Insperity (NSP): Valuation in Focus After Earnings Miss, Guidance Cut, and Legal Investigation

Insperity (NSP) has landed squarely in the market spotlight after a string of tough headlines. The company reported disappointing second-quarter earnings, missed estimates, and quickly followed it up by cutting its full-year forecast, blaming higher benefits and pharmacy costs. If that was not enough to shake investor confidence, a legal investigation, launched by Bragar Eagel & Squire, P.C. for possible violations of federal securities laws, added another layer of uncertainty and sent shares tumbling. This bout of negative news comes on the heels of a multi-quarter slide for Insperity. Shares have retreated more than 36% over the past year, with momentum clearly fading further in recent months as the company’s downward revision and legal scrutiny took center stage. Even looking back three and five years, the stock remains well below previous highs, painting a picture of sustained underperformance rather than a short-term dip. Given how much optimism has evaporated from Insperity’s share price, could this period of stress reveal hidden value, or is the market simply catching up to deeper weaknesses and fresh risks?

Most Popular Narrative: 7.4% Undervalued

The latest consensus narrative points to Insperity trading below fair value. Analysts view the current share price as offering a discount based on long-term earnings prospects and margin expansion potential.

The upcoming launch of Insperity HRScale, a joint solution with Workday, targets a broader and more lucrative mid-market segment. By leveraging both advanced HR technology and comprehensive services, this initiative is expected to drive higher revenue growth and improved operating leverage. Premium pricing and larger average client size become possible as a result.

Curious how analysts arrived at this optimistic valuation? The secret lies in aggressive forecasts around revenue recovery, margin improvement, and one especially bold profit assumption. Want to uncover which ambitious numbers are baked into this fair value calculation? The answers could reshape your outlook on Insperity’s future.

Result: Fair Value of $57.75 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent rises in healthcare costs and challenges in executing the Workday partnership could quickly undermine this bullish outlook for Insperity.

Find out about the key risks to this Insperity narrative.

Another View: Market-Based Comparison

While analyst forecasts suggest Insperity could be undervalued, a market-based lens paints a more skeptical picture. Compared to the industry, the company’s current share price looks expensive. Which lens truly reflects reality?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Insperity to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Insperity Narrative

If you want to check the numbers for yourself or have your own interpretation, you can build your personal narrative in just a few minutes. Do it your way.

A great starting point for your Insperity research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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