TriNet Group (NYSE:TNET) Stock Crosses Above 50 Day Moving Average - What's Next?

Key Points

• TriNet Group shares rose above their 50-day moving average, trading as high as $47.33 and last changing hands at about $46.59. The stock’s 50-day average was $41.08, suggesting recent momentum in the shares.
• Analyst views remain mixed, with recent target changes ranging from UBS cutting its price target to $48 to Zacks upgrading the stock to Strong Buy. MarketBeat data shows an overall consensus rating of Hold and an average target price of $55.20.
• The company delivered a strong earnings beat and increased its dividend, reporting Q1 EPS of $2.48 versus estimates of $1.84 and revenue of $1.23 billion versus $1.08 billion expected. TriNet also raised its quarterly dividend to $0.29 per share and maintains a $400 million share repurchase authorization.

TriNet Group, Inc. (NYSE:TNET - Get Free Report) shares passed above its 50 day moving average during trading on Monday . The stock has a 50 day moving average of $41.08 and traded as high as $47.33. TriNet Group shares last traded at $46.5880, with a volume of 229,409 shares.

Analysts Set New Price Targets

TNET has been the subject of several research analyst reports. Weiss Ratings raised shares of TriNet Group from a "sell (d)" rating to a "sell (d+)" rating in a research report on Monday, May 4th. UBS Group dropped their target price on shares of TriNet Group from $62.00 to $48.00 and set a "neutral" rating for the company in a research report on Tuesday, May 5th. TD Cowen boosted their target price on shares of TriNet Group from $40.00 to $46.00 and gave the stock a "hold" rating in a research report on Friday, May 1st. Zacks Research raised shares of TriNet Group from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 12th. Finally, JPMorgan Chase & Co. boosted their target price on shares of TriNet Group from $43.00 to $45.00 and gave the stock an "underweight" rating in a research report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, TriNet Group presently has an average rating of "Hold" and a consensus target price of $55.20.

TriNet Group Price Performance

The company's fifty day moving average price is $41.08 and its 200 day moving average price is $48.02. 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 capitalization of $2.14 billion, a price-to-earnings ratio of 13.91 and a beta of 1.01.

TriNet Group (NYSE:TNET - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The business services provider reported $2.48 EPS for the quarter, beating the consensus estimate of $1.84 by $0.64. The business 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%. The company's quarterly revenue was down 5.1% on a year-over-year basis. During the same period in the previous year, the business posted $1.99 EPS. TriNet Group has set its FY 2026 guidance at 3.700-4.700 EPS. Equities research analysts expect that TriNet Group, Inc. will post 3.55 earnings per share for the current year.

TriNet Group Increases Dividend

The company also recently announced 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. This represents a $1.16 dividend on an annualized basis and a yield of 2.5%. 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. TriNet Group's dividend payout ratio (DPR) is presently 34.63%.

TriNet Group declared that its board has initiated a share repurchase plan on Thursday, February 12th that permits the company to buyback $400.00 million in shares. This buyback authorization permits the business services provider to purchase up to 18.4% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's leadership believes its stock is undervalued.

Insider Transactions at TriNet Group

In other TriNet Group news, SVP Sidney A. Majalya sold 775 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $37.02, for a total value of $28,690.50. Following the completion of the sale, the senior vice president directly owned 55,750 shares in the company, valued at $2,063,865. This represents a 1.37% decrease in their ownership of the stock. 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 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 completion of the sale, the senior vice president directly owned 67,678 shares in the company, valued at $2,941,285.88. This represents a 1.36% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 40.00% of the company's stock.

Institutional Investors Weigh In On TriNet Group

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd raised its holdings in shares of TriNet Group by 160.3% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 479 shares of the business services provider's stock worth $28,000 after purchasing an additional 295 shares in the last quarter. Aster Capital Management DIFC Ltd acquired a new stake in TriNet Group during the fourth quarter valued at approximately $28,000. Quarry LP boosted its holdings in TriNet Group by 524.7% during the third quarter. Quarry LP now owns 456 shares of the business services provider's stock worth $31,000 after buying an additional 383 shares in the last quarter. Essential Partners LLC grew its position in TriNet Group by 427.4% in the first quarter. Essential Partners LLC now owns 944 shares of the business services provider's stock worth $34,000 after buying an additional 765 shares during the last quarter. Finally, Cache Advisors LLC acquired a new position in TriNet Group in the first quarter worth approximately $36,000. 96.81% of the stock is 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.

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