Insperity (NYSE:NSP) Issues Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Insperity (NYSE:NSP) released its quarterly earnings data on Wednesday. The business services provider reported $0.34 earnings per share for the quarter, beating analysts’ consensus estimates of $0.32 by $0.02, FiscalAI reports. Insperity had a negative net margin of 0.37% and a negative return on equity of 28.26%. The firm’s quarterly revenue was up 1.7% compared to the same quarter last year. During the same period in the previous year, the business earned $0.26 earnings per share. 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 Price Performance

NYSE NSP traded up $0.63 during mid-day trading on Wednesday, hitting $53.21. The stock had a trading volume of 925,487 shares, compared to its average volume of 598,951. The firm’s 50 day moving average is $40.89 and its 200 day moving average is $34.51. The company has a debt-to-equity ratio of 5.51, a current ratio of 1.09 and a quick ratio of 1.09. The stock has a market capitalization of $2.03 billion, a price-to-earnings ratio of -79.41 and a beta of 0.55. Insperity has a twelve month low of $18.57 and a twelve month high of $61.38.

Insperity Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Thursday, June 4th were paid 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 currently -358.21%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on NSP shares. JPMorgan Chase & Co. dropped their target price on Insperity from $35.00 to $33.00 and set an “underweight” rating on the stock in a research report on Friday, May 1st. Truist Financial set a $52.00 price target on Insperity and gave the stock a “hold” rating in a report on Wednesday, July 22nd. Wall Street Zen upgraded Insperity from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. Zacks Research lowered Insperity from a “hold” rating to a “strong sell” rating in a report on Tuesday, June 30th. Finally, Weiss Ratings raised Insperity from a “sell (d)” rating to a “sell (d+)” rating in a report on Wednesday, July 15th. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Reduce” and an average price target of $48.83.

Insider Transactions at Insperity

In other Insperity news, CEO Paul J. Sarvadi bought 233,000 shares of Insperity stock in a transaction dated Wednesday, June 3rd. The stock was acquired at an average cost of $34.05 per share, for a total transaction of $7,933,650.00. Following the completion of the transaction, the chief executive officer directly owned 1,105,912 shares of the company’s stock, valued at approximately $37,656,303.60. This represents a 26.69% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 5.77% of the stock is currently owned by company insiders.

Institutional Trading of Insperity

Large investors have recently bought and sold shares of the business. Invesco Ltd. lifted its stake in Insperity by 117.8% in the 4th quarter. Invesco Ltd. now owns 1,137,255 shares of the business services provider’s stock worth $44,035,000 after purchasing an additional 615,100 shares in the last quarter. Mercer Global Advisors Inc. ADV acquired a new position in shares of Insperity during the 4th quarter worth approximately $291,000. Vident Advisory LLC purchased a new stake in shares of Insperity in the fourth quarter valued at approximately $891,000. State of Tennessee Department of Treasury grew its position in shares of Insperity by 22.8% in the fourth quarter. State of Tennessee Department of Treasury now owns 7,141 shares of the business services provider’s stock valued at $305,000 after purchasing an additional 1,328 shares in the last quarter. Finally, Mackenzie Financial Corp increased its holdings in shares of Insperity by 357.4% in the fourth quarter. Mackenzie Financial Corp now owns 55,104 shares of the business services provider’s stock valued at $2,143,000 after purchasing an additional 43,058 shares during the last quarter. Hedge funds and other institutional investors own 93.44% of the company’s stock.

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.