Pitney Bowes (NYSE:PBI) Trading Down 5.8% - Time to Sell?

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 trading on Tuesday . The company traded as low as $12.08 and last traded at $11.95. 1,098,094 shares were traded during trading, a decline of 59% from the average session volume of 2,657,283 shares. The stock had previously closed at $12.68.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen lowered shares of Pitney Bowes from a "strong-buy" rating to a "buy" rating in a research report on Friday, August 22nd. One investment analyst has rated the stock with a Hold rating, Based on data from MarketBeat, Pitney Bowes currently has a consensus rating of "Hold".

Pitney Bowes Trading Down 5.7%

The business's 50-day moving average price is $11.69 and its 200-day moving average price is $10.25. The stock has a market cap of $2.06 billion, a PE ratio of -19.94, a P/E/G ratio of 0.63 and a beta of 1.29.

Pitney Bowes (NYSE:PBI - Get Free Report) last posted its 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 firm had revenue of $461.91 million during the quarter, compared to analysts' expectations of $475.92 million. During the same period in the previous year, the business posted $0.03 EPS. The business's revenue 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. As a group, analysts predict that Pitney Bowes Inc. will post 1.21 earnings per share for the current year.

Pitney Bowes Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, September 8th. Shareholders of record on Monday, August 11th were given a $0.08 dividend. The ex-dividend date of this dividend was Monday, August 11th. 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 2.7%. Pitney Bowes's dividend payout ratio is currently -53.33%.

Pitney Bowes declared that its board has approved a share buyback plan on Wednesday, July 30th that authorizes the company to repurchase $400.00 million in outstanding shares. This repurchase authorization authorizes the technology company to reacquire 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 Activity

In other news, Director Brent D. Rosenthal bought 3,000 shares of Pitney Bowes stock in a transaction that occurred on Wednesday, September 3rd. The shares were purchased at an average price of $11.97 per share, with a total value of $35,910.00. Following the completion of the acquisition, the director directly owned 3,000 shares in the company, valued at $35,910. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Deborah Pfeiffer sold 35,000 shares of the firm's stock in a transaction that occurred on Monday, July 14th. The stock was sold at an average price of $12.14, for a total transaction of $424,900.00. Following the transaction, the executive vice president owned 115,405 shares in the company, valued at approximately $1,401,016.70. This trade represents a 23.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. 9.00% of the stock is currently owned by corporate insiders.

Institutional Trading of Pitney Bowes

A number of institutional investors and hedge funds have recently bought and sold shares of PBI. Squarepoint Ops LLC grew its position in Pitney Bowes by 54.0% in the second quarter. Squarepoint Ops LLC now owns 566,511 shares of the technology company's stock valued at $6,181,000 after acquiring an additional 198,743 shares in the last quarter. Thrivent Financial for Lutherans raised its position in Pitney Bowes by 4.0% in the second quarter. Thrivent Financial for Lutherans now owns 120,771 shares of the technology company's stock worth $1,318,000 after acquiring an additional 4,658 shares in the last quarter. Thompson Davis & CO. Inc. raised its holdings in Pitney Bowes by 61.1% during the 2nd quarter. Thompson Davis & CO. Inc. now owns 22,044 shares of the technology company's stock worth $241,000 after buying an additional 8,361 shares during the period. State of Wyoming raised its holdings in Pitney Bowes by 49.9% during the 2nd quarter. State of Wyoming now owns 42,596 shares of the technology company's stock worth $465,000 after buying an additional 14,183 shares during the period. Finally, Public Sector Pension Investment Board increased its holdings in shares of Pitney Bowes by 7.4% in the 2nd quarter. Public Sector Pension Investment Board now owns 538,356 shares of the technology company's stock valued at $5,873,000 after purchasing an additional 37,002 shares during the period. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.