CBIZ, Inc. (NYSE:CBZ) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts have a consensus “Hold” rating on CBIZ, with five holds and three buys; the average 12-month price target is $44.50.
• Grant Thornton Advisors has agreed to acquire CBIZ for $55 per share in cash, providing a near-term valuation benchmark and potentially taking the company private.
• CBIZ beat quarterly EPS expectations with $0.91 versus $0.72 forecast, but revenue of $682.2 million missed estimates and declined slightly year over year. Law-firm investigations into the deal’s price and sales process could create uncertainty or delay closing.

CBIZ, Inc. (NYSE:CBZ - Get Free Report) has been given a consensus recommendation of "Hold" by the eight analysts that are covering the stock, MarketBeat Ratings reports. Five analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average twelve-month price objective among brokers that have updated their coverage on the stock in the last year is $44.50.

Several research analysts have recently weighed in on the stock. US Capital Advisors set a $55.00 price target on shares of CBIZ in a research report on Thursday. Barrington Research initiated coverage on shares of CBIZ in a research report on Wednesday, June 24th. They set an "outperform" rating and a $45.00 price objective for the company. Stephens set a $37.00 target price on shares of CBIZ in a research note on Friday, May 1st. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $42.00 target price on shares of CBIZ in a report on Thursday, April 30th. Finally, Weiss Ratings raised shares of CBIZ from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday.

Key Headlines Impacting CBIZ

Here are the key news stories impacting CBIZ this week:

• Positive Sentiment: Grant Thornton Advisors will acquire CBIZ in an all-cash transaction at $55 per share, offering shareholders a substantial premium to CBIZ’s pre-announcement price and providing a clear near-term valuation benchmark. The transaction is supported by New Mountain Capital and would take CBIZ private. Grant Thornton Advisors to Acquire CBIZ for $5 Billion
• Positive Sentiment: CBIZ’s latest quarterly results included adjusted earnings of $0.91 per share, well above the $0.72 analyst consensus. The earnings beat, combined with the takeover premium, strengthened investor interest in the stock. CBIZ Shares Gap Up on Better-Than-Expected Earnings
• Neutral Sentiment: Analysts and Zacks highlighted CBIZ’s growth, value and earnings-estimate characteristics, but these research pieces are largely secondary to the acquisition announcement because the $55 cash offer now determines most of the stock’s near-term upside. 3 Reasons Why Growth Investors Shouldn’t Overlook CBIZ
• Negative Sentiment: CBIZ reported quarterly revenue of $682.2 million, below the $698.0 million consensus estimate, while revenue declined slightly year over year and earnings fell from $0.95 per share in the prior-year quarter. These results could limit the stock’s value if the merger is delayed or fails. CBIZ Misses Q2 Revenue Estimates
• Negative Sentiment: Several law firms are investigating whether the $55 offer and the sale process adequately protect shareholders. Such reviews may create deal uncertainty or delay closing, although no wrongdoing has been established. CBIZ Investor Alert

CBIZ Stock Performance

NYSE CBZ opened at $55.16 on Friday. The stock's fifty day moving average is $36.74 and its two-hundred day moving average is $33.72. The firm has a market capitalization of $2.96 billion, a P/E ratio of 25.77, a price-to-earnings-growth ratio of 1.16 and a beta of 0.99. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.63 and a current ratio of 1.63. CBIZ has a fifty-two week low of $24.29 and a fifty-two week high of $76.70.

CBIZ (NYSE:CBZ - Get Free Report) last issued its earnings results on Wednesday, July 29th. The business services provider reported $0.91 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.72 by $0.19. CBIZ had a return on equity of 12.37% and a net margin of 4.73%.The business had revenue of $682.21 million during the quarter, compared to the consensus estimate of $697.96 million. During the same period last year, the company earned $0.95 EPS. The company's revenue for the quarter was down .2% on a year-over-year basis. On average, research analysts anticipate that CBIZ will post 4.1 earnings per share for the current year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Durable Capital Partners LP purchased a new position in CBIZ in the third quarter worth approximately $207,872,000. 22C Capital LLC purchased a new stake in CBIZ in the fourth quarter valued at $161,554,000. Bank of Montreal Can purchased a new stake in CBIZ in the fourth quarter valued at $113,596,000. P2 Capital Partners LLC lifted its stake in shares of CBIZ by 3.3% in the 4th quarter. P2 Capital Partners LLC now owns 1,773,391 shares of the business services provider's stock valued at $89,468,000 after purchasing an additional 57,066 shares during the last quarter. Finally, State Street Corp lifted its stake in shares of CBIZ by 4.6% in the 2nd quarter. State Street Corp now owns 1,210,801 shares of the business services provider's stock valued at $86,827,000 after purchasing an additional 53,099 shares during the last quarter. 87.44% of the stock is currently owned by institutional investors and hedge funds.

About CBIZ

CBIZ, Inc NYSE: CBZ, founded in 1996 and headquartered in Cleveland, Ohio, is a leading provider of professional business services in the United States. Since its inception, the company has grown through both organic expansion and strategic acquisitions to deliver a broad spectrum of financial, tax and advisory solutions tailored to the needs of small to mid-market organizations.

Through its Financial & Advisory Services segment, CBIZ offers accounting, tax preparation and compliance, audit support, and wealth management services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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