Pitney Bowes (PBI) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Pitney Bowes (NYSE:PBI) from a hold rating to a sell rating in a report published on Wednesday.

According to Zacks, “Pitney Bowes is one of the largest providers of mail processing equipment and integrated mail solutions across the world. As the company continues to transform its portfolio and make necessary investments to boost sales, it expects pressure on margins at least in the near term. Changing business mix is also likely to impact the bottom line adversely. Moreover, adverse changes in postal regulations across key markets and intensifying competition may also negatively impact profitability. However, Pitney Bowes’ efforts to transform its business and optimize its new enterprise business platform to boost profitability hold promise. This apart, the thriving global ecommerce business and new product launches are anticipated to bolster the top line.”

PBI has been the topic of a number of other research reports. Maxim Group set a $12.00 price objective on Pitney Bowes and gave the stock a buy rating in a research note on Friday, November 2nd. ValuEngine lowered Pitney Bowes from a sell rating to a strong sell rating in a research note on Tuesday, September 4th.

PBI stock traded up $0.04 during trading on Wednesday, hitting $7.14. The company had a trading volume of 18,923 shares, compared to its average volume of 2,144,863. The company has a debt-to-equity ratio of 12.25, a current ratio of 1.19 and a quick ratio of 1.16. The firm has a market cap of $1.32 billion, a price-to-earnings ratio of 5.07 and a beta of 0.85. Pitney Bowes has a fifty-two week low of $6.43 and a fifty-two week high of $14.80.

Pitney Bowes (NYSE:PBI) last announced its quarterly earnings results on Thursday, November 1st. The technology company reported $0.27 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.25 by $0.02. The business had revenue of $832.86 million for the quarter, compared to analyst estimates of $852.67 million. Pitney Bowes had a return on equity of 108.12% and a net margin of 7.21%. Pitney Bowes’s quarterly revenue was up 13.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.33 EPS. On average, research analysts anticipate that Pitney Bowes will post 1.16 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, December 11th. Shareholders of record on Tuesday, November 20th were paid a $0.1875 dividend. This represents a $0.75 dividend on an annualized basis and a yield of 10.50%. The ex-dividend date was Monday, November 19th. Pitney Bowes’s dividend payout ratio is currently 53.19%.

Institutional investors have recently bought and sold shares of the business. Paloma Partners Management Co acquired a new position in Pitney Bowes in the third quarter worth $108,000. Tower Research Capital LLC TRC raised its position in shares of Pitney Bowes by 84.2% during the third quarter. Tower Research Capital LLC TRC now owns 18,686 shares of the technology company’s stock worth $133,000 after acquiring an additional 8,541 shares during the last quarter. Advisory Services Network LLC raised its position in shares of Pitney Bowes by 745.1% during the third quarter. Advisory Services Network LLC now owns 20,536 shares of the technology company’s stock worth $145,000 after acquiring an additional 18,106 shares during the last quarter. Wedbush Securities Inc. bought a new stake in shares of Pitney Bowes during the second quarter worth $184,000. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Pitney Bowes during the second quarter worth $219,000. 70.79% of the stock is currently owned by institutional investors.

About Pitney Bowes

Pitney Bowes Inc offers customer information management, location intelligence, and customer engagement products and solutions in the United States and internationally. The company operates in three segments: Small & Medium Business Solutions; Enterprise Business Solutions; and Digital Commerce Solutions.

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