New York State Common Retirement Fund Trims CBIZ Holdings Amid Market Volatility
Publication Date: August 7, 2023
In a strategic move responding to the fluctuations in the financial market, the renowned institutional investor, New York State Common Retirement Fund (NYSCRF), has made significant adjustments to its holdings by reducing its stake in CBIZ, Inc. (NYSE: CBZ) during the first quarter of 2023. The details of this maneuver were disclosed in the most recent Form 13F filing with the Securities & Exchange Commission.
The NYSCRF reported that it divested approximately 12.3% of its shares in CBIZ, aggregating a total reduction of 10,898 shares from their previous portfolio. As a result, the state’s pension fund now retains ownership of 77,896 shares of CBIZ stock at an evaluated worth of $3,855,000 as per the end of the reporting period.
CBIZ, Inc., widely recognized for its expertise in providing comprehensive financial services and insurance solutions, operates through different segments including Financial Services, Benefits and Insurance Services, National Practices, and Corporate and Other. Within these sectors lies an array of specialized consultancy services encompassing accounting, taxation advisory support, government healthcare consulting assistance, financial advisory services for businesses across various industries and sizes alongside valuation and risk advisory solutions.
Following NYSCRF’s announcement on reducing CBIZ holdings amid market-driven decision-making factors such as returns expectations or portfolio balancing needs evidently highlights their calculated assessment regarding short-term performance factors surrounding this particular investment. Acknowledging that investing comes with inherent risks especially during times characterized by volatility is fundamental when making informed decisions like curbing potential exposure to uncertain trends.
Despite this adjustment within NYSCRF’s portfolio composition involving CBIZ stocks being reduced temporarily due to prevailing circumstances prevalent in early 2023 market conditions; it is essential not to lose sight of key investment considerations. The firm’s performance over the past year has demonstrated a 12-month low level of $42.23 and a 12-month high level of $55.28, with an opening of $54.54 on August 7, 2023.
Examining CBIZ’s price trajectory through its fifty-day moving average price standing at $53.24 and the two hundred-day moving average price at $50.74 provides insight into longer-term market trends, giving investors a broader perspective for future implications.
The market capitalization of CBIZ currently stands at an impressive $2.72 billion, amplifying its position as a significant player in this sector. Furthermore, the company displays financial strength with a favorable P/E ratio of 24.03 and a beta coefficient measuring market risk exposure at 0.76—symbolizing modest volatility compared to the overall market trends.
It is worth highlighting that CBIZ exhibits commendable liquidity ratios with a current ratio and quick ratio both standing at 1.37, indicating their ability to meet short-term obligations efficiently even amidst potential economic uncertainties traversing various industries.
CBIZ holds proven resilience within its financial structure concerning debt management; boasting an enviable debt-to-equity ratio of 0.53 translating into minimal reliance on borrowed funds for growth aspirations or meeting operational demands.
As NYSCRF meticulously adjusts their investment strategy by curtailing positions in certain securities, it is essential to respect their decision-making processes founded upon insightful analyses amidst complex economic variables constantly experienced in today’s markets.
Consequently, while the reduction in CBIZ holdings by NYSCRF may appear perplexing initially due to limited information provided within the available public domain regarding the specific motivations behind this action, it is crucial to remember that investing involves intricate factors beyond immediate comprehension.
Overall, recognizing NYSCRF’s calculated maneuvering within their formidable portfolio serves as an engaging reminder for industry observers and investors alike about employing diverse strategies forged through meticulous analysis and decision-making. Consequently, effective investment management is grounded in prudent evaluations encompassing a wide array of factors and the ability to adapt to ever-changing market dynamics.
CBIZ, Inc.
CBZ
Buy
Updated on: 07/08/2023
CBIZ, Inc.: Strong Investor Confidence and Mixed Financial Results Shape Future Outlook
CBIZ, Inc. is a renowned company that specializes in providing financial, insurance, and advisory services. The firm operates through various segments including Financial Services, Benefits and Insurance Services, National Practices, and Corporate and Other. With such a diverse range of offerings, CBIZ has established itself as a prominent player in the industry.
In recent news, several large investors have made significant modifications to their holdings of CBIZ stock. Federated Hermes Inc., for instance, has increased its position by an impressive 56.4% during the third quarter. As a result of this move, Federated Hermes now owns 1,117 shares of CBIZ valued at $48,000.
Similarly, Advisor Group Holdings Inc. also significantly lifted its holdings in CBIZ by 127.1% during the fourth quarter. They now possess 1,206 shares worth $57,000 after acquiring an additional 675 shares.
The trend continued with Money Concepts Capital Corp buying a new stake in CBIZ worth approximately $65,000 during the fourth quarter as well. Macquarie Group Ltd. also got involved by lifting its holdings by an astounding 113.6% during the second quarter.
Lastly, Ridgewood Investments LLC chose to invest in CBIZ during the first quarter by purchasing a new position worth $92,000.
These moves by various institutional investors showcase their confidence in CBIZ’s potential for growth and success in the market.
Moving on to another development related to CBIZ; StockNews.com initiated coverage on shares of CBIZ with a “hold” rating on Thursday May 18th.
Switching gears to financial figures now; On Thursday July 27th , it was announced that CBIZ had reported earnings per share (EPS) of $0.55 for the quarter which happened to miss analysts’ consensus estimates of $0.68 by ($0.13). Nevertheless, despite this shortfall in expectations, CBIZ demonstrated a net margin of 7.67% and a return on equity of 15.52%.
The firm’s quarterly revenue stood at $398.50 million in relation to the analysts’ projected revenue of $392.37 million. It is also noteworthy that CBIZ experienced a 10.1% year-over-year increase in revenue for the same quarter last year.
For the current year, equities research analysts anticipate that CBIZ will post an impressive 2.4 earnings per share highlighting their confidence in the company’s future prospects.
In other notable news, insider Ware H. Grove sold off 20,000 shares of CBIZ stock on Wednesday August 2nd at an average price of $54.55 per share amounting to a total transaction value of $1,091,000. Following this sale, Grove holds 274,524 shares valued at approximately $14,975,284.20.
Similar to this action by Ware H.Grove was another sale by him as an insider on that very same day which saw him dispose off another 20,000 shares at an average price of $54.55 for a total transaction worth $1,091,000.Currently Groove owns about 274,524 shares.
Apart from these transactions by Ware H.Grove , Director Joseph S.Dimartino also sold off 5,000 shares of CBIZ stock on Monday June the fifth at an average share price of $52.35 resulting in a total transaction value of $261750.Following completion he now has around about 15999 shares.
Overall insiders have sold a combined total of about 44,873 shares valued at around about $2million over the past quarter.CBIZ insiders currently own a considerable portion with holdings standing at approximately5%.
These recent developments provide us with valuable insights into the activities surrounding CBIZ and its progress in the market.On one hand, the actions of large investors reflect their confidence in CBIZ’s potential for growth in the industry. On the other hand, the mixed bag of financial results and insider sales highlights both challenges and opportunities that lie ahead for CBIZ.
Investors and market analysts will be closely monitoring future developments at CBIZ to gauge its performance in the coming months.
