Envestnet Acquires 52,517 Shares of Pitney Bowes, Boosts Holdings

Envestnet Portfolio Solutions Inc. has significantly increased its investment in Pitney Bowes Inc. (NYSE: PBI), acquiring an additional 52,517 shares during the second quarter of 2023. This move marks a remarkable 204.5% increase in Envestnet’s holdings, bringing the total to 78,200 shares. According to the company’s latest Form 13F filing with the U.S. Securities and Exchange Commission (SEC), these shares are valued at approximately $853,000.

Envestnet is not alone in its investment strategy; other institutional investors have also been active in the Pitney Bowes market. For instance, Trail Ridge Investment Advisors LLC established a new position worth about $267,000 in the first quarter. Similarly, Cambridge Investment Research Advisors Inc. raised its stake by 8.8%, now holding 60,409 shares valued at $547,000 after adding 4,866 shares in the same period. Another notable investor, GAMMA Investing LLC, increased its stake by a staggering 1,030.5%, acquiring 30,716 shares worth $278,000.

Amid these investments, Vanguard Group Inc. raised its holdings by 0.7% to 21,313,865 shares, valued at $192.89 million, and Xponance Inc. boosted its position by 186.6%, now owning 40,929 shares valued at $370,000. Collectively, institutional investors and hedge funds own 67.88% of Pitney Bowes’ stock.

Insider Activity and Stock Performance

In related developments, Brent D. Rosenthal, a director at Pitney Bowes, purchased 3,000 shares on September 3, 2023, for an average price of $11.97 per share, totaling $35,910. This acquisition highlights insider confidence in the company’s prospects, with Rosenthal’s holdings now valued at the same amount.

Pitney Bowes stock opened at $11.26 on Monday, with a 52-week low of $6.88 and a high of $13.11. The company has a market capitalization of $1.94 billion and a price-to-earnings (P/E) ratio of -18.77. The stock is currently trading with a fifty-day moving average of $11.56 and a 200-day moving average of $10.60.

On July 30, 2023, Pitney Bowes reported its earnings, revealing an earnings per share (EPS) of $0.27, meeting analysts’ estimates. The company experienced a 5.7% decline in revenue compared to the same quarter the previous year, reporting $461.91 million, against expectations of $475.92 million. For fiscal year 2025, Pitney Bowes has set its EPS guidance between $1.200 and $1.400.

Dividend Increase and Share Buyback Program

In a positive sign for shareholders, Pitney Bowes announced a quarterly dividend of $0.08 per share, an increase from the previous $0.07. This dividend was paid on September 8, 2023, to shareholders of record as of August 11, 2023, representing an annualized yield of 2.8%. The company’s dividend payout ratio stands at -53.33%.

Furthermore, Pitney Bowes has authorized a share repurchase program that allows for the buyback of up to $400 million in outstanding shares, enabling the company to reacquire up to 18.9% of its stock through open market purchases. Such initiatives often indicate that a company’s leadership considers its stock to be undervalued.

Analysts have provided mixed ratings for Pitney Bowes, with some brokerages issuing a “sell” rating, while others have adjusted their recommendations. Weiss Ratings reaffirmed a “sell” rating on October 8, 2023, while Wall Street Zen downgraded the stock from “strong-buy” to “buy” on August 22, 2023. Currently, the average rating for the stock is “Reduce,” with one analyst assigning a “Hold” rating and another issuing a “Sell” rating.

Pitney Bowes, known for its shipping and mailing solutions, continues to navigate a competitive landscape while adapting its strategies to foster growth and stability in the coming years.