CBIZ (NYSE:CBZ) Shares Down 7.7% - Should You Sell?

Key Points

• Shares fell ~7.7% intraday to about $35.32 on Monday, trading on unusually light volume (~35,000 shares vs. an average ~873,567, roughly a 96% drop in activity).
• Analysts are mixed but the consensus is a “Moderate Buy” with a $60.00 average price target (ratings split: 1 Strong Buy, 1 Buy, 1 Hold, 1 Sell; notable reports from Weiss, Deutsche Bank and CJS Securities).
• Insider and institutional positioning is notable: a director sold 8,288 shares (reducing their stake ~18.7%) while the CFO bought 2,060 shares; insiders own ~4.95% and institutions hold ~87.44% of the stock.

CBIZ, Inc. (NYSE:CBZ - Get Free Report) was down 7.7% during mid-day trading on Monday . The stock traded as low as $36.03 and last traded at $35.3150. Approximately 35,082 shares traded hands during trading, a decline of 96% from the average daily volume of 873,567 shares. The stock had previously closed at $38.27.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on CBZ. Weiss Ratings reiterated a "sell (d+)" rating on shares of CBIZ in a research report on Wednesday, January 21st. Deutsche Bank Aktiengesellschaft initiated coverage on CBIZ in a report on Monday, January 12th. They set a "hold" rating and a $60.00 price objective on the stock. Finally, CJS Securities raised CBIZ to a "strong-buy" rating in a report on Thursday, December 11th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $60.00.

CBIZ Stock Down 10.5%

The company has a current ratio of 1.57, a quick ratio of 1.57 and a debt-to-equity ratio of 0.80. The firm has a 50 day moving average price of $48.81 and a 200-day moving average price of $54.42. The firm has a market cap of $1.86 billion, a price-to-earnings ratio of 22.54 and a beta of 0.92.

Insider Activity at CBIZ

In other news, Director Benaree Pratt Wiley sold 8,288 shares of the firm's stock in a transaction that occurred on Tuesday, December 2nd. The shares were sold at an average price of $49.54, for a total transaction of $410,587.52. Following the completion of the transaction, the director directly owned 35,956 shares of the company's stock, valued at $1,781,260.24. This trade represents a 18.73% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Brad S. Lakhia bought 2,060 shares of CBIZ stock in a transaction that occurred on Wednesday, November 26th. The stock was bought at an average cost of $48.51 per share, for a total transaction of $99,930.60. Following the purchase, the chief financial officer owned 40,584 shares in the company, valued at $1,968,729.84. This represents a 5.35% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 4.95% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC raised its position in shares of CBIZ by 6.2% in the first quarter. AQR Capital Management LLC now owns 11,725 shares of the business services provider's stock valued at $889,000 after buying an additional 682 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in CBIZ by 4.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 29,294 shares of the business services provider's stock worth $2,222,000 after acquiring an additional 1,318 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in CBIZ by 5.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 143,270 shares of the business services provider's stock valued at $10,868,000 after acquiring an additional 7,676 shares during the last quarter. Jane Street Group LLC lifted its stake in shares of CBIZ by 96.1% during the 1st quarter. Jane Street Group LLC now owns 41,240 shares of the business services provider's stock worth $3,128,000 after purchasing an additional 20,214 shares during the period. Finally, KLP Kapitalforvaltning AS grew its position in shares of CBIZ by 23.0% in the second quarter. KLP Kapitalforvaltning AS now owns 10,700 shares of the business services provider's stock valued at $767,000 after purchasing an additional 2,000 shares during the period. 87.44% of the stock is currently owned by hedge funds and other institutional investors.

CBIZ Company Profile

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.

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