Insperity Inc. (NYSE: NSP) saw its shares gain 5.6% in after-hours trading on Thursday after a regulatory filing revealed a sizable share purchase by Chairman and Chief Executive Officer Paul Sarvadi.
A Form 4 submitted to the Securities and Exchange Commission shows Sarvadi acquired a total of 201,987 shares of Insperity common stock between March 17 and March 19. The filing lists weighted average purchase prices that bring the aggregate cost of those transactions to approximately $4.6 million.
The filing breaks the transactions into purchases made directly by Sarvadi and purchases executed indirectly through an entity where he serves as general partner. On March 17, Sarvadi bought 16,987 shares directly at weighted average prices in a range between $22.53 and $22.98 per share. After completing those direct purchases, the filing indicates he held 474,670 shares directly.
The majority of the shares were acquired through Our Ship Limited Partnership, Ltd., a limited partnership for which Sarvadi is the general partner. According to the Form 4, the partnership bought 160,000 shares on March 18 at a weighted average price of $23.22 per share. On March 19, the partnership added 22,991 shares at a weighted average price of $23.57 per share and 2,009 shares at $23.93 per share.
Following the sequence of trades recorded on the filing, the partnership’s indirect holdings amount to 997,912 shares. Combined with Sarvadi’s direct stake, his total beneficial ownership in Insperity is approximately 1.47 million shares, based on the numbers disclosed in the Form 4.
Market observers commonly interpret insider purchases as a sign of confidence in a company’s prospects, since executives and directors typically have detailed knowledge of corporate operations and near-term outlook. The filing provides the transaction details and the resulting ownership totals but does not include additional commentary or forward-looking statements from Sarvadi or the company.
Summary of transactions reported in Form 4:
- Total shares acquired: 201,987
- Approximate aggregate value: $4.6 million, based on disclosed weighted average prices
- Direct holdings after March 17 purchases: 474,670 shares
- Indirect holdings through Our Ship Limited Partnership after transactions: 997,912 shares
- Total beneficial ownership after all transactions: approximately 1.47 million shares