Stock of the Day

September 4, 2019

Insperity (NSP)

$49.59
+$0.11 (+0.2%)
Market Cap: $1.89B

About Insperity

Insperity, Inc. engages in the provision of human resources (HR) and business solutions to improve business performance for small and medium-sized businesses primarily in the United States. It offers its HR services through its workforce optimization and workforce synchronization solutions that 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. The company also provides Insperity Premier, a cloud-based human capital management platform that offers professional employer organization HR outsourcing solutions to its clients; people management services; and employer liability management services, as well as solutions for middle market. In addition, it offers MarketPlace, an e-commerce portal that offers a range of products and services; and Workforce Acceleration, a human capital management and payroll services solution; integrated payroll; benefits administration; HR administration and employee onboarding; time and attendance; performance management; reporting and analytics; recruiting; employment screening; retirement; and insurance services. The company was formerly known as Administaff, Inc. and changed its name to Insperity, Inc. in March 2011. Insperity, Inc. was founded in 1986 and is headquartered in Kingwood, Texas.

Today's Trend

Insperity, Inc. (NSP) — The stock is trading lower today on mixed Q1 results and weaker forward guidance, plus fresh analyst pressure; volume is above average, suggesting active selling. Below are the key investor-relevant takeaways.

  • Q1 results beat on EPS and roughly met revenue expectations: management reported $1.31 EPS versus a $1.24 consensus and revenue of $1.90B vs ~$1.89B — the beat supports underlying operating performance. Zacks: Q1 EPS & Revenues Top Estimates
  • Revenue growth was modest (year-over-year revenue up ~1.7%) and company materials (earnings slide deck and call transcript) provide details on margin trends and account volumes for those modeling forward quarters. Insperity Q1 Slide Deck Earnings Call Transcript
  • Some analysts view margin progress as offsetting softer staffing volumes, leading to Hold/Neutral stances rather than upgrades — that suggests limited near-term upside from analyst revisions. TipRanks/William Blair: Hold Rating
  • Management cut guidance: Q2 EPS guide 0.020–0.500 (consensus ~0.420) and FY2026 guide 1.600–2.600 (consensus ~1.94). The wider/lower guidance range raises uncertainty about near-term volume and growth, pressuring the stock. MarketBeat: Guidance Update & Q1 Release
  • Analyst downgrade and price-target cut: JPMorgan moved to an "underweight" and trimmed its PT to $33 (noting limited near-term upside), which adds selling pressure from institutional managers. Benzinga: JPMorgan Lowers PT & Rating

Bottom line for investors: Q1 results showed resilience in EPS, but the lower/wide guidance and a notable JPMorgan downgrade are driving the stock decline today. Monitor upcoming commentary on client volumes and margin trajectory and watch for further analyst revisions or insider/large-holder activity if you hold or are considering a position.

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