Insperity (NSP) Upgraded to “Buy” by Zacks Investment Research

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Zacks Investment Research upgraded shares of Insperity (NYSE:NSP) from a hold rating to a buy rating in a research report sent to investors on Thursday morning, Zacks.com reports. Zacks Investment Research currently has $133.00 price objective on the business services provider’s stock.

According to Zacks, “Insperity's first-quarter 2019 earnings beat the Zacks Consensus Estimate but revenues lagged the same. The company 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 benefiting 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 its industry year-to-date. 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 major headwind.”

Several other equities research analysts have also weighed in on the company. SunTrust Banks raised Insperity from a hold rating to a buy rating in a research report on Tuesday. Roth Capital raised their target price on Insperity from $134.00 to $143.00 and gave the stock a buy rating in a research report on Tuesday, February 19th. Finally, ValuEngine raised Insperity from a hold rating to a buy rating in a research report on Thursday, January 24th. One investment analyst has rated the stock with a hold rating and five have given a buy rating to the stock. The stock currently has a consensus rating of Buy and a consensus target price of $126.40.

Shares of NYSE NSP traded up $1.45 during midday trading on Thursday, hitting $121.23. 299,652 shares of the company’s stock were exchanged, compared to its average volume of 356,155. The company has a debt-to-equity ratio of 1.21, a quick ratio of 1.12 and a current ratio of 1.15. Insperity has a twelve month low of $80.35 and a twelve month high of $132.50. The firm has a market capitalization of $4.93 billion, a PE ratio of 35.97, a price-to-earnings-growth ratio of 1.63 and a beta of 1.04.

Insperity (NYSE:NSP) last issued its earnings results on Monday, April 29th. The business services provider reported $1.98 earnings per share for the quarter, topping the consensus estimate of $1.88 by $0.10. Insperity had a return on equity of 138.18% and a net margin of 4.06%. The business had revenue of $1.15 billion for the quarter, compared to analyst estimates of $1.16 billion. During the same quarter last year, the company earned $1.41 EPS. The business’s quarterly revenue was up 13.7% on a year-over-year basis. On average, sell-side analysts forecast that Insperity will post 4.08 earnings per share for the current fiscal year.

In other Insperity news, Chairman Paul J. Sarvadi sold 40,000 shares of Insperity stock in a transaction that occurred on Wednesday, May 1st. The stock was sold at an average price of $120.32, for a total transaction of $4,812,800.00. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Jay E. Mincks sold 8,000 shares of Insperity stock in a transaction that occurred on Tuesday, March 5th. The stock was sold at an average price of $124.90, for a total value of $999,200.00. Following the transaction, the executive vice president now directly owns 71,163 shares in the company, valued at approximately $8,888,258.70. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 173,974 shares of company stock worth $21,724,682. 9.58% of the stock is currently owned by corporate insiders.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Advisors Preferred LLC acquired a new position in Insperity during the first quarter worth approximately $26,000. Stevens Capital Management LP increased its position in Insperity by 16.7% during the first quarter. Stevens Capital Management LP now owns 11,210 shares of the business services provider’s stock worth $1,386,000 after buying an additional 1,606 shares during the period. Texas Permanent School Fund increased its position in Insperity by 1.6% during the first quarter. Texas Permanent School Fund now owns 25,295 shares of the business services provider’s stock worth $3,128,000 after buying an additional 397 shares during the period. Comerica Bank increased its position in Insperity by 21.1% during the first quarter. Comerica Bank now owns 30,261 shares of the business services provider’s stock worth $3,875,000 after buying an additional 5,282 shares during the period. Finally, Alps Advisors Inc. acquired a new position in Insperity during the first quarter worth approximately $403,000. 82.01% of the stock is currently owned by institutional investors.

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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