Insperity (NYSE:NSP) Shares Climb 6.3% Following Better-Than-Expected Earnings

Shares of Insperity, Inc. (NYSE:NSP) were up 6.3% on Friday after the company announced better than expected quarterly earnings. The company traded as high as $48.93 and last traded at $49.1960. Approximately 384,280 shares traded hands during mid-day trading, a decline of 52% from the average session volume of 806,660 shares. The stock had previously closed at $46.29.

The business services provider reported $0.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.01. Insperity had a negative net margin of 0.23% and a negative return on equity of 19.99%. The firm had revenue of $1.65 billion for the quarter, compared to the consensus estimate of $1.64 billion. During the same quarter last year, the firm posted ($0.20) EPS. The business’s quarterly revenue was up 1.7% compared to the same quarter last year.

Insperity Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 17th. Investors of record on Wednesday, September 2nd were given a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 4.9%. The ex-dividend date was Wednesday, September 2nd. Insperity’s payout ratio is currently -558.14%.

Key Stories Impacting Insperity

Here are the key news stories impacting Insperity this week:

• Positive Sentiment: Q3 adjusted earnings and revenue exceeded expectations. Insperity reported adjusted EPS of $0.22, above the roughly $0.20–$0.21 consensus, while revenue reached $1.651 billion versus estimates of approximately $1.64 billion. Results improved substantially from the prior-year quarter’s $0.20 loss per share. Insperity Q3 earnings report
• Positive Sentiment: Margins and operating efficiency showed progress. Third-quarter gross profit rose 6% to $207 million, gross profit per worksite employee increased 8%, and operating expenses declined 5% to $209 million. Management expects the margin recovery to support fourth-quarter adjusted EBITDA of $24 million to $44 million. Insperity Q4 EBITDA forecast
• Positive Sentiment: Full-year guidance remained supportive. Insperity forecast 2026 adjusted EPS of $1.93 to $2.28 and adjusted EBITDA of $194 million to $214 million. The company also repurchased approximately 131,000 shares for $6 million during the quarter, while CEO Paul Sarvadi has reportedly continued buying shares. Insperity earnings guidance
• Neutral Sentiment: Revenue growth remains modest. Revenue increased about 2% year over year, but average paid worksite employees declined 2% to 307,265. Higher pricing and revenue per employee offset the customer-employee contraction, suggesting that growth is currently dependent more on pricing and productivity than expanding employment levels. Insperity third-quarter results
• Negative Sentiment: GAAP profitability remains weak. Insperity posted a diluted GAAP loss of $0.02 per share and continues to have a negative net margin, even though adjusted earnings were positive. This may limit investor enthusiasm if the anticipated margin recovery does not continue. Why Insperity stock is trading

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the stock. Robert W. Baird set a $56.00 price objective on shares of Insperity in a research note on Friday, July 31st. Truist Financial set a $52.00 price target on Insperity and gave the company a “hold” rating in a research note on Wednesday, July 22nd. Roth Capital set a $61.00 target price on Insperity in a report on Friday, July 31st. Weiss Ratings reiterated a “sell (d+)” rating on shares of Insperity in a research note on Tuesday, October 13th. Finally, Zacks Research raised shares of Insperity from a “strong sell” rating to a “hold” rating in a report on Wednesday, July 29th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Insperity currently has a consensus rating of “Reduce” and a consensus target price of $53.33.

Hedge Funds Weigh In On Insperity

A number of institutional investors have recently modified their holdings of the company. Pinnacle Wealth Planning Services Inc. lifted its position in Insperity by 7.5% in the third quarter. Pinnacle Wealth Planning Services Inc. now owns 2,850 shares of the business services provider’s stock worth $133,000 after purchasing an additional 200 shares during the period. NorthCrest Asset Manangement LLC boosted its stake in Insperity by 4.6% in the 3rd quarter. NorthCrest Asset Manangement LLC now owns 8,844 shares of the business services provider’s stock worth $440,000 after purchasing an additional 385 shares during the period. Hsbc Holdings PLC grew its position in Insperity by 5.4% during the 2nd quarter. Hsbc Holdings PLC now owns 8,131 shares of the business services provider’s stock worth $336,000 after purchasing an additional 416 shares in the last quarter. Public Employees Retirement System of Ohio raised its stake in Insperity by 48.1% during the 1st quarter. Public Employees Retirement System of Ohio now owns 1,299 shares of the business services provider’s stock valued at $35,000 after purchasing an additional 422 shares during the period. Finally, Legacy Wealth Asset Management LLC lifted its holdings in shares of Insperity by 2.8% in the second quarter. Legacy Wealth Asset Management LLC now owns 16,822 shares of the business services provider’s stock valued at $695,000 after purchasing an additional 462 shares in the last quarter. Institutional investors and hedge funds own 93.44% of the company’s stock.

Insperity Price Performance

The company has a market cap of $1.88 billion, a PE ratio of -114.47 and a beta of 0.54. The stock has a fifty day moving average price of $50.20 and a 200-day moving average price of $39.64. The company has a debt-to-equity ratio of 6.87, a current ratio of 1.11 and a quick ratio of 1.11.

Insperity Company Profile

Insperity, Inc provides human resources and business solutions designed primarily for small and midsize companies in the United States. The company operates as a professional employer organization (PEO), helping clients manage employment-related responsibilities while supporting their day-to-day operations.

Its services include payroll and tax administration, employee benefits, workers’ compensation, human resources guidance, regulatory compliance, recruiting and talent management, performance management, and employee training.