Point72 Drastically Cuts Holdings in Insperity Amid Broader Investment Shifts
In a noteworthy move during the second quarter, Point72 Asset Management L.P. significantly slashed its holdings in Insperity, Inc. (NYSE: NSP) by 80.2%, as revealed in the firm’s most recent SEC filing. This divestment involved Point72 reducing its ownership by 150,228 shares, leaving the firm with 37,072 shares valued at $3.38 million, amounting to 0.10% of Insperity’s total shares.
This move by Point72 is part of a broader trend among institutional investors adjusting their positions in Insperity. Quarry LP notably boosted its Insperity shares by 205.6%, reaching ownership of 1,088 shares valued at $99,000. Similarly, The Manufacturers Life Insurance Company made a slight increase of 0.3% in its stake, resulting in 43,075 shares. Meanwhile, Earnest Partners LLC increased its holdings by 2.5%, now owning 1,323,680 shares valued at $120.73 million, and Trinity Legacy Partners LLC raised its position by 0.8%, with a total of 223,398 shares valued at $20.38 million. Additionally, Point72 Hong Kong Ltd initiated a new position valuing $1.49 million. Collectively, these movements have led institutional investors to own a substantial 93.44% of Insperity’s stock.
The trading performance of Insperity’s stock has also been under scrutiny, with a reported decrease of 1.2% in share price to $85.15. The company’s shares have fluctuated between $84.78 and $119.40 over the past 52 weeks, while the market cap stands at $3.21 billion. Insperity’s stock is characterized by a P/E ratio of 20.82, a P/E/G ratio of 2.50, and a beta of 1.12. The firm’s debt-to-equity ratio is at 2.60, with both its current and quick ratios at 1.17. Additionally, the company’s 50-day and 200-day moving averages are $91.84 and $97.24, respectively.
Insperity’s latest earnings report for the quarter ending August 1st provided some encouraging insights. The company reported an EPS of $0.86, which surpassed analysts’ estimates of $0.72 by $0.14. Although revenue came in slightly below the expected $1.62 billion at $1.61 billion, Insperity maintained a net margin of 2.46% and an impressive return on equity of 138.16%. Year-over-year, the company saw revenue growth of 1.3% and an EPS increase from $0.33 in the same period last year.
In a display of strong financial health, Insperity declared a quarterly dividend of $0.60 per share, paid on September 19th, reflecting a 2.82% yield and a dividend payout ratio of 58.68%. This comes alongside significant insider activity, with CEO Paul J. Sarvadi selling 16,123 shares at an average price of $92.23.
Despite these financial metrics, analysts have exhibited a cautious stance towards Insperity. On September 24th, William Blair downgraded Insperity from an “outperform” to “market perform” rating. This downgrade aligns with a more conservative outlook from the analyst community.
In conclusion, Point72’s significant divestment in Insperity is reflective of varied investment strategies among institutional investors and comes amid stable financial performance and strategic insider transactions. With analysts expressing caution and an observed decrease in stock price, investor sentiment appears to be mixed, suggesting a period of prudence towards Insperity’s shares.
