This Logistics Stock Is Up 21% in One Year and Just Drew a $6.1 Million Buy

On February 2, Capital Management Corp disclosed in a U.S. Securities and Exchange Commission (SEC) filing that it increased its position in Pitney Bowes (NYSE:PBI) by 592,568 shares during the fourth quarter, an estimated $6.15 million trade based on quarterly average pricing.

What happened

According to a SEC filing dated February 2, Capital Management Corp bought an additional 592,568 shares of Pitney Bowes during the fourth quarter. The estimated value of the trade, calculated using the average closing price for the quarter, was $6.15 million. The stake’s quarter-end value increased by $4.30 million, a figure that includes both share additions and price appreciation.

What else to know

Pitney Bowes now accounts for 5.08% of the fund’s 13F assets under management.

Top holdings after the filing:

• NASDAQ:IDCC: $37.12 million (6.1% of AUM)
• NYSE:PBI: $30.97 million (5.1% of AUM)
• NYSE:GTN: $29.76 million (4.9% of AUM)
• NASDAQ:NXST: $25.92 million (4.2% of AUM)
• NYSE:AEM: $22.72 million (3.7% of AUM)

As of February 2, PBI shares were priced at $10.43, up 21.4% over the past year and outperforming the S&P 500 by 7.13 percentage points.

Company overview

Company snapshot

• Pitney Bowes offers technology, logistics, and financial services, including parcel delivery, mail sortation, and digital mailing solutions across three business segments: Global Ecommerce, Presort Services, and SendTech Solutions.
• The company generates revenue primarily through shipping and mailing services, technology sales, and related financial solutions for businesses and government clients.
• It serves a diverse client base of small and medium-sized businesses, large enterprises, retailers, and government agencies in the United States, Canada, and internationally.

Pitney Bowes Inc. operates as a leading provider of integrated shipping, mailing, and logistics solutions, leveraging a broad technology and service platform to address the needs of business and government clients. The company maintains a diversified revenue stream through its e-commerce, mail presort, and digital mailing technology segments. Its established market presence and comprehensive product suite position it to serve a wide range of clients seeking efficiency in mail and parcel delivery.

What this transaction means for investors

When a fund increases exposure as a stock is already outperforming, it usually means the underlying business is backing up the hype. Pitney Bowes’ latest quarterly results offered evidence to that point. Revenue fell 8% year over year to $460 million, but profitability moved sharply in the other direction. GAAP EPS flipped to $0.30, up more than a dollar from last year, while adjusted EPS rose to $0.31. Free cash flow came in at $60 million despite restructuring payments, reinforcing that this is a cash story, not just an accounting one. Management also expanded its share repurchase authorization to $500 million and identified $50 million to $60 million in additional cost savings, signaling confidence in the balance sheet and operating trajectory.

More broadly, this portfolio favors cash-generative, often unloved names across media and industrials. At just over 5% of assets, Pitney Bowes now sits among the fund’s highest-conviction positions, alongside broadcasters and IP-heavy businesses.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.