CBIZ continues share buyback, authorizes 5 million shares

CBIZ, Inc. (NYSE:CBZ), a provider of professional business services currently valued at $4.36 billion, has announced the extension of its Share Repurchase Program, as confirmed on Tuesday. The Board of Directors has authorized the repurchase of up to 5 million shares, with the program now set to expire on March 31, 2026. According to InvestingPro data, the company’s stock is trading near its 52-week high of $89.25, reflecting strong market confidence.

This decision marks a continuation of the company’s long-standing policy of annually renewing its buyback initiative for over two decades. Under the Share Repurchase Program, CBIZ can buy back shares on the open market, through private transactions, or via Rule 10b5-1 trading plans, which permit stock purchases even when typical trading activities are restricted by regulatory constraints. The company’s financial position appears solid, with InvestingPro analysis showing a healthy current ratio of 1.49 and moderate debt levels.

The program includes potential transactions with employees, officers, directors, and notably, former partners of Marcum LLP, from whom the company may repurchase shares. This is contingent on the shares being part of the consideration for CBIZ’s recent acquisition of Marcum LLP, and if the former partners intend to sell their shares within four years of the acquisition’s closing.

CBIZ has stated that the program does not compel the company to purchase a specific number of shares and may be suspended at any time. The company’s Board views the Share Repurchase Program as a sensible investment of its financial resources, believing that buying back its own stock is an efficient way to deliver value to its shareholders.

Funding for the share repurchases, along with any associated fees and expenses, is expected to come from the company’s operating cash flow and potential borrowing under its credit facility. The continuation of the Share Repurchase Program reflects CBIZ’s confidence in its financial stability and commitment to shareholder returns. This confidence appears well-founded, as InvestingPro data reveals the company has delivered an impressive 32.46% return over the past year. Investors seeking deeper insights into CBIZ’s valuation and growth prospects can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.