What Happened?
Shares of HR outsourcing provider Insperity (NYSE: NSP) jumped 4.1% in the afternoon session after the company announced a strategic partnership with payments platform Wingspan to launch a new solution for managing independent contractors. The new platform, called "Insperity Contractor Management powered by Wingspan," is designed to help businesses automate the entire lifecycle of engaging with 1099 workers. This includes processes like onboarding, payments, and tax reporting compliance, streamlining what can be a complex administrative burden for companies. This move allows Insperity, traditionally known as a Professional Employer Organization (PEO) that co-employs a client's workforce, to tap into the rapidly growing contingent or "gig" economy. With reports suggesting that one in three American workers now earns 1099 income, the new service addresses a significant market need and represents a potential new revenue stream for the company.
After the initial pop the shares cooled down to $59.39, up 3.7% from previous close.
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What Is The Market Telling Us
Insperity’s shares are somewhat volatile and have had 10 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 biggest move we wrote about over the last year was 3 months ago when the stock dropped 17.2% on the news that the company reported underwhelming first-quarter 2025 results as it lowered its full-year guidance while missing Wall Street's EPS and EBITDA estimates. Sales grew slightly, but operating income tumbled, reflecting margin pressure. Overall, this was a softer quarter.
Insperity is down 21.3% since the beginning of the year, and at $59.39 per share, it is trading 42.4% below its 52-week high of $103.18 from July 2024. Investors who bought $1,000 worth of Insperity’s shares 5 years ago would now be looking at an investment worth $885.49.
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