CBIZ Board Member Sold $468K In Company Stock

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On March 10, a recent SEC filing unveiled that Benaree Pratt Wiley, Board Member at CBIZ CBZ made an insider sell.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, Wiley sold 6,526 shares of CBIZ. The total transaction value is $468,214.

As of Tuesday morning, CBIZ shares are down by 0.0%, currently priced at $70.16.

Unveiling the Story Behind CBIZ

CBIZ Inc through its subsidiaries provides professional services advisors to middle-market businesses and organizations nationwide. Its business units have been aggregated into three practice groups: Financial Services, Benefits and Insurance Services, and National Practices. The company provides its services to various industries such as Banking & Financial Services, Commercial Real Estate, Construction, Health Care Manufacturing & Distribution NFP & Education, Private Client Services, Professional Services, Public Sector, and Technology & Life Sciences. It derives the majority of its revenues from the Financial Services segment and geographically from the United States.

Breaking Down CBIZ's Financial Performance

Revenue Growth: CBIZ's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 40.52%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Profitability Metrics:

  • Gross Margin: With a low gross margin of -13.45%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

  • Earnings per Share (EPS): CBIZ's EPS is below the industry average. The company faced challenges with a current EPS of -1.807303. This suggests a potential decline in earnings.

Debt Management: CBIZ's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.03.

Market Valuation:

  • Price to Earnings (P/E) Ratio: CBIZ's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 89.95.

  • Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.04, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

  • EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 39.87 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Exploring the Significance of Insider Trading

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Navigating the World of Insider Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of CBIZ's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

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$69.20-1.36%

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