Is It Too Late to Buy Pitney Bowes (PBI) Stock?

Miller Value Partners recently released its Q1 2021 Investor Letter, a copy of which you can download here. In the first quarter, the Miller Income Fund’s I-shares returned 17.36% versus 0.90% for the ICE BofA Merrill Lynch High Yield Index. You should check out Miller Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the Q1 2021 Investor Letter, the fund highlighted a few stocks and Pitney Bowes Inc (NYSE:PBI) is one of them. Pitney Bowes Inc (NYSE:PBI) is a technology company. In the last three months, Pitney Bowes Inc (NYSE:PBI) stock gained 31%. Here is what the fund said:

“Pitney Bowes (PBI) rose 34.5% during the period after reporting Q4 revenue of $1.03Bn and Earnings Per Share (EPS) of $0.13, both topping consensus of $938.7M and $0.10, respectively. E-commerce revenue of $500M rose +60% Year-over-Year (Y/Y) on the back of +50% volume growth while organic revenue advanced +24%. The company generated $111M in operating cash flow (+31% Y/Y) and $97M in free cash flow (+19% Y/Y), driving debt reduction of $31M. PBI exited the year with total liquidity of $1.2Bn, comprised of $940M in cash and $260M available on the Revolving Credit Facility, implying trailing twelve month (TTM) net leverage of 4.3x. For FY21, management expects low-to-mid single digit revenue growth, positive EPS growth, and slightly lower free cash flow due to working capital reversal and a normalized level of capital expenditures (capex). PBI announced a series of steps to further optimize its capital structure, extend its maturity schedule, and lower its cost of borrowing, including the redemption of the $173M 3.375% unsecured bonds due 2021 and a tender offer for up to $375M of its 2022-2024 maturities. Additionally, the company secured a new $450M Term Loan-B at L+400 bps2 due 2028, which in conjunction with a portion of the proceeds from the unsecured issuance, will retire the existing $850M Term Loan-B due 2025.”

mail, post, parcel, business, postman, box, postal, worker, letters, express, casual, woman, customer, table, delivering, courier, profession, packing, adult, safe, packet,

Africa Studio/

Miller Value Partners has been a long time Pitney Bowes Inc (NYSE:PBI) bull. In November 2020, we shared Miller Value Partners’ bullish PBI’s thesis in this article.

Our calculations showed that Pitney Bowes Inc (NYSE:PBI) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.