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Stadium Capital Buys Insperity Amid Stock Plunge
1 Dec
Summary
- Stadium Capital Management initiated a new position in Insperity.
- The new position represents 263,715 shares valued at $13 million.
- Insperity's stock has fallen 55% over the past year.
Connecticut-based Stadium Capital Management has established a new position in Insperity (NSP), reporting ownership of 263,715 shares valued at approximately $13 million as of September 30. This investment constituted 13.9% of the fund's total reportable U.S. equity assets at the close of the third quarter, signaling a notable allocation.
Insperity, a provider of HR outsourcing and payroll solutions, has seen its stock price decline by 55% over the past year. This underperformance is largely attributed to rising healthcare costs impacting its margins. However, a newly secured multi-year contract with UnitedHealthcare, effective in 2026, is anticipated to significantly mitigate large-claim cost exposures.
This strategic investment by Stadium Capital suggests confidence in Insperity's potential for operational recovery. Despite a recent net loss and reduced adjusted EBITDA due to elevated costs, the company's management highlighted progress in cost control and the anticipated benefits of the UnitedHealthcare agreement, positioning the stock as a potential opportunity for value investors.
