Insperity (NSP) Stock Rating Lowered by Zacks Investment Research

Zacks Investment Research lowered shares of Insperity (NYSE:NSP) from a strong-buy rating to a hold rating in a report published on Monday, Zacks.com reports.

According to Zacks, “Insperity is well poised to benefit from the booming professional employer organization industry, driven by growth opportunities arising from Workforce Administration and Workforce Optimization solutions. The company’s top-line is being benefited from rise in average number of worksite employees paid per month. The company has been consistent in rewarding its shareholders through dividend payments and share repurchases. Shares of Insperity have outperformed the industry in the past year. On the flip side, the company’s operation in a highly fragmented and competitive PEO industry remains a concern. The company’s earnings are highly seasonal in nature due to changing trends in medical claims costs and payroll taxes. Rising expenses is another risk.”

Other analysts also recently issued reports about the stock. ValuEngine upgraded shares of Insperity from a hold rating to a buy rating in a report on Thursday, January 24th. Roth Capital boosted their target price on shares of Insperity from $134.00 to $143.00 and gave the stock a buy rating in a report on Tuesday, February 19th. Finally, SunTrust Banks boosted their target price on shares of Insperity to $129.00 and gave the stock a hold rating in a report on Tuesday, February 12th. Three equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. The stock presently has an average rating of Buy and a consensus price target of $123.80.

Shares of NYSE NSP opened at $128.86 on Monday. The company has a debt-to-equity ratio of 1.86, a quick ratio of 1.12 and a current ratio of 1.12. The firm has a market capitalization of $5.30 billion, a price-to-earnings ratio of 38.24, a P/E/G ratio of 1.76 and a beta of 1.09. Insperity has a 52-week low of $71.90 and a 52-week high of $132.50.

Insperity (NYSE:NSP) last announced its quarterly earnings results on Monday, February 11th. The business services provider reported $0.69 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.65 by $0.04. The company had revenue of $966.80 million for the quarter, compared to the consensus estimate of $959.22 million. Insperity had a net margin of 3.52% and a return on equity of 126.19%. Insperity’s revenue for the quarter was up 17.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.55 EPS. On average, equities analysts forecast that Insperity will post 4.08 earnings per share for the current year.

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 28th. Stockholders of record on Thursday, March 14th were issued a $0.30 dividend. The ex-dividend date was Wednesday, March 13th. This is an increase from Insperity’s previous quarterly dividend of $0.20. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.93%. Insperity’s payout ratio is 35.61%.

In other news, EVP Arthur A. Arizpe sold 8,000 shares of the business’s stock in a transaction dated Friday, April 5th. The shares were sold at an average price of $130.00, for a total value of $1,040,000.00. Following the sale, the executive vice president now directly owns 42,633 shares in the company, valued at approximately $5,542,290. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Richard G. Rawson sold 55,834 shares of the business’s stock in a transaction dated Thursday, February 14th. The stock was sold at an average price of $125.07, for a total transaction of $6,983,158.38. Following the completion of the sale, the director now owns 105,919 shares in the company, valued at $13,247,289.33. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 133,974 shares of company stock worth $16,911,882. Insiders own 9.58% of the company’s stock.

A number of large investors have recently modified their holdings of NSP. Brasada Capital Management LP bought a new position in Insperity during the 4th quarter valued at about $29,000. Ffcm LLC bought a new position in Insperity during the 4th quarter valued at about $34,000. Bremer Trust National Association bought a new position in Insperity during the 4th quarter valued at about $48,000. Quantamental Technologies LLC bought a new position in Insperity during the 4th quarter valued at about $65,000. Finally, Meeder Asset Management Inc. bought a new position in Insperity during the 4th quarter valued at about $97,000. Institutional investors own 82.77% of the company’s stock.

About Insperity

Insperity, Inc provides human resources (HR) and business solutions to enhance business performance for small and medium-sized businesses in the United States. The company offers its HR services through its Workforce Optimization and Workforce Synchronization solutions, which 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.

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