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

Key Points

• TriNet Group's stock price gapped up from $65.72 to $68.77 after the company reported quarterly earnings of $1.15 per share, exceeding analysts' expectations of $1.03.
• The company declared a quarterly dividend of $0.275 per share, with an annualized yield of 1.61%, payable to investors on July 28th.
• JPMorgan Chase & Co. raised their target price for TriNet Group from $75.00 to $76.00 while maintaining an "underweight" rating on the stock.
• Insiders have recently sold shares, with CTO Jeffery Jon Hayward selling 1,437 shares at an average price of $82.04, indicating a 4.18% decrease in his position.

TriNet Group, Inc. (NYSE:TNET - Get Free Report) gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $65.72, but opened at $68.77. TriNet Group shares last traded at $67.98, with a volume of 138,165 shares trading hands.

The business services provider reported $1.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.03 by $0.12. TriNet Group had a net margin of 2.85% and a return on equity of 220.32%. The business had revenue of $282.90 million for the quarter, compared to the consensus estimate of $278.93 million. During the same period in the previous year, the firm earned $1.53 EPS.

TriNet Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, July 28th. Investors of record on Tuesday, July 1st were paid a dividend of $0.275 per share. The ex-dividend date of this dividend was Tuesday, July 1st. This represents a $1.10 dividend on an annualized basis and a dividend yield of 1.57%. TriNet Group's payout ratio is currently 37.80%.

Analyst Upgrades and Downgrades

Separately, JPMorgan Chase & Co. reduced their price objective on TriNet Group from $76.00 to $75.00 and set an "underweight" rating for the company in a research note on Monday.

Insider Activity

In other TriNet Group news, SVP Sidney A. Majalya sold 500 shares of the company's stock in a transaction that occurred on Wednesday, May 21st. The stock was sold at an average price of $83.14, for a total value of $41,570.00. Following the transaction, the senior vice president directly owned 23,033 shares of the company's stock, valued at $1,914,963.62. This represents a 2.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CTO Jeffery Jon Hayward sold 1,437 shares of TriNet Group stock in a transaction on Tuesday, May 27th. The stock was sold at an average price of $82.04, for a total transaction of $117,891.48. Following the completion of the transaction, the chief technology officer directly owned 32,932 shares of the company's stock, valued at approximately $2,701,741.28. This represents a 4.18% decrease in their position. The disclosure for this sale can be found here. Insiders sold 2,120 shares of company stock worth $175,291 over the last three months. 37.10% of the stock is currently owned by corporate insiders.

Institutional Trading of TriNet Group

A number of hedge funds and other institutional investors have recently made changes to their positions in TNET. Summit Investment Advisors Inc. grew its holdings in shares of TriNet Group by 4.7% during 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. Xponance Inc. grew its position in TriNet Group by 6.4% in the first quarter. Xponance Inc. now owns 2,613 shares of the business services provider's stock worth $207,000 after acquiring an additional 157 shares in the last quarter. Verdence Capital Advisors LLC increased its holdings in shares of TriNet Group by 3.0% during the 2nd quarter. Verdence Capital Advisors LLC now owns 6,481 shares of the business services provider's stock valued at $474,000 after acquiring an additional 188 shares during the last quarter. Farther Finance Advisors LLC raised its position in shares of TriNet Group by 7.0% in the second quarter. Farther Finance Advisors LLC now owns 4,456 shares of the business services provider's stock valued at $326,000 after purchasing an additional 291 shares during the period. Finally, US Bancorp DE lifted its position in TriNet Group by 4.6% during the 1st quarter. US Bancorp DE now owns 7,534 shares of the business services provider's stock worth $597,000 after acquiring an additional 332 shares during the last quarter. 96.81% of the stock is currently owned by institutional investors.

TriNet Group Stock Performance

The firm has a 50 day moving average of $75.12 and a two-hundred day moving average of $78.94. The stock has a market cap of $3.40 billion, a P/E ratio of 24.12 and a beta of 0.84. The company has a debt-to-equity ratio of 14.43, a quick ratio of 1.08 and a current ratio of 1.08.

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.