Pitney Bowes (NYSE:PBI) Board of Directors Declares Share Repurchase Plan

Key Points

• Pitney Bowes has authorized a share buyback plan totaling $400 million, allowing the company to repurchase up to 18.9% of its outstanding shares as it believes its stock is undervalued.
• The company recently declared a quarterly dividend of $0.08 per share, increasing from the previous $0.07, which reflects a 2.81% yield.
• Pitney Bowes' stock has seen a recent decline, trading down 1.6% to $11.38, while analysts have mixed ratings on the stock, with some raising it to "hold" and others downgrading it from "strong-buy" to "buy".

Pitney Bowes (NYSE:PBI - Get Free Report) announced that its board has approved a share repurchase program on Wednesday, July 30th, RTT News reports. The company plans to repurchase $400.00 million in shares. This repurchase authorization authorizes the technology company to purchase up to 18.9% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's management believes its stock is undervalued.

Pitney Bowes Stock Performance

Shares of NYSE PBI traded down $0.09 during midday trading on Friday, hitting $11.27. 3,924,456 shares of the stock traded hands, compared to its average volume of 3,243,312. Pitney Bowes has a one year low of $5.58 and a one year high of $13.11. The business has a 50 day moving average price of $11.01 and a two-hundred day moving average price of $9.75. The company has a market cap of $2.06 billion, a PE ratio of -18.78, a P/E/G ratio of 0.58 and a beta of 1.54.

Pitney Bowes (NYSE:PBI - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The technology company reported $0.27 earnings per share (EPS) for the quarter, meeting 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 quarter last year, the firm posted $0.03 EPS. Pitney Bowes's revenue was down 5.7% compared to the same quarter last year. As a group, equities research analysts forecast that Pitney Bowes will post 1.21 EPS for the current fiscal year.

Pitney Bowes Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 8th. Investors of record on Monday, August 11th will be issued a $0.08 dividend. The ex-dividend date is Monday, August 11th. This represents a $0.32 dividend on an annualized basis and a dividend yield of 2.8%. This is a boost from Pitney Bowes's previous quarterly dividend of $0.07. Pitney Bowes's dividend payout ratio (DPR) is currently -46.67%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the stock. Wall Street Zen lowered shares of Pitney Bowes from a "strong-buy" rating to a "buy" rating in a report on Thursday, May 15th. Sidoti raised Pitney Bowes to a "hold" rating in a research report on Monday, May 5th.

Insider Buying and Selling at Pitney Bowes

In other Pitney Bowes news, EVP Deborah Pfeiffer sold 35,000 shares of Pitney Bowes stock in a transaction dated Monday, July 14th. The stock was sold at an average price of $12.14, for a total transaction of $424,900.00. Following the completion of the transaction, the executive vice president 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 9.00% of the stock is owned by corporate insiders.

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.