TriNet Group (NYSE:TNET) Shares Gap Up After Strong Earnings

TriNet Group, Inc. (NYSE:TNET - Get Free Report)'s share price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $77.58, but opened at $84.43. TriNet Group shares last traded at $81.36, with a volume of 92,475 shares changing hands.

The business services provider reported $1.99 earnings per share for the quarter, topping analysts' consensus estimates of $1.67 by $0.32. TriNet Group had a net margin of 3.46% and a return on equity of 200.82%. The firm had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $319.36 million. During the same period in the prior year, the firm earned $2.18 EPS.

TriNet Group Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, April 28th. Shareholders of record on Tuesday, April 1st were given a $0.275 dividend. This represents a $1.10 annualized dividend and a yield of 1.41%. This is a boost from TriNet Group's previous quarterly dividend of $0.25. The ex-dividend date was Tuesday, April 1st. TriNet Group's payout ratio is 32.84%.

Analysts Set New Price Targets

Several analysts have recently commented on the company. Needham & Company LLC reiterated a "hold" rating on shares of TriNet Group in a report on Thursday, March 13th. TD Cowen lowered shares of TriNet Group from a "buy" rating to a "hold" rating and decreased their price target for the company from $104.00 to $74.00 in a research note on Tuesday, February 18th. Finally, JPMorgan Chase & Co. boosted their price target on shares of TriNet Group from $75.00 to $76.00 and gave the stock an "underweight" rating in a research report on Monday.

Insider Buying and Selling at TriNet Group

In other news, CTO Jeffery Jon Hayward sold 1,364 shares of the business's stock in a transaction dated Tuesday, February 25th. The stock was sold at an average price of $69.36, for a total transaction of $94,607.04. Following the completion of the sale, the chief technology officer now owns 19,867 shares in the company, valued at approximately $1,377,975.12. The trade was a 6.42 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Paul Edward Chamberlain sold 600 shares of the stock in a transaction that occurred on Tuesday, February 25th. The shares were sold at an average price of $69.36, for a total transaction of $41,616.00. Following the completion of the sale, the director now directly owns 36,991 shares of the company's stock, valued at $2,565,695.76. This trade represents a 1.60 % decrease in their position. The disclosure for this sale can be found here. 37.10% of the stock is currently owned by insiders.

Institutional Trading of TriNet Group

Institutional investors and hedge funds have recently modified their holdings of the business. Avion Wealth boosted its stake in TriNet Group by 14.9% during the 4th quarter. Avion Wealth now owns 1,081 shares of the business services provider's stock valued at $98,000 after purchasing an additional 140 shares during the period. Summit Investment Advisors Inc. increased its stake in shares of TriNet Group by 4.7% in the fourth quarter. Summit Investment Advisors Inc. now owns 3,344 shares of the business services provider's stock valued at $304,000 after buying an additional 149 shares in the last quarter. Franklin Resources Inc. boosted its position in TriNet Group by 3.4% in the 3rd quarter. Franklin Resources Inc. now owns 5,086 shares of the business services provider's stock valued at $499,000 after buying an additional 169 shares during the last quarter. Linden Thomas Advisory Services LLC raised its stake in shares of TriNet Group by 2.6% during the fourth quarter. Linden Thomas Advisory Services LLC now owns 7,731 shares of the business services provider's stock worth $702,000 after buying an additional 196 shares during the last quarter. Finally, IFP Advisors Inc grew its position in shares of TriNet Group by 45.5% during the 4th quarter. IFP Advisors Inc now owns 767 shares of the business services provider's stock worth $71,000 after buying an additional 240 shares during the period. 96.81% of the stock is owned by institutional investors and hedge funds.

TriNet Group Price Performance

The firm has a market cap of $3.77 billion, a price-to-earnings ratio of 22.76 and a beta of 1.06. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 13.16. The company has a 50 day moving average of $76.04 and a 200 day moving average of $85.60.

About TriNet Group

TriNet Group, Inc provides comprehensive and flexible human capital management services for small and medium size businesses in the United States. The company offers multi-state payroll processing and tax administration; employee benefits programs, including health insurance and retirement plans; workers compensation insurance and claims management; employment and benefits law compliance; and other HR related services.