Shares of Pitney Bowes Inc. (NYSE:PBI) recorded -7.44% loss during trading session on August 12th, 2019. The script traded as low as $3.48 and last traded at $3.55. 4.11 million shares changed exchanged hands during trading, a drop of -35.6% from the 30-day average session volume of 3.03M shares. The firm had previously closed at $3.83. The company has $183.84M outstanding shares, a price-to-earnings ratio of 6.58, price-to-earnings-growth ratio of 0.19 and a beta of 1.92. The company has a RSI of 38.85, ATR of 0.28 and a volatility of 9.52% this week. PBI has a 52 week low price of $3.29 and a 52 week high price of $8.56.
Investors have identified the tech company Pitney Bowes Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 651.71M, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Pitney Bowes Inc. (PBI) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For PBI, the company has in raw cash 771.04 million on their books with 1.3 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 2.16 billion total, with 5.28 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
PBI were able to record 25.46 million as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 96.22 million. In cash movements, the company had a total of 86.78 million as operating cash flow.
Potential earnings growth for Pitney Bowes Inc. (PBI)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Pitney Bowes Inc. recorded a total of 860.78 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -0.01% coming in sequential stages and their sales for the third quarter reducing by -0.01%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 491.57 million trying to sell their products during the last quarter, with the result yielding a gross income of 369.21 million. This allows shareholders to hold on to 183.84M with the revenue now reading 130 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.38 cents a share).
Is the stock of PBI attractive?
Having a look at the company’s valuation, the company is expected to record 0.90 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on PBI sounds very interesting.
In related news, EVP & Pres. of SMB Solutions Dies Jason bought 1,500 shares of the company’s stock in a transaction that recorded on June 30th, 2019. The purchase was performed at an average price of 4.03, for a total value of 6,045. As the purchase deal closes, the Director Dies Jason now bought 10,000 shares of the company’s stock, valued at 52,150. Also, EVP & Pres. of SMB Solutions Dies Jason bought 3,600 shares of the company’s stock in a deal that was recorded on May 3rd, 2019. The shares were bought at an average cost of 5.72 per share, with a total market value of 19,258. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.
1 out of 5 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Pitney Bowes Inc. stock. 1 analysts has assigned a Sell rating on the PBI stock. The 12-month mean consensus price target for the company’s shares has been set at $7.60.