STAMFORD, Conn.—Paul J. Evans, a director at Pitney Bowes Inc . (NYSE:PBI), has recently purchased a significant amount of the company's common stock, according to a recent SEC filing. On November 20, Evans acquired a total of 29,000 shares, with transaction prices ranging from $7.765 to $7.8 per share. This acquisition represents a total investment of approximately $226,071.
This series of transactions increases Evans' direct ownership of Pitney Bowes stock, reflecting his continued confidence in the company's future prospects. Investors often watch insider transactions closely, as they can provide insights into the company’s health and the executives' perspectives on its valuation.
Pitney Bowes, headquartered in Stamford, Connecticut, is a global technology company known for its shipping and mailing products, as well as its e-commerce and software solutions.
In other recent news, Pitney Bowes Inc. has reached a significant agreement with DRF Logistics LLC, a crucial step towards DRF's exit from bankruptcy. The company anticipates this process will be completed by the end of 2024. The deal, still subject to final discussions, is expected to be part of a revised chapter 11 plan for DRF, aiming to resolve ongoing disputes with DRF's unsecured creditors.
On the financial front, Pitney Bowes reported a slight dip in third-quarter revenue, down to $499 million from $503 million year-over-year. However, the company has seen improvements in profitability, with adjusted EBITDA rising 22% to $103 million, and adjusted EPS increasing to $0.21, up from $0.16. These positive results are attributed to strategic initiatives to exit the Global Ecommerce segment, reduce costs, and optimize cash flow.
The company's free cash flow has improved to $75 million, up from $56 million year-over-year. Despite a decline in SendTech revenue due to technology migration, the Presort business demonstrated strong performance with a 9% growth in revenue. Looking ahead, the full-year revenue for 2024 is expected to decline at a low-single-digit rate, while EBIT guidance has been raised to $355-$360 million. These are among the recent developments at Pitney Bowes.
InvestingPro Insights
Paul J. Evans' recent purchase of Pitney Bowes Inc. (NYSE:PBI) shares aligns with several positive indicators highlighted by InvestingPro. The company's stock has shown remarkable strength, with InvestingPro data revealing a 102.4% price total return over the past year and an impressive 81.24% year-to-date return. This performance supports one of the InvestingPro Tips, which notes a "high return over the last year."
Additionally, InvestingPro Tips suggest that net income is expected to grow this year, and analysts predict the company will be profitable. This outlook may have influenced Evans' decision to increase his stake. The company's dividend yield of 2.6% and its 54-year streak of maintaining dividend payments further underscore its financial stability and commitment to shareholder returns.
However, investors should note that Pitney Bowes' stock price movements are quite volatile, according to another InvestingPro Tip. This volatility is reflected in the significant price uptick over the last six months, with InvestingPro data showing a 53.79% price total return during this period.
For those interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for Pitney Bowes, providing a deeper understanding of the company's financial health and market position.
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