Edgestream Partners L.P. Takes $3.61 Million Position in CBIZ, Inc. $CBZ

Key Points

• Edgestream Partners acquired 134,491 CBIZ shares worth approximately $3.61 million, while institutional investors and hedge funds collectively own 87.44% of the company.
• Grant Thornton Advisors agreed to acquire CBIZ in an all-cash deal at $55 per share, implying a near-term valuation benchmark and potential privatization of the company.
• CBIZ beat quarterly earnings expectations with $0.91 in EPS versus $0.72 forecast, but revenue of $682.2 million missed estimates and declined slightly year over year.

Edgestream Partners L.P. acquired a new position in shares of CBIZ, Inc. (NYSE:CBZ - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm acquired 134,491 shares of the business services provider's stock, valued at approximately $3,611,000. Edgestream Partners L.P. owned 0.25% of CBIZ as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also made changes to their positions in the company. Durable Capital Partners LP acquired a new position in CBIZ in the third quarter worth about $207,872,000. 22C Capital LLC bought a new position in CBIZ during the fourth quarter worth about $161,554,000. Bank of Montreal Can acquired a new stake in CBIZ during the fourth quarter valued at approximately $113,596,000. Royce & Associates LP boosted its holdings in CBIZ by 389.3% during the fourth quarter. Royce & Associates LP now owns 659,140 shares of the business services provider's stock valued at $33,254,000 after purchasing an additional 524,438 shares in the last quarter. Finally, Citadel Advisors LLC grew its stake in shares of CBIZ by 253.6% in the 3rd quarter. Citadel Advisors LLC now owns 623,060 shares of the business services provider's stock valued at $32,997,000 after purchasing an additional 446,876 shares during the period. 87.44% of the stock is currently owned by institutional investors and hedge funds.

CBIZ Stock Down 0.2%

Shares of NYSE CBZ opened at $55.16 on Friday. The firm's 50-day simple moving average is $36.74 and its 200 day simple moving average is $33.72. The company has a market cap of $2.96 billion, a price-to-earnings ratio of 25.77, a price-to-earnings-growth ratio of 1.16 and a beta of 0.99. The company has a quick ratio of 1.63, a current ratio of 1.63 and a debt-to-equity ratio of 0.77. CBIZ, Inc. has a 12-month low of $24.29 and a 12-month high of $76.70.

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

Key Stories 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

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Stephens set a $37.00 target price on CBIZ in a report on Friday, May 1st. US Capital Advisors set a $55.00 price target on CBIZ in a research note on Thursday. Barrington Research assumed coverage on CBIZ in a research report on Wednesday, June 24th. They issued an "outperform" rating and a $45.00 price target on the stock. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $42.00 price objective on shares of CBIZ in a research note on Thursday, April 30th. Finally, Weiss Ratings raised CBIZ from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday. Three equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, CBIZ currently has a consensus rating of "Hold" and a consensus price target of $44.50.

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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