Granite Sells $15 Million in CBIZ Amid Stock’s 40% Slide Since February

Granite Investment Partners disclosed on Monday that it sold 137,812 shares of CBZ, reducing its position by an estimated $15.4 million.

What Happened

According to an SEC filing released on Monday, Granite Investment Partners reduced its position in CBIZ (NYSE:CBZ) by 137,812 shares during the third quarter. The post-trade holding stands at 296,177 shares worth $15.7 million as of quarter-end. The position now accounts for 0.9% of the fund's reportable assets under management.

What Else to Know

Top holdings after the filing:

• NASDAQ:MSFT: $74.96 million (4.26% of AUM)
• NASDAQ:GOOGL: $50.23 million (2.85% of AUM)
• NASDAQ:AAPL: $48.55 million (2.76% of AUM)
• NASDAQ:NVDA: $46.12 million (2.62% of AUM)
• NASDAQ:AMZN: $40.43 million (2.29% of AUM)

As of Tuesday, shares of CBZ were priced at $52.45, down 33% over the past year and far underperforming the S&P 500, which is up 14%.

Company Overview

Company Snapshot

CBIZ is a leading provider of professional services, offering a diversified suite of financial, insurance, and advisory solutions. The company provides accounting, tax, financial advisory, valuation, risk and advisory, government healthcare consulting, employee benefits, insurance, payroll, retirement, and IT consulting services, and it leverages its broad expertise and national footprint to address complex business needs for a wide client base. Its integrated approach and focus on specialized services provide a competitive advantage in the specialty business services sector.

Foolish Take

Granite Investment's decision to pare back its CBIZ stake seems to reflect a disciplined response to valuation and near-term volatility after a turbulent year for the stock. The California-based firm sold 137,812 shares, trimming roughly $15.4 million in exposure during the third quarter, according to its latest SEC filing. Nevertheless, the firm held on to a sizeable number of shares valued at $15.7 million.

CBIZ shares have fallen more than 40% since February, and the firm delivered weaker-than-expected revenue in the third quarter of $693.8 million, up 58% year over year, but thanks largely to the company's acquisition of Marcum. Meanwhile, adjusted EPS rose 8.5% to $1.01, and GAAP net income slipped 14%, reflecting integration costs and rising debt expenses.

For long-term investors, CBIZ’s fundamentals remain sound: Its financial servicessegment performing well, and integration synergies appear ahead of plan. Yet Granite’s sell signals some caution—consistent with its philosophy of seeking “high-quality companies with catalysts for positive change” while controlling risk. With shares now trading near multi-year lows, the next catalyst may hinge on margin recovery and continued balance-sheet discipline.

Glossary

13F reportable assets under management (AUM): The value of securities a fund must disclose in quarterly SEC Form 13F filings.
Portfolio rebalancing: Adjusting a fund's holdings to maintain desired asset allocation or risk levels.
Exposure: The amount of capital or percentage of a portfolio invested in a particular asset or sector.
Position: The amount of a particular security or asset held by an investor or fund.
Top holdings: The largest investments in a fund, typically ranked by market value.
Professional service fees: Revenue earned by providing specialized advisory or consulting services rather than selling products.
Segments: Distinct business units or divisions within a company, often reported separately for financial purposes.
National Practices: Specialized service lines within a company that operate across multiple regions or markets.
Specialty business services sector: Industry segment focused on providing specialized professional, financial, or advisory services to clients.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.