CBIZ insider trades: Steven Gerard, Chief Executive Officer of CBIZ, Inc. (NYSE:CBZ), purchased 159 shares of common stock this week at $7.41 per share. The acquisition brought his total holdings up to 911,923 shares, or approximately $6,848,541. Since Gerard’s purchase, CBIZ's stock value has increased by 1.35% and is currently trading at 11.3 times its trailing earnings. Despite the recent rise in share price, the stock is still available at a 60% price discount relative to the industry average. Surprising however, is the fact that CBIZ is trading very near its 52-week high of $7.73 per share.
Gerard has been acquiring small amounts of common stock each month under the amended CBIZ 2007 Employee Stock Purchase Plan, which was approved by Shareholders at the 2011 Annual Meeting. Acquiring stock under this plan allows the Chief Executive Officer to pay 15% for the shares. Later this month, on October 23rd, the firm will be announcing third-quarter results, hosted by Gerard himself. The firm’s third quarter ended on September 30th.
Hedge fund bulls will be glad to see the CEO continues share purchases, even in spite of the small number. As the largest hedge fund shareholder, P2 Capital Partners owns 2,418,265 shares of common stock, or approximately $18,161,170 worth of stock. The CBIZ shares owned by P2 Capital Partners make up 2.6% of the hedge fund’s equity portfolio. Cardinal Capital is the other large hedge fund holding the firm’s stock, with 2,208,701 shares.
Disclosure: Pablo Erbar holds no position in any stocks mentioned