivalent to a 4.4% annualized yield.

Insperity, Inc. (NYSE:NSP - Get Free Report) traded up 4% on Friday . The stock traded as high as $54.08 and last traded at $53.89. Approximately 89,598 shares changed hands during trading, a decline of 90% from the average session volume of 906,420 shares. The stock had previously closed at $51.81.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Truist Financial set a $52.00 target price on Insperity and gave the company a "hold" rating in a report on Wednesday, July 22nd. Weiss Ratings upgraded Insperity from a "sell (d)" rating to a "sell (d+)" rating in a research report on Wednesday, July 15th. Zacks Research raised Insperity from a "strong sell" rating to a "hold" rating in a research note on Wednesday, July 29th. Wall Street Zen upgraded Insperity from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Finally, Roth Capital set a $61.00 target price on Insperity in a research report on Friday, July 31st. 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. Based on data from MarketBeat.com, Insperity presently has an average rating of "Reduce" and an average price target of $53.33.

Insperity Stock Performance

The company has a debt-to-equity ratio of 6.87, a quick ratio of 1.11 and a current ratio of 1.11. The firm has a market cap of $2.06 billion, a P/E ratio of -125.51 and a beta of 0.52. The company's 50 day moving average is $48.11 and its 200 day moving average is $35.69.

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 analysts' expectations of $1.67 billion. Insperity had a negative net margin of 0.23% and a negative return on equity of 19.99%. The company's revenue was up 1.7% on a year-over-year basis. During the same quarter in the previous 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. As a group, equities analysts predict that Insperity, Inc. will post 1.07 earnings per share for the current fiscal year.

Insperity Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Wednesday, September 2nd will be given a dividend of $0.60 per share. The ex-dividend date is Wednesday, September 2nd. This represents a $2.40 dividend on an annualized basis and a yield of 4.4%. Insperity's payout ratio is currently -558.14%.

Insider Transactions at Insperity

In other news, CEO Paul J. Sarvadi bought 233,000 shares of the company's stock in a transaction on Wednesday, June 3rd. The stock was purchased at an average cost of $34.05 per share, for a total transaction of $7,933,650.00. Following the completion of the transaction, the chief executive officer owned 1,105,912 shares of the company's stock, valued at $37,656,303.60. This trade represents a 26.69% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at this link. 5.77% of the stock is currently owned by insiders.

Institutional Trading of Insperity

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Quantinno Capital Management LP increased 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 valued at $1,841,000 after acquiring an additional 20,535 shares during the period. Reinhart Partners LLC. lifted its holdings in shares of Insperity by 12.1% during the second quarter. Reinhart Partners LLC. now owns 3,304,074 shares of the business services provider's stock worth $136,492,000 after purchasing an additional 356,365 shares during the period. Vanguard Group Inc. lifted its holdings in shares of Insperity by 7.3% during the fourth quarter. Vanguard Group Inc. now owns 4,051,372 shares of the business services provider's stock worth $156,869,000 after purchasing an additional 274,198 shares during the period. Royce & Associates LP grew its stake in shares of Insperity by 50.2% in the fourth quarter. Royce & Associates LP now owns 792,834 shares of the business services provider's stock worth $30,699,000 after purchasing an additional 265,041 shares during the last quarter. Finally, Western Standard LLC bought a new stake in shares of Insperity in the fourth quarter worth $8,348,000. 93.44% of the stock is currently owned by institutional investors.

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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