Victory Capital Management Inc. has recently made an interesting revelation in its most recent filing with the SEC. The institutional investor has boosted its stake in TriNet Group, Inc. (NYSE:TNET) by an astounding 65.8% in the fourth quarter of last year. According to the filing, Victory Capital Management Inc. now owns 10,875 shares of TNET after acquiring additional 4,315 shares during this period. This increased stake was estimated to be worth $821,000 at the end of Q4.
This news comes on the heels of TriNet Group’s impressive earnings report which it posted last month on Wednesday, April 26th. The business services provider wowed investors when it reported $2.35 earnings per share (EPS) for Q1, beating analysts’ consensus estimates of $1.77 EPS by a whopping $0.58. The company had a net margin of 6.96% and showcased a return on equity (ROE) of 47.82%. Additionally, TriNet Group recorded revenue of $394 million compared to analysts’ predictions of $364.55 million – once again surpassing expectations.
TriNet Group specializes in providing human capital management (HCM) solutions to small and mid-sized businesses that require HR expertise and benefit options, payroll services, risk mitigation and access to a cutting-edge technology platform. The company has been operational since 1988 and is headquartered in Dublin, California.
These moves signal promising times ahead for TriNet Group and investors should take note of these activities as they will likely impact not just Victory Capital Management but also other institutional investors who may look to follow suit in their future dealings with TNET stock itself; especially with even more positive growth prospects expected going into the rest of this year and beyond!
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TriNet Group, Inc.: Leading the Way in HCM Solutions for Small and Mid-sized Businesses While Facing Insider Sell-offs and Mixed Analyst Ratings
TriNet Group, Inc. is making waves in the small and mid-sized business market with their human capital management (HCM) solutions such as HR expertise, benefit options, payroll services and risk mitigation. The company provides this through its technology platform, increasing efficiency for businesses who use their solutions. In Q4 of 2020, Dimensional Fund Advisors LP increased its holdings in TriNet Group by 4.7%, Principal Financial Group Inc. increased theirs by 109.8% and UBS Group AG grew its holdings in shares of TriNet Group by 32.1%. California Public Employees Retirement System also grew its holdings by 1.5% during the same period and hedge funds along with other institutional investors currently own approximately 91.65% of the company’s stock.
The financials of this business services provider are impressive as well – NYSE TNET opened at $94.53 on Monday with a market capitalization of $5.62 billion while having a P/E ratio of 17:13 – reflecting strong earnings growth in recent years.
Despite all this success, insiders have been selling their stocks over the past few months which may raise questions about their confidence in the company’s future prospects.
Several equity research analysts have recently issued reports on TNET shares with one upgrading them from “hold” to “buy”. While two have issued a buy rating and three placed a hold rating on the stock, Bloomberg.com shows that there is consensus among analysts for a “Hold” rating with a target price averaging out at $88.
Founded in California by Martin Babinec in 1988 with headquarters still located there today, it’s clear that TriNet Group will continue to be a major player in HCM solutions for small businesses based on impressive financials and support from institutional investors despite insider selling.