Pitney Bowes Inc. $PBI Shares Sold by Contrarian Capital Management L.L.C.

Key Points

• Contrarian Capital Management L.L.C. has reduced its holdings in Pitney Bowes by 11.3%, now owning 180,000 shares valued at approximately $1.63 million.
• Pitney Bowes has initiated a $400 million share buyback program, signaling potential undervaluation of its stock as the company seeks to repurchase up to 18.9% of its shares.
• The company has increased its quarterly dividend to $0.08 per share, representing a 14.3% increase from the previous quarter’s dividend of $0.07.

Contrarian Capital Management L.L.C. lessened its position in Pitney Bowes Inc. (NYSE:PBI - Free Report) by 11.3% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 180,000 shares of the technology company's stock after selling 23,000 shares during the quarter. Pitney Bowes accounts for 0.4% of Contrarian Capital Management L.L.C.'s portfolio, making the stock its 18th largest position. Contrarian Capital Management L.L.C. owned about 0.10% of Pitney Bowes worth $1,629,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in PBI. First Trust Advisors LP bought a new stake in Pitney Bowes during the 4th quarter valued at about $6,245,000. Invesco Ltd. increased its position in Pitney Bowes by 38.9% during the 1st quarter. Invesco Ltd. now owns 2,918,742 shares of the technology company's stock valued at $26,415,000 after purchasing an additional 817,953 shares during the period. Deutsche Bank AG increased its position in Pitney Bowes by 493.1% during the 1st quarter. Deutsche Bank AG now owns 850,538 shares of the technology company's stock valued at $7,697,000 after purchasing an additional 707,133 shares during the period. Millennium Management LLC increased its position in Pitney Bowes by 103.0% during the 4th quarter. Millennium Management LLC now owns 1,269,207 shares of the technology company's stock valued at $9,189,000 after purchasing an additional 644,002 shares during the period. Finally, Nuveen LLC purchased a new position in Pitney Bowes during the 1st quarter valued at about $5,322,000. Institutional investors own 67.88% of the company's stock.

Pitney Bowes Trading Up 0.8%

Shares of NYSE:PBI traded up $0.10 on Monday, hitting $12.14. 2,044,690 shares of the company were exchanged, compared to its average volume of 3,809,657. Pitney Bowes Inc. has a 1-year low of $6.22 and a 1-year high of $13.11. The stock's 50 day moving average price is $11.51 and its 200 day moving average price is $10.18. The firm has a market capitalization of $2.09 billion, a P/E ratio of -20.23, a price-to-earnings-growth ratio of 0.62 and a beta of 1.29.

Pitney Bowes (NYSE:PBI - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The technology company reported $0.27 EPS for the quarter, hitting the consensus estimate of $0.27. Pitney Bowes had a negative net margin of 5.60% and a negative return on equity of 38.01%. The business had revenue of $461.91 million during the quarter, compared to the consensus estimate of $475.92 million. During the same period in the previous year, the firm posted $0.03 earnings per share. The business's revenue for the quarter was down 5.7% compared to the same quarter last year. Pitney Bowes has set its FY 2025 guidance at 1.200-1.400 EPS. On average, equities analysts predict that Pitney Bowes Inc. will post 1.21 EPS for the current fiscal year.

Pitney Bowes announced that its Board of Directors has approved a stock repurchase plan on Wednesday, July 30th that allows the company to buyback $400.00 million in shares. This buyback authorization allows the technology company to purchase up to 18.9% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

Pitney Bowes Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 8th. Stockholders of record on Monday, August 11th will be paid a dividend of $0.08 per share. The ex-dividend date is Monday, August 11th. This is an increase from Pitney Bowes's previous quarterly dividend of $0.07. This represents a $0.32 annualized dividend and a dividend yield of 2.6%. Pitney Bowes's payout ratio is presently -53.33%.

Insider Buying and Selling

In other Pitney Bowes news, EVP Deborah Pfeiffer sold 35,000 shares of Pitney Bowes stock in a transaction that occurred on Monday, July 14th. The shares were sold at an average price of $12.14, for a total transaction of $424,900.00. Following the completion of the sale, the executive vice president directly owned 115,405 shares in the company, valued at approximately $1,401,016.70. The trade was a 23.27% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 9.00% of the company's stock.

Analyst Ratings Changes

A number of research firms have commented on PBI. Sidoti raised shares of Pitney Bowes to a "hold" rating in a research report on Monday, May 5th. Wall Street Zen downgraded shares of Pitney Bowes from a "strong-buy" rating to a "buy" rating in a research report on Friday, August 22nd. One equities research analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the company currently has an average rating of "Hold".

Pitney Bowes Company Profile

Pitney Bowes Inc, a shipping and mailing company, provides technology, logistics, and financial services to small and medium-sized businesses, large enterprises, retailers, and government clients in the United States and internationally. It operates through Global Ecommerce, Presort Services, and SendTech Solutions segments.