Hestia's 10b5-1 Plan: A Vote of Confidence in Pitney Bowes' Future

In the realm of investment management, few things carry more weight than the actions of large institutional investors. When these investors make significant moves, it often signals their confidence in a company's trajectory. This is precisely what Hestia Capital Management, LLC has done with its recently disclosed 10b5-1 plan at Pitney Bowes, Inc. (NYSE: PBI), a move that reflects a deep-seated belief in the company's long-term growth potential.

Hestia, a major shareholder of Pitney Bowes, has put in place a 10b5-1 plan for its Managing Member, Kurt Wolf. This plan, structurally similar to those established by directors at other public companies, allows Hestia to gradually reduce its exposure to Pitney Bowes as the company's stock appreciates. This move, however, should not be interpreted as a lack of confidence in Pitney Bowes. Instead, it is a testament to Hestia's bullish outlook on the company's future.

Through its managed investment vehicles, Hestia is the beneficial owner of just over 15.83 million shares of Pitney Bowes' common stock. Notably, Hestia's flagship fund, Hestia Capital Partners, LP, is a deep value fund that targets investments in high-potential companies trading at 5x, or less, of Free Cash Flow. This strategy aligns perfectly with Hestia's 10b5-1 plan, which gives the firm the opportunity to gradually reduce its stake in Pitney Bowes as the company's stock price appreciates, thereby aligning the concentration of its shareholdings with its single-investment exposure limit commitments to its limited partners.



Hestia's plan is not without its share of intrigue. The firm has put together a table that highlights its ownership levels at various share price levels, including future potential levels. At a share price of $8, Hestia would retain 100% of its current stake. However, as the share price increases, Hestia's ownership levels decrease. At $10, Hestia would retain 92% of its current stake, and at $12, it would retain 76%. This trend continues until the share price reaches $20 or above, at which point Hestia would retain 21% of its current stake. Notably, Hestia would continue to beneficially own over 3.3 million shares, regardless of how high the stock goes.

This plan underscores Hestia's long-term commitment to Pitney Bowes. By retaining a significant stake even at higher share prices, Hestia signals its strong conviction in the company's ability to create enhanced value in the years to come. This is a powerful vote of confidence in Pitney Bowes' future, one that is sure to catch the attention of other investors.

In conclusion, Hestia Capital Management's 10b5-1 plan at Pitney Bowes is more than just a strategy to manage risk. It is a clear signal of the firm's confidence in the company's long-term growth potential. As Hestia gradually reduces its stake in Pitney Bowes, it does so with the expectation that the company will continue to deliver strong performance. This vote of confidence is a powerful endorsement of Pitney Bowes' enduring business model and its ability to create value for shareholders.