Pitney Bowes Inc. (PBI) Cut to “Strong Sell” at Zacks Investment Research

Pitney Bowes Inc. (NYSE:PBI) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report released on Monday.

According to Zacks, “Pitney Bowes’ third-quarter adjusted earnings missed the Zacks Consensus Estimate by 23.2%. On a GAAP basis, the company’s earnings per share was down 11.4% year over year, driven by a rise in total costs and  cost of investment in new business areas. Year to date, Pitney Bowes’ shares witnessed a steep negative return against the industry’s average gain. As the company continues to transform its portfolio and make necessary investments to boost sales, it expects pressure on margins in the short term. Based on escalating restructuring charges, the company trimmed earnings guidance for 2017. This apart, strengthening of the U.S. dollar is likely to hurt the company’s cross-border sales, consequently hindering growth. Meanwhile, a thriving global ecommerce business and new product launches are expected to offset some of these challenges, bolstering the top line.”

PBI has been the topic of several other reports. Loop Capital reduced their price objective on Pitney Bowes from $14.00 to $12.00 and set a “hold” rating on the stock in a research report on Thursday. BidaskClub downgraded Pitney Bowes from a “hold” rating to a “sell” rating in a research report on Wednesday, August 2nd. ValuEngine upgraded Pitney Bowes from a “hold” rating to a “buy” rating in a research report on Monday, October 2nd. Sidoti upgraded Pitney Bowes from a “neutral” rating to a “buy” rating and set a $17.00 price objective on the stock in a research report on Wednesday, August 2nd. Finally, Cross Research downgraded Pitney Bowes from a “hold” rating to a “sell” rating in a research report on Tuesday, August 8th. Two equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and two have issued a buy rating to the company. Pitney Bowes presently has a consensus rating of “Hold” and a consensus price target of $14.50.

Shares of Pitney Bowes (NYSE PBI) opened at $11.25 on Monday. The company has a debt-to-equity ratio of 35.49, a current ratio of 1.42 and a quick ratio of 1.37. Pitney Bowes has a 12-month low of $11.09 and a 12-month high of $16.60. The stock has a market capitalization of $2,100.69, a price-to-earnings ratio of 7.26 and a beta of 1.25.

Pitney Bowes (NYSE:PBI) last issued its quarterly earnings data on Wednesday, November 1st. The technology company reported $0.33 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.43 by ($0.10). Pitney Bowes had a net margin of 2.64% and a negative return on equity of 5,297.85%. The company had revenue of $842.82 million during the quarter, compared to analysts’ expectations of $837.60 million. During the same quarter in the prior year, the company earned $0.44 earnings per share. The firm’s revenue was up .5% compared to the same quarter last year. sell-side analysts anticipate that Pitney Bowes will post 1.38 EPS for the current fiscal year.

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A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Breton Hill Capital Ltd. lifted its position in Pitney Bowes by 39.1% during the third quarter. Breton Hill Capital Ltd. now owns 808,496 shares of the technology company’s stock worth $11,327,000 after buying an additional 227,212 shares during the period. Principal Financial Group Inc. lifted its position in Pitney Bowes by 0.6% during the third quarter. Principal Financial Group Inc. now owns 795,001 shares of the technology company’s stock worth $11,138,000 after buying an additional 5,092 shares during the period. Prudential Financial Inc. lifted its position in Pitney Bowes by 1.8% during the third quarter. Prudential Financial Inc. now owns 1,508,085 shares of the technology company’s stock worth $21,128,000 after buying an additional 26,085 shares during the period. Brookstone Capital Management lifted its position in Pitney Bowes by 40.2% during the third quarter. Brookstone Capital Management now owns 26,243 shares of the technology company’s stock worth $368,000 after buying an additional 7,524 shares during the period. Finally, Wedge Capital Management L L P NC lifted its position in Pitney Bowes by 4.5% during the third quarter. Wedge Capital Management L L P NC now owns 1,609,910 shares of the technology company’s stock worth $22,555,000 after buying an additional 69,253 shares during the period. Hedge funds and other institutional investors own 77.34% of the company’s stock.

About Pitney Bowes

Pitney Bowes Inc is a global technology company. The Company offers customer information management, location intelligence and customer engagement products and solutions to help its clients market to their customers, and shipping, mailing, and cross border e-commerce products and solutions that enable the sending of parcels and packages across the globe.

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