Pitney Bowes (NYSE:PBI) Sees Strong Trading Volume - Still a Buy?

Key Points

• Pitney Bowes experienced a significant increase in trading volume, with approximately 7.76 million shares exchanged, marking a 205% rise from the previous session.
• The company announced an increase in its quarterly dividend to $0.08, representing a yield of 2.8%, while also initiating a share buyback program of up to $400 million.
• Analysts have mixed views on the stock, with Sidoti upgrading it to a "hold" rating and Wall Street Zen downgrading it from "strong-buy" to "buy."

Pitney Bowes Inc. (NYSE:PBI - Get Free Report) saw unusually-high trading volume on Wednesday . Approximately 7,758,180 shares changed hands during trading, an increase of 205% from the previous session's volume of 2,543,271 shares.The stock last traded at $11.00 and had previously closed at $11.18.

Wall Street Analysts Forecast Growth

PBI has been the subject of a number of analyst reports. Sidoti raised Pitney Bowes to a "hold" rating in a report on Monday, May 5th. Wall Street Zen downgraded Pitney Bowes from a "strong-buy" rating to a "buy" rating in a research note on Thursday, May 15th.

Pitney Bowes Price Performance

The company has a market cap of $1.97 billion, a PE ratio of -19.03, a PEG ratio of 0.60 and a beta of 1.54. The firm's 50 day moving average is $11.06 and its 200 day moving average is $9.81.

Pitney Bowes (NYSE:PBI - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The technology company reported $0.27 EPS for the quarter, meeting analysts' consensus estimates of $0.27. The firm had revenue of $461.91 million during the quarter, compared to analyst estimates of $475.92 million. Pitney Bowes had a negative net margin of 5.60% and a negative return on equity of 38.01%. The business's revenue for the quarter was down 5.7% on a year-over-year basis. During the same period in the previous year, the business earned $0.03 EPS. As a group, analysts anticipate that Pitney Bowes Inc. will post 1.21 EPS for the current year.

Pitney Bowes Increases Dividend

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

Pitney Bowes declared that its board has approved a share buyback program on Wednesday, July 30th that authorizes the company to repurchase $400.00 million in shares. This repurchase authorization authorizes the technology company to buy up to 18.9% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at Pitney Bowes

In other news, EVP Deborah Pfeiffer sold 35,000 shares of Pitney Bowes stock in a transaction 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 of the company's stock, valued at approximately $1,401,016.70. The trade was a 23.27% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 9.00% of the company's stock.

Institutional Investors Weigh In On Pitney Bowes

Several hedge funds have recently added to or reduced their stakes in PBI. Permit Capital LLC increased its position in shares of Pitney Bowes by 18.8% during the 2nd quarter. Permit Capital LLC now owns 2,850,000 shares of the technology company's stock valued at $31,094,000 after purchasing an additional 450,000 shares during the last quarter. Bank of New York Mellon Corp boosted its stake in Pitney Bowes by 4.3% in the second quarter. Bank of New York Mellon Corp now owns 1,584,850 shares of the technology company's stock worth $17,291,000 after buying an additional 65,239 shares in the last quarter. Teacher Retirement System of Texas raised its stake in shares of Pitney Bowes by 54.3% during the second quarter. Teacher Retirement System of Texas now owns 271,408 shares of the technology company's stock worth $2,961,000 after acquiring an additional 95,479 shares in the last quarter. AlphaQuest LLC raised its stake in shares of Pitney Bowes by 190.1% during the second quarter. AlphaQuest LLC now owns 62,321 shares of the technology company's stock worth $680,000 after acquiring an additional 40,842 shares in the last quarter. Finally, First Citizens Bank & Trust Co. lifted its holdings in shares of Pitney Bowes by 195.4% in the 2nd quarter. First Citizens Bank & Trust Co. now owns 81,197 shares of the technology company's stock worth $886,000 after acquiring an additional 53,708 shares during the last quarter. Institutional investors own 67.88% of the company's stock.

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.

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