Citigroup (NYSE:C) Issues Earnings Results, Beats Estimates By $0.43 EPS

Key Points

• Citigroup beat earnings estimates, reporting $3.15 EPS versus the $2.72 consensus, a $0.43 upside surprise. Revenue also rose 14.5% year over year, while net margin and return on equity came in at 9.35% and 9.19%, respectively.
• Shares were little changed after the report, opening at $140.56 and trading down 0.2% despite the strong earnings result. The stock remains near its 52-week high of $147.96 and above both its 50-day and 200-day moving averages.
• Citigroup’s outlook remains supported by bullish analyst sentiment and a $30 billion share repurchase authorization. Analysts currently have a consensus “Moderate Buy” rating with a $145 price target, and the buyback signals management confidence in the stock.

Citigroup (NYSE:C - Get Free Report) released its earnings results on Tuesday. The company reported $3.15 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.72 by $0.43, Briefing.com reports. Citigroup had a return on equity of 9.19% and a net margin of 9.35%.The business's quarterly revenue was up 14.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.96 earnings per share.

Citigroup Trading Down 0.2%

Shares of Citigroup stock opened at $140.56 on Tuesday. The business has a fifty day simple moving average of $133.96 and a two-hundred day simple moving average of $123.03. The company has a debt-to-equity ratio of 1.59, a current ratio of 0.99 and a quick ratio of 0.99. The company has a market capitalization of $239.74 billion, a price-to-earnings ratio of 17.42, a P/E/G ratio of 0.66 and a beta of 1.11. Citigroup has a 1 year low of $86.22 and a 1 year high of $147.96.

Wall Street Analyst Weigh In

C has been the subject of a number of recent research reports. Jefferies Financial Group started coverage on Citigroup in a research report on Thursday, March 26th. They set a "buy" rating and a $135.00 price target for the company. Piper Sandler restated an "overweight" rating and set a $145.00 target price (up from $125.00) on shares of Citigroup in a report on Wednesday, April 15th. The Goldman Sachs Group raised their target price on shares of Citigroup from $137.00 to $151.00 and gave the company a "buy" rating in a research report on Wednesday, April 15th. Oppenheimer lowered shares of Citigroup from an "outperform" rating to a "market perform" rating in a research note on Tuesday, June 30th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Citigroup in a research report on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, Citigroup presently has an average rating of "Moderate Buy" and a consensus target price of $145.00.

Key Stories Impacting Citigroup

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Analysts and market strategists are highlighting Citigroup as a standout among large U.S. banks heading into earnings, with expectations that it could post the strongest improvement on key metrics versus peers. As five big U.S. banks report earnings on the same day, Citigroup is the one to watch
• Positive Sentiment: Bank of America analysts said they expect major banks, including Citigroup, to beat both internal and consensus earnings estimates thanks to strong capital markets activity, resilient economic conditions, and healthy wealth-management flows. US bank earnings could surprise to the upside as Bank of America highlights strong operating backdrop
• Positive Sentiment: Citi’s tokenized USD clearing and 24/7 cross-border payment platform is adding to the bullish digital-transformation narrative, suggesting the bank is modernizing core infrastructure and potentially improving long-term efficiency. Does Citi’s Tokenized USD Clearing Breakthrough Deepen the Digital Transformation Narrative for Citigroup (C)?
• Neutral Sentiment: Citigroup received another “Moderate Buy” style analyst rating, reinforcing generally constructive sentiment but not adding a major new catalyst. Citigroup Inc. NYSE: C Given Average Rating of "Moderate Buy" by Analysts
• Negative Sentiment: Broader bank stocks were under pressure ahead of earnings, and that risk-off tone could weigh on Citigroup until results are reported. Bank stocks fall ahead of a packed earnings schedule

Citigroup announced that its board has authorized a share repurchase plan on Thursday, May 7th that allows the company to repurchase $30.00 billion in outstanding shares. This repurchase authorization allows the company to buy up to 13.7% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management believes its shares are undervalued.

Insider Transactions at Citigroup

In related news, Director John Cunningham Dugan sold 2,117 shares of the company's stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $125.30, for a total value of $265,260.10. Following the transaction, the director directly owned 12,194 shares in the company, valued at approximately $1,527,908.20. This represents a 14.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Edward Skyler sold 25,000 shares of the firm's stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $131.41, for a total value of $3,285,250.00. Following the transaction, the insider owned 182,022 shares in the company, valued at approximately $23,919,511.02. This trade represents a 12.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.11% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of C. Mcguire Capital Advisors Inc. bought a new stake in shares of Citigroup in the 4th quarter valued at $25,000. Compound Planning Inc. raised its holdings in shares of Citigroup by 4.3% in the 4th quarter. Compound Planning Inc. now owns 36,322 shares of the company's stock worth $4,238,000 after acquiring an additional 1,507 shares during the last quarter. TMB Capital Partners LLC purchased a new stake in shares of Citigroup in the fourth quarter worth approximately $276,000. Axxcess Wealth Management LLC lifted its holdings in shares of Citigroup by 2.9% in the fourth quarter. Axxcess Wealth Management LLC now owns 58,799 shares of the company's stock valued at $6,861,000 after purchasing an additional 1,646 shares in the last quarter. Finally, Corient Private Wealth LLC raised its position in Citigroup by 168.8% in the 4th quarter. Corient Private Wealth LLC now owns 1,188,005 shares of the company's stock valued at $138,628,000 after buying an additional 746,105 shares during the last quarter. Institutional investors own 71.72% of the company's stock.

Citigroup Company Profile

Citigroup Inc is a global financial services company headquartered in New York City with roots tracing back to the City Bank of New York, founded in 1812. The modern Citigroup was created through the 1998 merger of Citicorp and Travelers Group and has since operated as a diversified bank holding company that provides a broad range of banking and financial products and services to consumers, corporations, governments and institutions worldwide.

Citi's principal businesses include retail and commercial banking, credit card and consumer lending products, wealth management and private banking, and a full suite of institutional services.

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