Have Insiders Sold CBIZ Shares Recently?

Some CBIZ, Inc. (NYSE:CBZ) shareholders may be a little concerned to see that the Senior VP & CFO, Ware Grove, recently sold a substantial US$644k worth of stock at a price of US$79.11 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.7%.

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The Last 12 Months Of Insider Transactions At CBIZ

In fact, the recent sale by Ware Grove was the biggest sale of CBIZ shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$79.60). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 2.7% of Ware Grove's holding.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of CBIZ

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. CBIZ insiders own 5.0% of the company, currently worth about US$201m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The CBIZ Insider Transactions Indicate?

Unfortunately, there has been more insider selling of CBIZ stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - CBIZ has 1 warning sign we think you should be aware of.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.