Insperity (NSP) Upgraded to Buy at Zacks Investment Research

Insperity (NYSE:NSP) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Monday. The firm presently has a $74.00 target price on the business services provider’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 17.37% from the stock’s current price.

According to Zacks, “Insperity reported impressive fourth-quarter 2017 results. Both earnings and revenues increased on a year-over-year basis. The company is benefiting from improved client retention, diversified product portfolio, growth in worksite employees and strength in ancillary products. The company is well poised to benefit from the booming PEO industry driven by improving adoption of Insperity Workforce Optimization as well as Insperity Premier solutions.  Shares have outperformed the industry in the past one year. However, intensifying competition remains a major concern.”

Several other equities research analysts also recently commented on NSP. Roth Capital boosted their target price on Insperity from $58.00 to $71.00 and gave the stock a “buy” rating in a report on Tuesday, February 13th. Robert W. Baird reissued a “buy” rating and issued a $56.00 target price on shares of Insperity in a report on Friday, November 10th. Finally, SunTrust Banks reissued a “hold” rating and issued a $55.00 target price on shares of Insperity in a report on Friday, November 3rd. They noted that the move was a valuation call. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating and three have issued a buy rating to the stock. The stock presently has an average rating of “Hold” and an average price target of $64.00.

Insperity (NSP) traded down $2.75 during midday trading on Monday, hitting $63.05. The company had a trading volume of 245,300 shares, compared to its average volume of 230,136. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 1.57. Insperity has a one year low of $34.88 and a one year high of $65.85. The company has a market capitalization of $2,615.59, a price-to-earnings ratio of 31.68, a PEG ratio of 1.29 and a beta of 0.96.

Insperity (NYSE:NSP) last released its earnings results on Monday, February 12th. The business services provider reported $0.55 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.92 by ($0.37). Insperity had a return on equity of 102.86% and a net margin of 2.55%. The company had revenue of $826.50 million during the quarter, compared to the consensus estimate of $813.28 million. During the same period last year, the firm posted $0.58 earnings per share. The company’s revenue was up 13.4% compared to the same quarter last year. research analysts predict that Insperity will post 2.72 EPS for the current year.

Insperity announced that its board has approved a stock buyback program on Thursday, November 16th that authorizes the company to repurchase 500,000 outstanding shares. This repurchase authorization authorizes the business services provider to repurchase shares of its stock through open market purchases. Shares repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

In other news, Chairman Paul J. Sarvadi sold 45,000 shares of the business’s stock in a transaction on Tuesday, February 13th. The stock was sold at an average price of $61.58, for a total value of $2,771,100.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Jay E. Mincks sold 6,000 shares of the business’s stock in a transaction on Tuesday, February 13th. The stock was sold at an average price of $61.84, for a total value of $371,040.00. The disclosure for this sale can be found here. Insiders sold 56,900 shares of company stock worth $3,830,474 over the last three months. Corporate insiders own 13.92% of the company’s stock.

Several hedge funds have recently bought and sold shares of NSP. Nationwide Fund Advisors raised its stake in shares of Insperity by 12.9% in the second quarter. Nationwide Fund Advisors now owns 10,374 shares of the business services provider’s stock worth $737,000 after purchasing an additional 1,189 shares during the last quarter. New York State Common Retirement Fund increased its position in Insperity by 17.5% during the second quarter. New York State Common Retirement Fund now owns 31,942 shares of the business services provider’s stock valued at $2,268,000 after acquiring an additional 4,761 shares during the last quarter. Northern Trust Corp increased its position in Insperity by 7.3% during the second quarter. Northern Trust Corp now owns 240,679 shares of the business services provider’s stock valued at $17,087,000 after acquiring an additional 16,474 shares during the last quarter. State Street Corp increased its position in Insperity by 9.2% during the second quarter. State Street Corp now owns 440,908 shares of the business services provider’s stock valued at $31,305,000 after acquiring an additional 37,007 shares during the last quarter. Finally, The Manufacturers Life Insurance Company increased its position in Insperity by 16.9% during the second quarter. The Manufacturers Life Insurance Company now owns 14,191 shares of the business services provider’s stock valued at $1,007,000 after acquiring an additional 2,056 shares during the last quarter. Hedge funds and other institutional investors own 65.04% of the company’s stock.

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Insperity Company Profile

Insperity, Inc provides a range of human resources (HR) and business solutions. The Company’s HR services offerings are provided through its Workforce Optimization and Workforce Synchronization solutions (together, its professional employer organization (PEO) HR Outsourcing solutions), which encompass a range of human resources functions, including payroll and employment administration, employee benefits, workers’ compensation, performance management and training and development services, along with its cloud-based human capital management platform, the Employee Service Center (ESC).

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