Why Shares Of Insperity Were Trading Higher Wednesday Morning

Shares of Insperity Inc NSP were trading higher in Wednesday's pre-market session after activist investor Starboard Value reported a 13.2 percent ownership stake in the company after Tuesday's market close. Shares of Insperity recently traded at $38.55, up 6 percent in the premarket. Starboard Value maintains a position that shares are “deeply undervalued and a number of opportunities exist to create significant shareholder value.” The investment firm states that it has already conducted an “extensive amount of research” into the company and the industry and that underperformance in its shares is due to a combination of poor execution, lax cost management and poor capital allocation. Starboard Value plans to engage the company's management team to unlock value by improving execution, reducing operating expenses, improving capital allocation, improve corporate governance and explore alternatives. By doing so, Starboard Value estimates shares should be valued at $53.84 to $64.80 in the near-term and could be worth “far more” over time.