Pitney Bowes (NYSE:PBI) Shares Down 5.8% - Here's Why

Key Points

• Pitney Bowes (NYSE:PBI) shares dropped by 5.8%, trading as low as $11.95 after previously closing at $12.68, with a significant decline in trading volume.
• Despite recent challenges, analysts from Wall Street lowered the stock's rating from "strong-buy" to "buy," indicating cautious optimism amidst a consensus rating of "Hold."
• Pitney Bowes recently increased its dividend to $0.08 per share and announced a $400 million share buyback plan, suggesting confidence in the company's value.

Shares of Pitney Bowes Inc. (NYSE:PBI - Get Free Report) traded down 5.8% during mid-day trading on Tuesday . The company traded as low as $12.08 and last traded at $11.95. 1,098,094 shares traded hands during trading, a decline of 59% from the average session volume of 2,657,283 shares. The stock had previously closed at $12.68.

Analyst Ratings Changes

Separately, Wall Street Zen cut Pitney Bowes from a "strong-buy" rating to a "buy" rating in a report on Friday, August 22nd. One research analyst has rated the stock with a Hold rating, According to MarketBeat, Pitney Bowes has an average rating of "Hold".

Pitney Bowes Price Performance

The company's 50-day simple moving average is $11.70 and its 200-day simple moving average is $10.27. The stock has a market capitalization of $1.96 billion, a price-to-earnings ratio of -19.01, a P/E/G ratio of 0.59 and a beta of 1.29.

Pitney Bowes (NYSE:PBI - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The technology company reported $0.27 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.27. The firm had revenue of $461.91 million during the quarter, compared to the consensus estimate 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% compared to the same quarter last year. During the same period last year, the business posted $0.03 earnings per share. Pitney Bowes has set its FY 2025 guidance at 1.200-1.400 EPS. Research analysts expect that Pitney Bowes Inc. will post 1.21 earnings per share for the current year.

Pitney Bowes Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 8th. Investors of record on Monday, August 11th were paid a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a yield of 2.8%. This is a positive change from Pitney Bowes's previous quarterly dividend of $0.07. The ex-dividend date of this dividend was Monday, August 11th. Pitney Bowes's payout ratio is -53.33%.

Pitney Bowes declared that its Board of Directors has initiated a share repurchase plan on Wednesday, July 30th that permits the company to repurchase $400.00 million in outstanding shares. This repurchase authorization permits the technology company to repurchase up to 18.9% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In related news, EVP Deborah Pfeiffer sold 35,000 shares of the business's stock in a transaction on Monday, July 14th. The shares were sold at an average price of $12.14, for a total value of $424,900.00. Following the sale, the executive vice president owned 115,405 shares of the company's stock, valued at $1,401,016.70. The trade was a 23.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Brent D. Rosenthal bought 3,000 shares of the company's stock in a transaction that occurred on Wednesday, September 3rd. The stock was purchased at an average price of $11.97 per share, for a total transaction of $35,910.00. Following the acquisition, the director owned 3,000 shares of the company's stock, valued at $35,910. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Company insiders own 9.00% of the company's stock.

Hedge Funds Weigh In On Pitney Bowes

Institutional investors have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC raised its holdings in shares of Pitney Bowes by 41.3% during the second quarter. EverSource Wealth Advisors LLC now owns 3,472 shares of the technology company's stock valued at $38,000 after purchasing an additional 1,015 shares during the period. Quantbot Technologies LP acquired a new stake in shares of Pitney Bowes in the 1st quarter worth about $36,000. Elevation Point Wealth Partners LLC acquired a new stake in shares of Pitney Bowes in the 2nd quarter worth about $51,000. Canada Pension Plan Investment Board acquired a new stake in shares of Pitney Bowes in the 2nd quarter worth about $51,000. Finally, KBC Group NV bought a new stake in Pitney Bowes in the 1st quarter worth about $65,000. Institutional investors and hedge funds own 67.88% of the company's stock.

About Pitney Bowes

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.