TriNet Group (NYSE:TNET) Shares Gap Up - Time to Buy?

Key Points

• TriNet Group shares gapped up at the open, rising from a prior close of $43.10 to an opening price of $46.06 before last trading around $45.73.
• Recent earnings topped expectations, with TriNet reporting $2.48 EPS versus $1.84 expected and revenue of $1.23 billion versus $1.08 billion expected, though revenue was still down 5.1% year over year.
• Analysts are mixed but generally neutral: the stock has a consensus rating of Hold with a consensus price target of $55.20, while recent moves included target increases from TD Cowen and JPMorgan and upgrades from Zacks Research.

TriNet Group, Inc. (NYSE:TNET - Get Free Report) shares gapped up before the market opened on Wednesday . The stock had previously closed at $43.10, but opened at $46.06. TriNet Group shares last traded at $45.73, with a volume of 10,835 shares traded.

Analyst Upgrades and Downgrades

Several brokerages have commented on TNET. TD Cowen upped their target price on shares of TriNet Group from $40.00 to $46.00 and gave the company a "hold" rating in a research report on Friday, May 1st. Zacks Research raised TriNet Group from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 12th. Weiss Ratings upgraded TriNet Group from a "sell (d)" rating to a "sell (d+)" rating in a report on Monday, May 4th. JPMorgan Chase & Co. increased their target price on TriNet Group from $43.00 to $45.00 and gave the company an "underweight" rating in a research note on Friday, May 1st. Finally, UBS Group reduced their target price on TriNet Group from $62.00 to $48.00 and set a "neutral" rating on the stock in a report on Tuesday, May 5th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $55.20.

TriNet Group Price Performance

The company's 50 day simple moving average is $43.15 and its 200 day simple moving average is $47.15. The company has a debt-to-equity ratio of 10.80, a current ratio of 1.12 and a quick ratio of 1.12. The stock has a market cap of $2.10 billion, a P/E ratio of 13.66 and a beta of 1.01.

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

TriNet Group Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, July 27th. Shareholders of record on Wednesday, July 1st will be issued a dividend of $0.29 per share. The ex-dividend date is Wednesday, July 1st. This represents a $1.16 annualized dividend and a yield of 2.5%. TriNet Group's payout ratio is currently 34.63%.

Insider Transactions at TriNet Group

In other news, SVP Sidney A. Majalya sold 775 shares of TriNet Group stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $37.02, for a total transaction of $28,690.50. Following the transaction, the senior vice president owned 55,750 shares in the company, valued at $2,063,865. The trade was a 1.37% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Anthony Shea Treadway sold 933 shares of the business's stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $43.46, for a total value of $40,548.18. Following the completion of the transaction, the senior vice president owned 67,678 shares of the company's stock, valued at $2,941,285.88. This 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. 40.00% of the stock is currently owned by insiders.

Institutional Trading of TriNet Group

Several hedge funds have recently bought and sold shares of TNET. Quarry LP boosted its holdings in shares of TriNet Group by 524.7% in the third quarter. Quarry LP now owns 456 shares of the business services provider's stock valued at $31,000 after buying an additional 383 shares during the period. Aster Capital Management DIFC Ltd acquired a new stake in shares of TriNet Group during the fourth quarter worth $28,000. Caitong International Asset Management Co. Ltd raised its holdings in shares of TriNet Group by 160.3% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 479 shares of the business services provider's stock worth $28,000 after acquiring an additional 295 shares during the period. Mirae Asset Global Investments Co. Ltd. lifted its position in TriNet Group by 45.2% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 646 shares of the business services provider's stock valued at $38,000 after acquiring an additional 201 shares in the last quarter. Finally, Essential Partners LLC lifted its position in TriNet Group by 427.4% in 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 in the last quarter. 96.81% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.