Investing

Hestia Capital Discloses Activist Position in PBI / Pitney Bowes

Fintel reports that Hestia Capital Partners Lp has filed a 13D form with the SEC disclosing ownership of 12,000,000 shares of Pitney Bowes Inc. (PBI). This represents 6.9% of the company.

Pitney Bowes is a global technology company providing commerce solutions that power billions of transactions. Clients around the world, including 90 percent of the Fortune 500, rely on the accuracy and precision delivered by Pitney Bowes solutions, analytics, and APIs in the areas of ecommerce fulfillment, shipping and returns; cross-border ecommerce; office mailing and shipping; presort services; and financing.

For 100 years Pitney Bowes has been innovating and delivering technologies that remove the complexity of getting commerce transactions precisely right.

In their most recent earnings update, the company reported the following highlights:

Third Quarter Financial Highlights

  • Revenue in the quarter was $831 million, a decrease of 5 percent on a reported basis and 4 percent, constant currency, versus the comparable quarter in 2021
  • GAAP EPS was $0.03 and Adjusted EPS was $0.00 in the quarter versus $0.05 and $0.08, respectively, in third quarter 2021
  • Adjusted EBIT was $38 million compared to $39 million in second quarter 2022 and a decline of $12 million on a year-over-year basis
  • GAAP cash from operating activities in the quarter was a net use of $36 million
  • Free cash flow was a net use of $16 million versus a net source of $30 million in third quarter 2021; the year-over-year decline was driven by changes in working capital and lower net income partially offset by lower capital expenditures and an increase in customer deposits
  • Cash and short-term investments were $607 million at the end of the quarter

Third Quarter Business Highlights

  • Domestic Parcel revenue grew by 2 percent with improved gross margins despite lower volumes
  • Presort revenue grew 4 percent on a year-over-year basis and with a 500 basis point EBIT margin improvement relative to second quarter 2022
  • SendTech revenue grew on a constant currency basis driven by high-teens growth in shipping-related revenues
  • Equipment revenue and financial receivables both grew year-over-year

What are other large shareholders doing?

 

Goldman Sachs Group Inc holds 5,111,333 shares representing 2.94% ownership of the company. In it’s prior filing, the firm reported owning 5,986,689 shares, representing a decrease of 17.13%. The firm decreased its portfolio allocation in PBI by 83.13% over the last quarter.

D. E. Shaw & Co., Inc. holds 4,326,555 shares representing 2.49% ownership of the company. In it’s prior filing, the firm reported owning 3,354,787 shares, representing an increase of 22.46%. The firm decreased its portfolio allocation in PBI by 39.15% over the last quarter.

Charles Schwab Investment Management Inc holds 4,096,587 shares representing 2.35% ownership of the company. In it’s prior filing, the firm reported owning 3,587,519 shares, representing an increase of 12.43%. The firm decreased its portfolio allocation in PBI by 34.46% over the last quarter.

Capital Management Corp /va holds 2,929,221 shares representing 1.68% ownership of the company. In it’s prior filing, the firm reported owning 2,149,501 shares, representing an increase of 26.62%. The firm increased its portfolio allocation in PBI by 0.17% over the last quarter.

Geode Capital Management, Llc holds 2,917,222 shares representing 1.68% ownership of the company. In it’s prior filing, the firm reported owning 2,829,409 shares, representing an increase of 3.01%. The firm decreased its portfolio allocation in PBI by 31.28% over the last quarter.

What is the overall Fund Sentiment?

There are 505 funds or institutions reporting positions in Pitney Bowes Inc.. This is a decrease of 14 owner(s) or 2.70%.

Average portfolio weight of all funds dedicated to Pitney Bowes Inc. is 0.0636%, a decrease of 19.0800%. Total shares owned by institutions decreased in the last three months by 2.58% to 125,454,477 shares.

Fintel’s Fund Sentiment Score is a quantitative model that ranks companies from zero to 100 based on Fund Sentiment. Fund Sentiment is important because it tells you if funds are buying or selling – and in particular how the company ranks compared to other companies in the investing universe.

This article originally appeared on Fintel.

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