Quick Win by the Algorithm: Insperity, Inc. (NYSE: NSP) gives hope and inspiration to investors in 2018 by showing 121.51% rise in 3 months

Quick Win by the Algorithm

Insperity, Inc. (NYSE: NSP) provides human resources (HR) and business solutions to enhance business performance for small and medium-sized businesses in the United States. The company offers its HR business services through its Workforce Optimization and Workforce Synchronization solutions, which encompasses a range of human resources functions comprising benefits and payroll administration, health and workers’ compensation insurance programs, personnel records management, employer liability management, assistance with government compliance, general HR advice, employee recruiting and support, employee performance management, and training and development services. It also provides Employee Service Center, a cloud-based human capital management platform that provides automated and personalized professional employer organization HR outsourcing solutions to its clients and worksite employees; and Workforce Administration solution that offers human capital management and payroll services. In addition, Insperity, Inc. offers other business performance solutions consisting of human capital management, payroll services, time and attendance, organizational planning, recruiting services, employment screening, financial and expense management services, retirement services, and insurance services via desktop applications and cloud-based delivery models. The company was formerly known as Administaff, Inc. and changed its name to Insperity, Inc. in March 2011. Insperity, Inc. was founded in 1986 and is headquartered in Kingwood, Texas.

Over the past 3 months Insperity experienced significant fluctuations around the general trend of performing slightly above market performance. The stock price of the company at the start of the forecast period was as low as $52.88 on November 14 which actually served as a “launchpad position” for a new rising trend. Over the last three months company announced a few major events, namely:

  • two-for-one stock split accompanied by a special and quarterly dividends of $2 and $0.30 respectively (November 16, 2017)
  • upcoming retirement of President Richard G. Rawson and appointment of James D. Allison as Senior Vice President of Gross Profit Operations (January 8, 2018)
  • investment of $9 million of tax reform savings in its employees (February 9, 2018)

In the context of the above-mentioned news, one can see that they correspond to significant changes in the stock price behavior and may have significantly contributed to that. As such we see that all three announcement correspond to significant rises in the stock price by some 6-9% comparing to the benchmark indices’ behavior (NYSE and SP500) on the same dates.

[Source: Yahoo Finance]

Finally, the company announced record Q4 and full year 2017 results on February 12 with the following important highlights, reflecting a 2-for-1 stock split being done in Q4:

  • Q4 EPS up 57% to $0.36; adjusted EPS up 90% to $0.55
  • 2017 EPS increased 31% to $2.01; adjusted EPS up 37% to $2.45
  • 2017 net income increased 28% to $84.4 million

In line with the above the market was addresses with the following statement by Douglas S. Sharp, senior vice president of finance, chief financial officer and treasurer: “Our strong cash flow generated from our continued double-digit worksite employee growth and direct cost and operating expense management has allowed us to return just over $300 million to shareholders over the past two years in the form of dividends and share repurchases.”

On November 10, 2017, I Know First issued a bullish 3 month forecast for Insperity Inc. (NYSE: NSP). The forecast illustrated a signal of 122.26 and a predictability of 0.14. In accordance with the forecast, NSP’s stock returned 121.51% over this period, highlighting the accuracy of the prediction produced by the algorithm of I Know First.

Current I Know First subscribers received this bullish NSP forecast on November 10th, 2017

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Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.