Citigroup (NYSE:C) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Citigroup from “hold” to “buy,” adding to a generally positive analyst backdrop. The stock now carries an average rating of “Moderate Buy” with a consensus price target of $137.62.
• Citigroup reported strong first-quarter results, earning $3.06 per share versus $2.63 expected and generating $24.63 billion in revenue, which topped estimates. Revenue rose 14.1% year over year.
• The bank’s board authorized a $30 billion share buyback, equal to up to 13.7% of outstanding shares. Management also set a long-term profitability target of 11% to 13% adjusted return on tangible common equity for 2027-2028.

Citigroup (NYSE:C - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday.

Several other equities analysts have also recently weighed in on the stock. Zacks Research cut shares of Citigroup from a "strong-buy" rating to a "hold" rating in a research note on Friday, February 20th. Keefe, Bruyette & Woods increased their price objective on shares of Citigroup from $140.00 to $153.00 and gave the company an "outperform" rating in a research report on Friday. Morgan Stanley increased their price objective on shares of Citigroup from $140.00 to $144.00 and gave the company an "overweight" rating in a research report on Wednesday, April 15th. Wells Fargo & Company increased their price objective on shares of Citigroup from $160.00 to $162.00 and gave the company an "overweight" rating in a research report on Wednesday, April 29th. Finally, UBS Group reiterated a "neutral" rating and set a $132.00 price objective on shares of Citigroup in a research report on Thursday, January 15th. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $137.62.

Citigroup Stock Performance

C opened at $125.52 on Friday. The stock has a market capitalization of $215.26 billion, a price-to-earnings ratio of 15.55, a PEG ratio of 0.58 and a beta of 1.14. The company has a fifty day moving average of $117.98 and a 200 day moving average of $113.01. Citigroup has a fifty-two week low of $71.29 and a fifty-two week high of $135.29. The company has a debt-to-equity ratio of 1.59, a quick ratio of 1.00 and a current ratio of 0.99.

Citigroup (NYSE:C - Get Free Report) last posted its earnings results on Tuesday, April 14th. The company reported $3.06 earnings per share for the quarter, beating the consensus estimate of $2.63 by $0.43. The company had revenue of $24.63 billion during the quarter, compared to analysts' expectations of $22.96 billion. Citigroup had a net margin of 9.35% and a return on equity of 9.19%. Citigroup's quarterly revenue was up 14.1% on a year-over-year basis. During the same period last year, the company posted $1.96 earnings per share. As a group, sell-side analysts forecast that Citigroup will post 10.65 earnings per share for the current fiscal year.

Citigroup declared that its board has authorized a stock buyback plan on Thursday, May 7th that authorizes the company to buyback $30.00 billion in outstanding shares. This buyback authorization authorizes the company to reacquire up to 13.7% of its shares through open market purchases. Shares buyback plans are often an indication that the company's board believes its stock is undervalued.

Insider Activity at Citigroup

In other news, insider Edward Skyler sold 25,000 shares of the business's stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $131.41, for a total transaction of $3,285,250.00. Following the transaction, the insider owned 182,022 shares of the company's stock, valued at approximately $23,919,511.02. The trade was a 12.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Cantu Ernesto Torres sold 43,173 shares of the stock in a transaction on Friday, February 13th. The shares were sold at an average price of $111.09, for a total transaction of $4,796,088.57. Following the completion of the sale, the insider directly owned 45,835 shares in the company, valued at approximately $5,091,810.15. This represents a 48.50% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 92,318 shares of company stock worth $10,764,814. Corporate insiders own 0.11% of the company's stock.

Institutional Investors Weigh In On Citigroup

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in shares of Citigroup by 3.1% in the fourth quarter. Vanguard Group Inc. now owns 163,239,926 shares of the company's stock valued at $19,048,467,000 after acquiring an additional 4,938,923 shares during the period. Capital World Investors raised its stake in shares of Citigroup by 6.5% in the third quarter. Capital World Investors now owns 47,262,626 shares of the company's stock valued at $4,797,292,000 after acquiring an additional 2,871,074 shares during the period. Geode Capital Management LLC raised its stake in shares of Citigroup by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 43,252,372 shares of the company's stock valued at $5,036,712,000 after acquiring an additional 189,548 shares during the period. Franklin Resources Inc. raised its stake in shares of Citigroup by 4.0% in the fourth quarter. Franklin Resources Inc. now owns 34,196,783 shares of the company's stock valued at $3,990,422,000 after acquiring an additional 1,326,224 shares during the period. Finally, Fisher Asset Management LLC raised its stake in shares of Citigroup by 2.6% in the fourth quarter. Fisher Asset Management LLC now owns 33,887,285 shares of the company's stock valued at $3,954,307,000 after acquiring an additional 846,772 shares during the period. Hedge funds and other institutional investors own 71.72% of the company's stock.

Citigroup News Roundup

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citigroup unveiled a new $30 billion share buyback plan, a strong signal that management sees the stock as undervalued and has confidence in its capital position. RTT News
• Positive Sentiment: The company set a profitability target of 11% to 13% adjusted return on tangible common equity for 2027-2028, with further improvement expected by 2031, reinforcing the turnaround story. Reuters
• Positive Sentiment: Keefe, Bruyette & Woods raised its price target on Citigroup to $153 from $140 and kept an outperform rating, showing Wall Street still sees meaningful upside. Benzinga
• Neutral Sentiment: CEO Jane Fraser said the global economy remains resilient, but warned that the market may not yet fully understand the second- and third-order effects of the Iran war and ongoing inflation pressures. YouTube/CNBC
• Negative Sentiment: Some investors viewed the new profit targets as too modest, suggesting Citigroup may still trail peers longer than hoped despite the overhaul. Quartz

About Citigroup

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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