TriNet Group (NYSE:TNET) Shares Down 13.3% - Should You Sell?

Key Points

• TriNet Group shares fell 13.3% to about $61 during mid-day trading, with volume 74% below the average. The decline pushed the stock below its 50-day moving average of $67.92.
• Analysts maintain a consensus “Hold” rating, with one Buy, five Hold, and one Sell recommendation; the average price target is $56.80, below the latest trading price.
• TriNet exceeded quarterly earnings expectations, reporting $0.94 in EPS versus $0.60 expected, while revenue matched estimates at $1.18 billion but declined 4.6% year over year. The company also pays a quarterly dividend of $0.29, yielding about 1.9%.

TriNet Group, Inc. (NYSE:TNET - Get Free Report)'s stock price was down 13.3% during mid-day trading on Thursday. The company traded as low as $61.51 and last traded at $61.0390. Approximately 110,201 shares traded hands during mid-day trading, a decline of 74% from the average daily volume of 429,394 shares. The stock had previously closed at $70.41.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the stock. Weiss Ratings upgraded shares of TriNet Group from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday, October 9th. JPMorgan Chase & Co. lifted their price target on TriNet Group from $45.00 to $50.00 and gave the stock an "underweight" rating in a research note on Friday, July 31st. Zacks Research lowered TriNet Group from a "strong-buy" rating to a "hold" rating in a report on Friday, July 3rd. Finally, Truist Financial upped their price objective on TriNet Group from $50.00 to $62.00 and gave the company a "hold" rating in a research note on Wednesday, July 22nd. One research analyst has rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $56.80.

TriNet Group Stock Down 12.0%

The stock's fifty day simple moving average is $67.92 and its two-hundred day simple moving average is $53.58. The company has a debt-to-equity ratio of 7.17, a current ratio of 1.13 and a quick ratio of 1.13. The company has a market capitalization of $2.84 billion, a price-to-earnings ratio of 16.57 and a beta of 0.99.

TriNet Group (NYSE:TNET - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The business services provider reported $0.94 EPS for the quarter, beating the consensus estimate of $0.60 by $0.34. The business had revenue of $1.18 billion during the quarter, compared to analyst estimates of $1.18 billion. TriNet Group had a net margin of 3.58% and a return on equity of 227.28%. The company's quarterly revenue was down 4.6% on a year-over-year basis. During the same period in the previous year, the business posted $1.11 EPS. On average, sell-side analysts predict that TriNet Group, Inc. will post 3.87 earnings per share for the current fiscal year.

TriNet Group Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, October 26th. Investors of record on Thursday, October 1st were given a $0.29 dividend. The ex-dividend date was Thursday, October 1st. This represents a $1.16 annualized dividend and a yield of 1.9%. TriNet Group's dividend payout ratio (DPR) is currently 31.02%.

Insider Activity

In other news, Director Wayne Lowell sold 5,773 shares of TriNet Group stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $68.71, for a total transaction of $396,662.83. Following the sale, the director owned 86,449 shares of the company's stock, valued at approximately $5,939,910.79. The trade was a 6.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Paul Chamberlain sold 2,400 shares of the firm's stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $69.70, for a total value of $167,280.00. Following the completion of the sale, the director owned 40,175 shares in the company, valued at approximately $2,800,197.50. This represents a 5.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 10,016 shares of company stock worth $691,600 in the last quarter. Company insiders own 40.00% of the company's stock.

Institutional Trading of TriNet Group

Institutional investors have recently modified their holdings of the company. Fortitude Family Office LLC lifted its holdings in TriNet Group by 473.3% during the 3rd quarter. Fortitude Family Office LLC now owns 602 shares of the business services provider's stock valued at $38,000 after purchasing an additional 497 shares during the last quarter. Sterling Capital Management LLC grew its position in shares of TriNet Group by 851.0% during the 3rd quarter. Sterling Capital Management LLC now owns 932 shares of the business services provider's stock worth $58,000 after buying an additional 834 shares during the period. Essential Partners LLC raised its position in shares of TriNet Group by 427.4% during the 1st quarter. Essential Partners LLC now owns 944 shares of the business services provider's stock valued at $34,000 after acquiring an additional 765 shares during the last quarter. Nykredit A S bought a new position in shares of TriNet Group in the 2nd quarter worth $55,000. Finally, IFP Advisors Inc boosted its position in shares of TriNet Group by 424.3% in the 2nd quarter. IFP Advisors Inc now owns 1,164 shares of the business services provider's stock worth $58,000 after purchasing an additional 942 shares during the last quarter. Institutional investors and hedge funds own 96.81% of the company's stock.

About TriNet Group

TriNet Group, Inc is a professional employer organization (PEO) that provides human resources services to small and midsize businesses in the United States. The company helps clients manage employment-related administrative responsibilities while supporting their workforce and business operations.

TriNet's services include payroll processing, employee benefits, human capital management technology, talent management, risk mitigation, and assistance with employment-related compliance. Its offerings are designed to help businesses handle functions such as onboarding, time and attendance, employee development, and regulatory requirements.

Founded in 1988 by Martin Babinec, TriNet serves businesses across the United States through industry-focused solutions and cloud-based platforms.

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