What Happened?
Shares of HR outsourcing provider Insperity (NYSE: NSP) jumped 3.1% in the afternoon session after a director, Randall Mehl, made a significant purchase of company stock, signaling strong insider confidence.
According to filings, Mehl acquired 3,000 shares valued at approximately $102,380. This move followed a period where the company's stock had hit a 52-week low and its most recent quarterly earnings did not meet analyst expectations. Insider buying, especially after a stock price has fallen, is often viewed by investors as a positive signal. It suggests that company leadership believed the shares were undervalued and felt confident about the firm's future prospects. The purchase was part of a larger pattern of insider activity over the previous year, which involved more insider buys than sells.
After the initial pop the shares cooled down to $33.91, up 3.3% from previous close.
Is now the time to buy Insperity? Access our full analysis report here.
What Is The Market Telling Us
Insperity’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock dropped 13.7% on the news that the company reported a surprise third-quarter loss and significantly lowered its full-year profit forecast.
For the third quarter, Insperity posted an adjusted loss of $0.20 per share, missing Wall Street's expectation for a profit of $0.22 per share. While revenue of $1.62 billion was roughly in line with estimates, the company's profitability fell far short. Adjusted EBITDA, a key measure of operational profit, came in at just $10 million, a 65% miss compared to the $28.56 million consensus estimate. Looking ahead, management slashed its full-year adjusted earnings guidance to a midpoint of $1.16 per share, a 46.5% decrease, signaling that the profitability challenges are expected to persist.
Insperity is down 55.1% since the beginning of the year, and at $33.91 per share, it is trading 64% below its 52-week high of $94.21 from March 2025. Investors who bought $1,000 worth of Insperity’s shares 5 years ago would now be looking at an investment worth $372.39.
The biggest winners—Microsoft, Alphabet, Coca-Cola, Monster Beverage—were all riding powerful megatrends before Wall Street caught on. We’ve just identified an under-the-radar profitable growth stock positioned at the center of the AI boom. Get it FREE here before the crowd discovers it. GO HERE NOW.
