TriNet stock: buy or sell?

TNET stock price: $65.45 -0.02% At close on September 20th, 2019

Updated on:
September 20th, 2019

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TriNet shares stayed stable -0.02% to $65.45 today. Friday was the third red session in a row, sliding in full a -0.35%.

TriNet Group, Inc. provides human resources solutions for small and midsize businesses in the United States and Canada. The company offers multi-state payroll processing and tax administration; employee benefits programs, including health insurance and retirement plans; workers compensation insurance and claims management; local, state, and federal employment and benefit laws; and other services.

Should I buy TriNet stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Having a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, TriNet stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean TNET will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is TriNet stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 3 ratings published for TNET stock in the last month.

Is TNET a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-13Berenberg Bankn/aBuy
2019-2-15JPMorgan Chase & Co.UnderweightNeutral
2019-2-12William BlairMarket PerformOutperform

TriNet stock analysis

Daily outlook

TriNet ended today at $65.45 and stayed steady a neutral -0.02%.

TriNet ended today at $65.45 and stayed constant a neutral -0.02%. In the last 17 days when TNET stock price broke down the SMA100d line, it slid $-1.68 per share (-2.50%). On July, TNET hit new all time highs, pushing higher previous ATH of $76.90 recorded on July. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

TNET stock chart (daily)

Weekly outlook

TriNet shares stepped up 0.96% this week, ending at $65.45. By mid August TNET plunged a hair-raising -5.53% in just one week.

From a weekly outlook, TNET marked an uptrend of rising tops and rising bottoms. Since its last top late July at $76.92, price slid and bounced up back from $61.68. Breaking down under $61.68 would cancel the current uptrend and it might test lower supports. Note that $76.92 might act as a resistance line. Not so far away is the last all-time high TriNet marked late July, but since then it dropped a 14.91%. Late April, SMA20w and SMA40w crossed up triggering a rise of 9.14%. Since mid February when TNET stock price broke up the SMA40w line, it gained $19.48 (42.38%).

TNET stock chart (weekly)

TriNet stock price history

TriNet IPO was on March 27th, 2014 at $18.50 per share1. Since then, TNET stock surged a 253.80%, with a yearly average of 50.80%. If you had invested right after TNET's IPO a $1,000 in TriNet stock in 2014, it would worth $2,538.00 today.

1: Adjusted price after possible price splits or reverse-splits.

TriNet stock historical price chart

TNET stock reached all-time highs on July with a price of $76.92.

TriNet stock price target is $60.00

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we only found 1 price prediction for TriNet stock:
TNET stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-2-15JPMorgan Chase & Co.Upgrades$53.00$60.0013.2%
(in average)$53.00$60.0013.0%

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, TriNet reported its latest financial data, aligned with analysts' consensus and published a $0.44 Earnings per Share. As soon as we get its posted EPS from the earnings report, we will extend this review.
TNET earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.56n/a
2017-Q32017-11-020.250.56124.0%
2017-Q42018-02-270.470.46-2.1%
2018-Q12018-04-300.550.7129.1%
2018-Q22018-07-300.60.7626.7%
2018-Q32018-10-290.460.6337.0%
2018-Q42019-02-140.430.442.3%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw a more than good growth of 6.96% to $3,503.00 M dollars. On the other hand, its earnings margin (compared to revenues) remained steady to 5.48%, that is $192.00 million.

TNET annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$1,640 M-$3.22 M0.2%-
2014$2,194 M33.75%$15 M0.7%381.27%
2015$2,659 M21.23%$32 M1.2%104.52%
2016$3,060 M15.08%$61 M2.0%93.74%
2017$3,275 M7.02%$178 M5.4%189.87%
2018$3,503 M6.96%$192 M5.5%7.87%

Quarterly financial results

TriNet reported $917.00 million in revenues for 2018-Q4, a 4.80% up compared to previous quarter. Reported quarter income marked $29.00 M with a profit margin of 3.16%. Profit margin depreciated a -2.67% compared to previous quarter when profit margin was 5.83%. When comparing revenues to same quarter last year, TriNet sales marked a remarkable gain and escalated a 8.14%. Looking back to recent quarterly results, TriNet posted 2 negative quarters in a row.
TNET quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$801 M-$40 M5.0%-
2017-Q3$819 M2.34%$43 M5.2%7.22%
2017-Q4$848 M3.50%$66 M7.8%54.08%
2018-Q1$861 M1.53%$54 M6.3%-18.18%
2018-Q2$850 M-1.28%$58 M6.8%7.41%
2018-Q3$875 M2.94%$51 M5.8%-12.07%
2018-Q4$917 M4.80%$29 M3.2%-43.14%
2019-Q1$934 M1.85%$63 M6.7%117.24%

TriNet ownership

When you are planning to buy a company, it's always worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For TriNet, 10.99% of all outstanding shares are owned by its staff.

Bearish positions for TNET stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to TriNet:

TNETADPBBSICBZEFX
Market cap$4.6 B$69.1 B$660.5 M$1.3 B$17.1 B
Total shares69.9 M433.9 M7.5 M54.8 M120.9 M
Float shares40.3 M433.0 M6.7 M51.8 M120.0 M
  - Institutional holdings (%)88.1%81.8%81.4%89.6%88.7%
  - Insider holdings (%)11.0%0.2%4.2%4.4%0.4%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

TriNet summary

Friday, September 20th, 2019
Open$65.49
Close$65.45
Day range$65.14 - $66.18
Previous close$65.46
Session gain-0.02%
Average true range$1.84
50d mov avg$68.64
100d mov avg$67.10
200d mov avg$59.80
Daily patternlt03a
Weekly pattern lb03a

TriNet performance

To measure stock performance is always good to benchmark with competitors or related stocks. In the following table, we compare TriNet performance to Automatic Data Processing, Barrett Business Services, CBIZ, Equifax, Insperity and Paychex:
Stock3m6m12m
TNETTriNet-5.56%10.93%24.19%
ADPAutomatic Data Pr...-4.80%4.58%7.92%
BBSIBarrett Business ...7.38%19.49%40.75%
CBZCBIZ21.01%27.48%1.50%
EFXEquifax5.56%25.78%7.22%
NSPInsperity-19.12%-17.00%-12.63%
PAYXPaychex-3.91%6.78%13.18%

TriNet competitors

One check before investing in any stock is to review a list of its competitors, in this case for TriNet. We picked 6 companies as TriNet competitors as they are in the same industry or have similar market objectives.