TriNet Group (NYSE:TNET) Upgraded to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded TriNet Group from “hold” to “strong-buy,” while the broader analyst view remains mixed with a consensus rating of “Hold” and an average price target of $55.20.
• TriNet beat earnings expectations in its latest quarter, reporting $2.48 EPS versus the $1.84 estimate and revenue of $1.23 billion versus $1.08 billion expected, even though revenue fell 5.1% year over year.
• The company authorized a $400 million share buyback, a move that covers up to 18.4% of outstanding shares and signals management may view the stock as undervalued.

TriNet Group (NYSE:TNET - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other analysts also recently commented on the company. Stifel Nicolaus lowered their price objective on TriNet Group from $97.00 to $75.00 and set a "buy" rating for the company in a research note on Friday, February 13th. Weiss Ratings raised TriNet Group from a "sell (d)" rating to a "sell (d+)" rating in a research note on Monday, May 4th. JPMorgan Chase & Co. increased their price objective on TriNet Group from $43.00 to $45.00 and gave the stock an "underweight" rating in a research note on Friday, May 1st. UBS Group lowered their price objective on TriNet Group from $62.00 to $48.00 and set a "neutral" rating for the company in a research note on Tuesday, May 5th. Finally, TD Cowen increased their price objective on TriNet Group from $40.00 to $46.00 and gave the stock a "hold" rating in a research note on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $55.20.

TriNet Group Stock Down 4.5%

Shares of TriNet Group stock opened at $39.61 on Tuesday. TriNet Group has a one year low of $33.60 and a one year high of $86.78. 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's 50-day moving average is $38.64 and its 200 day moving average is $49.76. The firm has a market cap of $1.82 billion, a price-to-earnings ratio of 11.82 and a beta of 1.02.

TriNet Group (NYSE:TNET - Get Free Report) last announced its 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 company had revenue of $1.23 billion for the quarter, compared to analyst estimates of $1.08 billion. TriNet Group had a return on equity of 219.54% and a net margin of 3.22%.The firm's revenue for the quarter was down 5.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.99 EPS. TriNet Group has set its FY 2026 guidance at 3.700-4.700 EPS. Equities research analysts anticipate that TriNet Group will post 3.55 EPS for the current year.

TriNet Group declared that its Board of Directors has authorized a stock buyback plan on Thursday, February 12th that authorizes the company to repurchase $400.00 million in shares. This repurchase authorization authorizes the business services provider to repurchase up to 18.4% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling at TriNet Group

In other news, SVP Sidney A. Majalya sold 775 shares of TriNet Group stock in a transaction 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 transaction, the senior vice president directly owned 55,750 shares in the company, valued at approximately $2,063,865. The trade was a 1.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 40.00% of the company's stock.

Hedge Funds Weigh In On TriNet Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Massachusetts Financial Services Co. MA lifted its stake in TriNet Group by 19.7% during the third quarter. Massachusetts Financial Services Co. MA now owns 2,353,004 shares of the business services provider's stock worth $157,392,000 after purchasing an additional 387,940 shares during the last quarter. Boston Partners bought a new stake in TriNet Group during the third quarter worth about $97,712,000. American Century Companies Inc. lifted its stake in TriNet Group by 14.4% during the third quarter. American Century Companies Inc. now owns 1,327,636 shares of the business services provider's stock worth $88,806,000 after purchasing an additional 167,599 shares during the last quarter. Earnest Partners LLC lifted its stake in TriNet Group by 3.4% during the fourth quarter. Earnest Partners LLC now owns 898,319 shares of the business services provider's stock worth $53,118,000 after purchasing an additional 29,613 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in TriNet Group by 0.6% during the fourth quarter. Dimensional Fund Advisors LP now owns 893,701 shares of the business services provider's stock worth $52,845,000 after purchasing an additional 5,036 shares during the last quarter. 96.81% of the stock is currently owned by hedge funds and other institutional investors.

TriNet Group Company Profile

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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