Insperity (NYSE:NSP) Reaches New 52-Week Low on Disappointing Earnings

Insperity, Inc. (NYSE:NSP) reached a new 52-week low on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $33.00 and last traded at $38.1790, with a volume of 226506 shares changing hands. The stock had previously closed at $45.09.

The business services provider reported ($0.20) EPS for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.42). The business had revenue of $1.62 billion for the quarter, compared to the consensus estimate of $1.63 billion. Insperity had a net margin of 0.60% and a return on equity of 35.32%. The business’s revenue for the quarter was up 4.0% compared to the same quarter last year. During the same quarter last year, the firm posted $0.39 EPS. Insperity has set its FY 2025 guidance at 0.840-1.470 EPS. Q4 2025 guidance at -0.790–0.160 EPS.

Insperity Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 18th. Stockholders of record on Thursday, September 4th were paid a $0.60 dividend. The ex-dividend date was Thursday, September 4th. This represents a $2.40 annualized dividend and a dividend yield of 6.1%. Insperity’s dividend payout ratio is presently 226.42%.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the stock. Zacks Research upgraded shares of Insperity from a “strong sell” rating to a “hold” rating in a research note on Friday, October 3rd. Truist Financial reduced their target price on shares of Insperity from $50.00 to $35.00 and set a “hold” rating for the company in a research note on Tuesday. Roth Capital reiterated a “buy” rating on shares of Insperity in a research note on Tuesday. JPMorgan Chase & Co. reduced their target price on shares of Insperity from $51.00 to $34.00 and set an “underweight” rating for the company in a research note on Tuesday. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Insperity in a research note on Wednesday, October 8th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $47.67.

Insider Transactions at Insperity

In other Insperity news, Director Latha Ramchand purchased 1,000 shares of Insperity stock in a transaction on Wednesday, August 6th. The shares were acquired at an average cost of $50.64 per share, for a total transaction of $50,640.00. Following the completion of the transaction, the director directly owned 15,120 shares of the company’s stock, valued at approximately $765,676.80. The trade was a 7.08% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Paul J. Sarvadi sold 10,850 shares of Insperity stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $51.98, for a total transaction of $563,983.00. Following the completion of the transaction, the chief executive officer directly owned 428,001 shares in the company, valued at approximately $22,247,491.98. The trade was a 2.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 5.29% of the company’s stock.

Institutional Trading of Insperity

Large investors have recently added to or reduced their stakes in the stock. Norges Bank purchased a new position in Insperity during the second quarter valued at $26,960,000. Reinhart Partners LLC. lifted its position in Insperity by 23.2% during the third quarter. Reinhart Partners LLC. now owns 2,202,326 shares of the business services provider’s stock valued at $108,355,000 after buying an additional 415,373 shares during the period. Millennium Management LLC increased its stake in shares of Insperity by 533.8% during the first quarter. Millennium Management LLC now owns 323,875 shares of the business services provider’s stock valued at $28,899,000 after purchasing an additional 272,778 shares in the last quarter. Jacobs Levy Equity Management Inc. increased its stake in shares of Insperity by 40.0% during the first quarter. Jacobs Levy Equity Management Inc. now owns 703,011 shares of the business services provider’s stock valued at $62,730,000 after purchasing an additional 200,685 shares in the last quarter. Finally, Goldman Sachs Group Inc. increased its stake in shares of Insperity by 54.2% during the first quarter. Goldman Sachs Group Inc. now owns 513,785 shares of the business services provider’s stock valued at $45,845,000 after purchasing an additional 180,563 shares in the last quarter. Institutional investors own 93.44% of the company’s stock.

Insperity Stock Down 12.5%

The stock’s 50 day simple moving average is $49.71 and its two-hundred day simple moving average is $57.63. The firm has a market cap of $1.49 billion, a P/E ratio of 37.23 and a beta of 0.46. The company has a debt-to-equity ratio of 3.29, a current ratio of 1.12 and a quick ratio of 1.12.

About Insperity

Insperity, Inc engages in the provision of human resources (HR) and business solutions to improve business performance for small and medium-sized businesses primarily in the United States. It offers its HR services through its workforce optimization and workforce synchronization solutions that include a range of human resources functions, such as payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management, and training and development services.