Envestnet Portfolio Solutions Inc. has significantly increased its investment in Pitney Bowes Inc. (NYSE: PBI) by acquiring an additional 52,517 shares, representing a growth of 204.5% during the second quarter of 2023. According to a recent Form 13F filing with the Securities and Exchange Commission (SEC), Envestnet now holds a total of 78,200 shares valued at approximately $853,000.
This increase in ownership comes amid a broader trend of institutional investment in Pitney Bowes, a technology and logistics company. Various hedge funds and institutional investors have been actively adjusting their positions. For instance, Trail Ridge Investment Advisors LLC entered a new position worth around $267,000 in the first quarter. Cambridge Investment Research Advisors Inc. boosted its stake by 8.8%, now owning 60,409 shares valued at $547,000 after acquiring an additional 4,866 shares.
GAMMA Investing LLC saw a remarkable growth of 1,030.5% in its holdings during the same period, now owning 30,716 shares valued at $278,000. Vanguard Group Inc. also raised its holdings slightly by 0.7% and now possesses 21,313,865 shares valued at $192.89 million. Collectively, institutional investors and hedge funds own approximately 67.88% of Pitney Bowes stock.
Recent Insider Transactions and Stock Performance
In related news, Pitney Bowes Director Brent D. Rosenthal purchased 3,000 shares on September 3, 2023, at an average price of $11.97 per share, totaling $35,910. This transaction, disclosed in an SEC filing, reflects confidence in the company’s prospects. Insiders now hold 9.00% of the company’s stock.
As for stock performance, Pitney Bowes shares opened at $11.26 on Monday. The stock has experienced fluctuations over the past year, with a low of $6.88 and a high of $13.11. The company currently has a market capitalization of $1.94 billion, a price-to-earnings (P/E) ratio of -18.77, and a beta of 1.27. The fifty-day moving average stands at $11.56, while the two-hundred-day average is $10.60.
Pitney Bowes recently reported its earnings results for the second quarter on July 30, 2023, achieving an earnings per share (EPS) of $0.27, matching analysts’ expectations. The company experienced a 5.7% decline in revenue year-over-year, reporting $461.91 million compared to the expected $475.92 million. The technology firm has provided guidance for fiscal year 2025, estimating an EPS of between $1.200 and $1.400.
Dividend Increase and Share Repurchase Program
In addition to its financial performance, Pitney Bowes announced a quarterly dividend increase to $0.08 per share, paid on September 8, 2023. This represents a rise from the previous dividend of $0.07, translating to an annualized dividend of $0.32 with a yield of 2.8%. The ex-dividend date was August 11, 2023.
Furthermore, the company’s Board of Directors has authorized a share repurchase program allowing for the buyback of up to $400 million in outstanding shares. This program permits the reacquisition of up to 18.9% of its stock through open market purchases, often viewed as a signal that the management believes the stock is undervalued.
Analyst ratings for Pitney Bowes have shown some variability. Weiss Ratings recently reiterated a “sell” rating on the stock, while Wall Street Zen downgraded its rating from “strong-buy” to “buy.” Currently, the consensus rating among analysts is “Reduce,” indicating a cautious outlook on the stock’s performance moving forward.
Pitney Bowes Inc., which operates in the shipping and mailing sector, provides technology and logistics solutions to a diverse range of clients, including small and medium-sized businesses, large enterprises, and government entities globally.
