TriNet (TNET)

• Market cap: $4.65B
• 1 day: 3.72%
• 5 days: 2.45%
• 1 month: 4.53%
• 3 months: 2.71%
• 6 months: -13.91%
• Year to date: 4.73%
• 1 year: -19.40%
• 5 years: 63.24%
• 10 years: 187.78%
• Sector: Industrials
• Industry: Business Services

About: TriNet offers outsourced payroll and human capital management solutions for small and midsize businesses via a professional employer organization model. Under the PEO model, TriNet enters a co-employment arrangement and acts as the employer of record for administrative and regulatory purposes for clients' employees, known as worksite employees. Clients leverage the scale and expertise of TriNet to access competitive employee benefits, share employment risk liability, access compliance support, and outsource mission-critical day-to-day HR functions such as payroll and tax administration. Following the acquisition of Zenefits and Clarus R+D in 2022, TriNet derives the minority of its revenue from self-service HCM software and R&D tax credit services.

Employees: 5,400

Fund manager confidence

Based on 2024 Q3 regulatory filings by fund managers ($100M+ AUM)

50% more funds holding in top 10

Funds holding in top 10: 2 [Q2] → 3 (+1) [Q3]

1.01% more ownership

Funds ownership: 91.19% [Q2] → 92.2% (+1.01%) [Q3]

2% less capital invested

Capital invested by funds: $4.61B [Q2] → $4.52B (-$86.9M) [Q3]

3% less first-time investments, than exits

New positions opened: 34 | Existing positions closed: 35

4% less repeat investments, than reductions

Existing positions increased: 94 | Existing positions reduced: 98

2% less funds holding

Funds holding: 265 [Q2] → 261 (-4) [Q3]

39% less call options, than puts

Call options by funds: $2.62M | Put options by funds: $4.32M

Research analyst outlook

3 Wall Street Analysts provided 1 year price targets over the past 3 months

• Low target: $103 10% upside
• Avg. target: $116 23% upside
• High target: $140 49% upside

3 analyst ratings

• positive: 1 33%
• neutral: 1 33%
• negative: 1 33%

TD Cowen Jared Levine 56% 1-year accuracy 5 / 9 met price target	11% upside $104	Buy Maintained	20 Nov 2024
Needham Kyle Peterson 57% 1-year accuracy 35 / 61 met price target	49% upside $140	Hold Downgraded	28 Oct 2024
JP Morgan Tien-Tsin Huang 69% 1-year accuracy 70 / 102 met price target	10% upside $103	Underweight Assumed	22 Oct 2024