Insperity (NYSE:NSP) Posts Earnings Results, Beats Estimates By $0.02 EPS

Insperity (NYSE:NSP) released its quarterly earnings results on Wednesday. The business services provider reported $0.34 EPS for the quarter, topping the consensus estimate of $0.32 by $0.02, FiscalAI reports. Insperity had a negative return on equity of 28.26% and a negative net margin of 0.37%.During the same period last year, the business posted $0.26 earnings per share. The company’s quarterly revenue was up 1.7% on a year-over-year basis. Insperity updated its FY 2026 guidance to 1.880-2.430 EPS and its Q3 2026 guidance to -0.090-0.410 EPS.

Here are the key takeaways from Insperity’s conference call:

• Q2 results exceeded expectations, with adjusted EPS of $0.34 and adjusted EBITDA of $36 million, up 31% and 13% year over year, respectively, supported by pricing actions and operating expense reductions.
• Average paid worksite employees declined 1.1% year over year to 305,764, and full-year guidance now calls for a 1%–1.6% decrease, indicating that sales and retention remain pressured by the margin recovery initiative.
• Insperity raised its full-year outlook to adjusted EBITDA of $185 million–$225 million and adjusted EPS of $1.88–$2.43, representing growth of 41%–72% and 83%–136%, respectively, although the company maintained a wide range because of healthcare cost uncertainty.
• Insperity HRScale launched with nearly 8,000 worksite employees sold, including more than 5,000 already live, while management said the Workday-based platform could expand the addressable market and eventually deliver profitability at least comparable to HR360.
• The company is increasing marketing, sales staffing, agency offerings, and AI capabilities to support the fall selling season, but elevated healthcare cost trends and rising workers’ compensation claim severity remain risks to second-half results.

Insperity Stock Performance

NYSE:NSP traded up $0.63 during mid-day trading on Wednesday, hitting $53.21. The company’s stock had a trading volume of 925,487 shares, compared to its average volume of 598,951. The business’s fifty day moving average is $40.89 and its two-hundred day moving average is $34.51. The stock has a market cap of $2.03 billion, a price-to-earnings ratio of -79.41 and a beta of 0.55. The company has a debt-to-equity ratio of 5.51, a current ratio of 1.09 and a quick ratio of 1.09. Insperity has a 1 year low of $18.57 and a 1 year high of $61.38.

Insperity Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Thursday, June 4th were issued a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 4.5%. The ex-dividend date of this dividend was Thursday, June 4th. Insperity’s dividend payout ratio is presently -358.21%.

Insider Buying and Selling at Insperity

In related news, CEO Paul J. Sarvadi acquired 233,000 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The stock was acquired at an average price of $34.05 per share, with a total value of $7,933,650.00. Following the acquisition, the chief executive officer directly owned 1,105,912 shares in the company, valued at $37,656,303.60. This represents a 26.69% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 5.77% of the company’s stock.

Institutional Trading of Insperity

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Geneos Wealth Management Inc. lifted its holdings in Insperity by 32.2% in the first quarter. Geneos Wealth Management Inc. now owns 747 shares of the business services provider’s stock valued at $67,000 after acquiring an additional 182 shares during the period. Caitong International Asset Management Co. Ltd boosted its position in Insperity by 75.9% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 964 shares of the business services provider’s stock worth $47,000 after purchasing an additional 416 shares in the last quarter. Lazard Asset Management LLC grew its stake in shares of Insperity by 7.7% during the 3rd quarter. Lazard Asset Management LLC now owns 6,029 shares of the business services provider’s stock worth $297,000 after purchasing an additional 431 shares during the period. UMB Bank n.a. grew its stake in shares of Insperity by 62.9% during the 4th quarter. UMB Bank n.a. now owns 1,427 shares of the business services provider’s stock worth $55,000 after purchasing an additional 551 shares during the period. Finally, Comerica Bank increased its holdings in shares of Insperity by 3.4% during the 3rd quarter. Comerica Bank now owns 19,593 shares of the business services provider’s stock valued at $964,000 after purchasing an additional 637 shares in the last quarter. 93.44% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Roth Capital set a $54.00 target price on shares of Insperity in a report on Friday, May 1st. JPMorgan Chase & Co. cut their price objective on shares of Insperity from $35.00 to $33.00 and set an “underweight” rating on the stock in a research report on Friday, May 1st. Weiss Ratings upgraded shares of Insperity from a “sell (d)” rating to a “sell (d+)” rating in a research note on Wednesday, July 15th. Truist Financial set a $52.00 target price on shares of Insperity and gave the company a “hold” rating in a research note on Wednesday, July 22nd. Finally, Zacks Research cut Insperity from a “hold” rating to a “strong sell” rating in a research note on Tuesday, June 30th. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, Insperity presently has a consensus rating of “Reduce” and an average target price of $48.83.

Insperity Company Profile

Insperity, Inc is a leading provider of human resources and business performance solutions designed to help small and midsize businesses operate more efficiently. Headquartered in Kingwood, Texas, the company offers a comprehensive suite of products and services that span workforce management, payroll administration, employee benefits, risk management, and talent development. By leveraging its proprietary technology platform and team of HR experts, Insperity enables clients to focus on core business objectives while outsourcing complex administrative functions.

The company’s flagship offering is its Professional Employer Organization (PEO) service, which allows clients to outsource critical HR tasks such as payroll processing, workers’ compensation administration, and compliance with employment regulations.