TriNet Group, Inc. (NYSE:TNET) Receives Average Recommendation of "Hold" from Analysts

Key Points

• TriNet Group has a consensus analyst rating of “Hold” from seven brokerages, with an average 12-month price target of $55.20. The ratings mix includes two sells, three holds, one buy, and one strong buy.
• The company reported better-than-expected quarterly results, posting EPS of $2.48 versus the $1.84 estimate and revenue of $1.23 billion versus the $1.08 billion forecast. TriNet also raised its FY 2026 EPS guidance to 3.700-4.700.
• TriNet has been returning capital to shareholders through a $400 million share repurchase program and a higher quarterly dividend of $0.29 per share, up from $0.28. The new dividend implies a 2.7% yield.

TriNet Group, Inc. (NYSE:TNET - Get Free Report) has been given a consensus recommendation of "Hold" by the seven brokerages that are presently covering the stock, MarketBeat reports. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating, one has given a buy rating and one has issued a strong buy rating on the company. The average twelve-month price target among brokers that have covered the stock in the last year is $55.20.

Several research firms have commented on TNET. UBS Group dropped their price objective on shares of TriNet Group from $62.00 to $48.00 and set a "neutral" rating for the company in a research note on Tuesday, May 5th. Stifel Nicolaus dropped their price objective on shares of TriNet Group from $97.00 to $75.00 and set a "buy" rating for the company in a research note on Friday, February 13th. TD Cowen lifted their price objective on shares of TriNet Group from $40.00 to $46.00 and gave the stock a "hold" rating in a research note on Friday, May 1st. Zacks Research raised shares of TriNet Group from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 12th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of TriNet Group from $43.00 to $45.00 and gave the stock an "underweight" rating in a research note on Friday, May 1st.

TriNet Group Trading Up 2.1%

TNET stock opened at $42.71 on Friday. The firm has a fifty day moving average price of $39.25 and a 200 day moving average price of $48.89. TriNet Group has a fifty-two week low of $33.60 and a fifty-two week high of $84.08. The company has a debt-to-equity ratio of 10.80, a quick ratio of 1.12 and a current ratio of 1.12. The firm has a market cap of $1.96 billion, a PE ratio of 12.75 and a beta of 1.02.

TriNet Group (NYSE:TNET - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The business services provider reported $2.48 EPS for the quarter, topping the consensus estimate of $1.84 by $0.64. The company had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.08 billion. TriNet Group had a net margin of 3.22% and a return on equity of 219.54%. TriNet Group's quarterly revenue was down 5.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.99 earnings per share. TriNet Group has set its FY 2026 guidance at 3.700-4.700 EPS. Sell-side analysts anticipate that TriNet Group will post 3.55 earnings per share for the current fiscal year.

TriNet Group announced that its board has authorized a stock repurchase program on Thursday, February 12th that allows the company to buyback $400.00 million in shares. This buyback authorization allows the business services provider to purchase up to 18.4% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its shares are undervalued.

TriNet Group Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, April 27th. Shareholders of record on Wednesday, April 1st were paid a dividend of $0.29 per share. The ex-dividend date of this dividend was Wednesday, April 1st. This is a positive change from TriNet Group's previous quarterly dividend of $0.28. This represents a $1.16 annualized dividend and a yield of 2.7%. TriNet Group's payout ratio is presently 34.63%.

Insider Transactions at TriNet Group

In other TriNet Group news, Director Brian C. Evanko bought 5,000 shares of the firm's stock in a transaction dated Wednesday, March 4th. The stock was acquired at an average cost of $37.70 per share, for a total transaction of $188,500.00. Following the completion of the transaction, the director owned 9,565 shares in the company, valued at $360,600.50. This trade represents a 109.53% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Anthony Shea Treadway sold 933 shares of TriNet Group stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $43.46, for a total value of $40,548.18. Following the sale, the senior vice president owned 67,678 shares of the company's stock, valued at approximately $2,941,285.88. This trade represents a 1.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 40.00% of the company's stock.

Institutional Investors Weigh In On TriNet Group

Institutional investors and hedge funds have recently bought and sold shares of the company. Boston Partners bought a new stake in TriNet Group during the 3rd quarter valued at $97,712,000. American Century Companies Inc. raised its position in TriNet Group by 14.4% during the 3rd quarter. American Century Companies Inc. now owns 1,327,636 shares of the business services provider's stock valued at $88,806,000 after purchasing an additional 167,599 shares in the last quarter. Earnest Partners LLC raised its holdings in shares of TriNet Group by 3.4% in the fourth quarter. Earnest Partners LLC now owns 898,319 shares of the business services provider's stock valued at $53,118,000 after acquiring an additional 29,613 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of TriNet Group by 0.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 893,701 shares of the business services provider's stock valued at $52,845,000 after acquiring an additional 5,036 shares in the last quarter. Finally, ArrowMark Colorado Holdings LLC raised its holdings in shares of TriNet Group by 14.7% in the third quarter. ArrowMark Colorado Holdings LLC now owns 849,863 shares of the business services provider's stock valued at $56,847,000 after acquiring an additional 109,170 shares in the last quarter. 96.81% of the stock is owned by institutional investors.

About TriNet Group

TriNet Group, Inc is a leading professional employer organization (PEO) that offers integrated human capital management solutions to small and medium-size businesses. Through a bundled suite of services, TriNet manages payroll administration, employee benefits, workers' compensation, risk mitigation and federal and state compliance. Its cloud-based platform provides clients with centralized access to HR tools, analytics and streamlined workforce management capabilities.

Founded in 1988 and headquartered in Dublin, California, TriNet has grown to support thousands of organizations across the United States.

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