President and COO Of Insperity Makes $508K Sale

It was reported on February 13, that ARTHUR ARIZPE, President and COO at Insperity NSP executed a significant insider sell, according to an SEC filing.

What Happened: ARIZPE's decision to sell 6,000 shares of Insperity was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $508,108.

At Friday morning, Insperity shares are up by 0.61%, trading at $86.8.

Unveiling the Story Behind Insperity

Insperity Inc is a company that provides a wide range of human resources and business solutions designed to help businesses improve their performance. Small and midsize enterprises are the company's primary target customers. Majority of the company's products are offered through the company's Workforce Optimization and Workforce Synchronization solutions, which comprise various human resource functions, such as payroll and employment administration, employee benefits and compensation, government compliance, performance management, training and development services, and human capital management. The company generates all of its revenue in the United States.

Financial Insights: Insperity

Revenue Growth: Insperity's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 0.64%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Holistic Profitability Examination:

• Gross Margin: The company shows a low gross margin of 14.67%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Insperity's EPS is below the industry average. The company faced challenges with a current EPS of 0.07. This suggests a potential decline in earnings.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 3.48, caution is advised due to increased financial risk.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 35.65, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.5, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 13.09, Insperity presents an attractive value opportunity.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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Uncovering the Importance of Insider Activity

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Exploring Key Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Insperity's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.