**$PBI presents an asymmetric risk-reward turn around trade. NFA and DYOR. Positions below.**
*Most people have no idea what this company is but get their packages delivered by them every week :)*
# Company Overview
Pitney Bowes, Inc. is a global shipping and mailing company, which engages in the provision of technology, logistics, and financial services. It operates through the following segments: Global Ecommerce, Presort Services, and SendTech Solutions
\- The Global Ecommerce segment is composed of cross-border solutions, domestic parcel, and digital delivery services
\- The Presort Services segment offers sortation services to qualify large volumes of first-class mail, marketing mail, and bound and packet mail for postal work-sharing discounts
\- The SendTech Solutions segment provides physical and digital mailing and shipping solutions, financing, services, supplies, and other applications
Read more here: [Investor Relations Page](https://www.investorrelations.pitneybowes.com/?cm_sp=cards_image_homepage_default1_06012024Pitney)
[Logistics Center](https://preview.redd.it/yu16m0q4xb2e1.png?width=1440&format=png&auto=webp&s=72972583bb4d78ac2b3f1165dff60ab4c22d2529)
[some partners \(also work with USPS, UPS, etc.\)](https://preview.redd.it/5bzzqw4zwb2e1.png?width=2436&format=png&auto=webp&s=a35b96a8f4f56c568b62e299da276a399a0f3dfe)
# Key Developments
\- **February 2024**: Insiders start buying hand over fist as the turn around strategy began and new leadership was instituted
\- **May 2024**: they appointed interim CEO Lance Rosenzweig, an experienced leader with a background in driving efficiencies and simplifying corporate structures. He was appointed as permanent CEO in October
\- **Oct 30, 2024**: CEO bought 160,205 shares for a total price of $1,155,078
[yes i used a crayon](https://preview.redd.it/crht9tjaxb2e1.png?width=1822&format=png&auto=webp&s=be8c8e01af72e73f9371c5cbd51348064e62daf5)
# Financial Overview
^(\* still in the early stages of the turn around, YTD they have made significant improvements to costs and profitability)
[Q3 2024 ER](https://preview.redd.it/983xyamdxb2e1.png?width=1080&format=png&auto=webp&s=822d726f4c185177a8ea7cf9344432ff043a7a56)
# Cost Cutting + Turn Around Strategy
$PBI is focused on 4 strategic initiatives, the main 2 which are highlighted here:
(1) **Paying down high-cost debt**. They've already started to execute this ([News Room](https://www.pitneybowes.com/us/newsroom/press-releases.html)) resulting in over $11M in annual savings and boosting 2025 EPS by $0.06. They have a lot more room to reduce debt and are making this the top priority
(2) **Selling off Ecommerce Segment**. The Global Ecommerce segment had been struggling to achieve profitability over the past several years in the face of macroeconomic and industry headwinds (https://www.investorrelations.pitneybowes.com/news-releases/news-release-details/pitney-bowes-announces-value-maximizing-exit-path-global). Reducing this will help streamline costs, increase profitability, and allow for the focus on the core business
[Q3 2024 ER](https://preview.redd.it/2agath2gxb2e1.png?width=1914&format=png&auto=webp&s=b5570adcd79298f2646c09e1550151eb16110b74)
# Chart Analysis
\- Continues to respect the trend line formed near the low of the year
\- Continues to execute on their cost cutting/turnaround strategy
https://preview.redd.it/utqxfb1lxb2e1.jpg?width=2848&format=pjpg&auto=webp&s=29b86c478ec38e9c496744aa63e93bde0d113a89
https://preview.redd.it/9m5y3k1lxb2e1.jpg?width=2853&format=pjpg&auto=webp&s=35625741de20461955a46575eaa88801b904a069
# Price Targets & Positions
\* bought in around May and sold, rebuilding the position again
\* $PBI also pays a lovely **2.6% dividend**!!
\- January 2025: \~$8.70
\- March 2025: \~$9.50
\- Adding $10 calls for March and leaps
[positions](https://preview.redd.it/tpoai3wpxb2e1.png?width=1080&format=png&auto=webp&s=a97a250eae4d79773c1439307f2193150891b508)
# Key Updates
**11/22**: $PBI is likely getting MAJOR positive news on a court ruling Monday. The ruling will allow them to finalize their debt refinancing plans and start executing as well as start share repurchases
**11/22**: Daily chart check. Bounced off the 20-day SMA and formed a nice green candle above the local high
**11/24**: Director Paul Evans bought $226,072 worth of shares (29,000 units at $7.80) on 11/20, filed 11/22
[Source](https://quantisnow.com/insight/director-evans-paul-j-bought-226072-worth-of-shares-29000-units-at-780-sec-5788215)
**11/24**: Trilogy Leasing Co., PBI’s creditor withdrew an objection to their court case which clears the way for PBI to sell their GEC segment and finalize the process