What Happened?
Shares of shipping and mailing solutions provider Pitney Bowes (NYSE:PBI) fell 6.2% in the morning session after traders locked in gains as the stock approached overbought conditions at multi-year highs.
The decline appears to be driven by technical factors, including resistance and high volatility, rather than new company-specific news. This profit-taking follows a recent uptick in the stock's price. Despite some positive developments, such as S&P Global Ratings revising its outlook to positive from stable due to improved margins, the company faces a challenging road ahead. Both S&P and other market data point to an expected revenue decline for the year, with one source projecting a 1.2% drop, underperforming the industry.
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What Is The Market Telling Us
Pitney Bowes’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about 2 months ago when the stock gained 10.6% on the news that the U.S. Postal Service (USPS) announced new postage rate increases set to take effect on July 13, 2025.
The USPS revealed that prices for its mailing services will rise by an average of 7.4%, which includes a 5-cent increase for a First-Class Mail Forever stamp to $0.78. For Pitney Bowes, which provides shipping and mailing technology and services, these rate hikes can be a positive catalyst. The company's metered mail solutions offer customers a discount compared to the retail stamp price, and this savings becomes more pronounced as overall rates go up. The new structure maintains a 4-cent discount for metered letters, potentially driving more businesses toward Pitney Bowes' offerings to manage and mitigate rising postage costs.
Pitney Bowes is up 65.6% since the beginning of the year, and at $11.96 per share, it is trading close to its 52-week high of $12.79 from July 2025. Investors who bought $1,000 worth of Pitney Bowes’s shares 5 years ago would now be looking at an investment worth $2,496.
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