Citigroup Sees Unusually High Options Volume (NYSE:C)

Key Points

• Citigroup saw unusually heavy options activity on Wednesday, with traders buying 110,065 call options, about 54% above its normal volume.
• The stock was up 0.5% to $143.74, near its 52-week high, and the company remains supported by solid fundamentals including a market cap of about $245 billion.
• Recent earnings and shareholder returns were strong: Citigroup beat quarterly EPS and revenue estimates, raised revenue 14.1% year over year, and recently paid a $0.60 quarterly dividend while authorizing a $30 billion share buyback.

Citigroup Inc. (NYSE:C - Get Free Report) was the target of some unusual options trading activity on Wednesday. Stock traders acquired 110,065 call options on the company. This is an increase of approximately 54% compared to the typical volume of 71,265 call options.

Citigroup Stock Up 0.5%

Shares of NYSE C traded up $0.75 during midday trading on Wednesday, hitting $143.74. 13,129,029 shares of the stock traded hands, compared to its average volume of 13,504,797. The company has a market cap of $245.16 billion, a PE ratio of 17.81, a P/E/G ratio of 0.63 and a beta of 1.12. Citigroup has a one year low of $77.26 and a one year high of $146.54. The business has a 50 day moving average price of $128.41 and a two-hundred day moving average price of $118.75. The company has a debt-to-equity ratio of 1.59, a quick ratio of 0.99 and a current ratio of 0.99.

Citigroup (NYSE:C - Get Free Report) last issued its earnings results on Tuesday, April 14th. The company reported $3.06 earnings per share for the quarter, topping analysts' consensus estimates of $2.63 by $0.43. Citigroup had a return on equity of 9.19% and a net margin of 9.35%.The company had revenue of $24.63 billion for the quarter, compared to analyst estimates of $22.96 billion. During the same period in the prior year, the firm earned $1.96 earnings per share. Citigroup's revenue for the quarter was up 14.1% on a year-over-year basis. On average, equities analysts predict that Citigroup will post 10.68 EPS for the current year.

Citigroup Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, May 22nd. Shareholders of record on Monday, May 4th were paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend was Monday, May 4th. Citigroup's dividend payout ratio (DPR) is 29.74%.

Citigroup declared that its Board of Directors has authorized a stock buyback 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 shares through open market purchases. Shares repurchase plans are often an indication that the company's board believes its shares are undervalued.

Insider Activity at Citigroup

In other news, Director John Cunningham Dugan sold 2,117 shares of the company's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $125.30, for a total value of $265,260.10. Following the sale, the director directly owned 12,194 shares of the company's stock, valued at approximately $1,527,908.20. This represents a 14.79% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Edward Skyler sold 25,000 shares of the stock in a transaction 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 sale, the insider owned 182,022 shares of the company's stock, valued at approximately $23,919,511.02. This trade represents a 12.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.11% of the stock is currently owned by company insiders.

Institutional Trading of Citigroup

Several institutional investors and hedge funds have recently modified their holdings of the stock. Norges Bank purchased a new stake in Citigroup during the fourth quarter worth about $2,800,944,000. Vanguard Group Inc. raised its position in Citigroup by 3.1% in the fourth quarter. Vanguard Group Inc. now owns 163,239,926 shares of the company's stock worth $19,048,467,000 after acquiring an additional 4,938,923 shares during the period. Capital World Investors grew its position in shares of Citigroup by 6.5% during the 3rd 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. Eurizon Capital SGR S.p.A. bought a new position in shares of Citigroup during the 4th quarter valued at approximately $298,082,000. Finally, SEB Asset Management AB bought a new stake in shares of Citigroup in the 1st quarter worth approximately $252,972,000. 71.72% of the stock is owned by hedge funds and other institutional investors.

Citigroup News Roundup

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citigroup’s credit-card delinquency trends improved in May, suggesting consumer credit quality is holding up even though net charge-offs rose, which points to a mixed but not alarming read on the bank’s lending book. Citigroup's Card Delinquencies Decline, Charge-Offs Rise in May
• Positive Sentiment: Investors are still leaning on Citigroup’s recent momentum after a strong quarterly earnings beat, revenue growth of 14.1% year over year, and ongoing restructuring progress, which have helped keep the stock near multi-year highs. Citigroup Stock at Multi-Year High: Why Investors Should Stay Invested
• Positive Sentiment: The Federal Reserve left interest rates unchanged, which removes immediate policy uncertainty and can support bank sentiment while markets continue to debate the path of rates later this year. Fed Leaves Interest Rates Unchanged, Officials See Possible Rate Hike This Year

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. Royal Bank Of Canada restated an "outperform" rating and set a $139.00 target price on shares of Citigroup in a research report on Wednesday, April 15th. Oppenheimer reissued an "outperform" rating and issued a $145.00 price target on shares of Citigroup in a research note on Friday, May 8th. Truist Financial set a $147.00 price target on Citigroup in a report on Friday, May 1st. Morgan Stanley raised their price objective on shares of Citigroup from $140.00 to $144.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 15th. Finally, Zacks Research lowered shares of Citigroup from a "strong-buy" rating to a "hold" rating in a research note on Friday, February 20th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $137.62.

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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