Erste Group Bank Raises Earnings Estimates for Citigroup

Key Points

• Erste Group Bank raised Citigroup’s FY2026 EPS estimate to $11.18 from $11.00 and initiated a FY2027 forecast of $12.80, broadly aligning with expectations for continued earnings growth.
• Citigroup’s latest quarterly results exceeded estimates, with EPS of $3.15 versus the $2.74 consensus and revenue of $24.75 billion, up 14.5% year over year.
• The bank strengthened shareholder returns by increasing its quarterly dividend to $0.67 from $0.60 and maintaining authorization for a $30 billion share buyback.

Citigroup Inc. (NYSE:C - Free Report) - Equities research analysts at Erste Group Bank raised their FY2026 earnings per share (EPS) estimates for Citigroup in a report issued on Monday, July 27th. Erste Group Bank analyst H. Engel now forecasts that the company will post earnings per share of $11.18 for the year, up from their previous forecast of $11.00. The consensus estimate for Citigroup's current full-year earnings is $11.20 per share. Erste Group Bank also issued estimates for Citigroup's FY2027 earnings at $12.80 EPS.

Citigroup (NYSE:C - Get Free Report) last announced its quarterly earnings results on Tuesday, July 14th. The company reported $3.15 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.74 by $0.41. Citigroup had a net margin of 10.23% and a return on equity of 10.15%. The company had revenue of $24.75 billion for the quarter, compared to analysts' expectations of $23.74 billion. During the same quarter in the previous year, the business posted $1.96 EPS. Citigroup's revenue was up 14.5% compared to the same quarter last year.

C has been the topic of several other research reports. UBS Group upped their target price on shares of Citigroup from $134.00 to $150.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 7th. Keefe, Bruyette & Woods raised their price target on shares of Citigroup from $140.00 to $153.00 and gave the company an "outperform" rating in a research report on Friday, May 8th. Piper Sandler restated an "overweight" rating and issued a $145.00 price objective (up from $125.00) on shares of Citigroup in a report on Wednesday, April 15th. Wells Fargo & Company upped their price objective on Citigroup from $162.00 to $165.00 and gave the company an "overweight" rating in a research report on Thursday, June 18th. Finally, Argus set a $150.00 target price on Citigroup in a research note on Wednesday, July 15th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $145.67.

Citigroup Stock Down 0.4%

NYSE:C opened at $132.53 on Wednesday. The company has a debt-to-equity ratio of 1.71, a quick ratio of 0.99 and a current ratio of 0.99. The firm has a market cap of $226.04 billion, a P/E ratio of 14.31, a P/E/G ratio of 0.60 and a beta of 1.11. Citigroup has a fifty-two week low of $87.94 and a fifty-two week high of $147.96. The firm has a 50-day simple moving average of $135.48 and a two-hundred day simple moving average of $123.98.

Citigroup announced that its board has approved a stock buyback plan on Thursday, May 7th that allows the company to buyback $30.00 billion in shares. This buyback authorization allows the company to buy up to 13.7% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's leadership believes its shares are undervalued.

Citigroup Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Monday, August 3rd will be given a dividend of $0.67 per share. This represents a $2.68 dividend on an annualized basis and a yield of 2.0%. This is a positive change from Citigroup's previous quarterly dividend of $0.60. The ex-dividend date is Monday, August 3rd. Citigroup's payout ratio is currently 25.92%.

Insiders Place Their Bets

In related news, Director John Cunningham Dugan sold 2,117 shares of the firm's stock in a transaction that occurred 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 owned 12,194 shares in the company, valued at approximately $1,527,908.20. This trade represents a 14.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.11% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Citigroup

A number of hedge funds have recently added to or reduced their stakes in the stock. Ballast Inc. bought a new stake in shares of Citigroup in the second quarter worth $675,000. Regent Peak Wealth Advisors LLC lifted its holdings in Citigroup by 8.2% in the second quarter. Regent Peak Wealth Advisors LLC now owns 4,567 shares of the company's stock valued at $639,000 after acquiring an additional 346 shares during the period. Hudson Value Partners LLC purchased a new position in Citigroup in the second quarter worth about $600,000. FORM Wealth Advisors LLC bought a new stake in shares of Citigroup during the 2nd quarter valued at about $205,000. Finally, Tema ETFs LLC grew its stake in shares of Citigroup by 10.6% during the 2nd quarter. Tema ETFs LLC now owns 36,447 shares of the company's stock valued at $5,101,000 after purchasing an additional 3,480 shares during the period. 71.72% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Citigroup

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citigroup raised its quarterly dividend 11.7% to $0.67 per share from $0.60 after reporting its strongest quarterly revenue in roughly a decade. The increase supports the bank’s shareholder-return story and reflects confidence following its strong second-quarter performance. This High-Yield Bank Stock Just Raised Its Dividend by 11.7%
• Positive Sentiment: Erste Group Bank lifted its Citigroup EPS forecasts to $11.18 for fiscal 2026 and $12.80 for fiscal 2027, up from $11.00 and $12.74, respectively. The revisions reinforce expectations for continued earnings growth, although the 2026 estimate is broadly in line with the $11.20 consensus.
• Positive Sentiment: Citigroup launched Citi Consolidate, an invoice-processing and payables solution integrated with Infor Nexus. The product expands the bank’s digital treasury and supply-chain offering and could deepen commercial-client relationships over time. Citi Is Now Live With a Trade Digitization Solution Integrating Supply Chain Solutions
• Positive Sentiment: The bank launched structured notes tied to the S&P 500 Futures Index offering 260% upside participation and a $1.47 billion trigger autocallable product linked to an oil-and-gas ETF. These transactions highlight ongoing capital-markets activity and potential fee generation, though their direct effect on earnings is likely limited. Citigroup Launches Barrier Notes
• Neutral Sentiment: Citigroup expects the Federal Reserve to hold interest rates steady, assigning a 33% probability to a hike. The outlook provides limited near-term direction because rates influence both bank net-interest income and trading, credit and capital-markets activity. Citigroup Expects Fed to Maintain Rates
• Negative Sentiment: A former Citigroup managing director received a 30-year prison sentence for sex crimes. The conduct was reportedly by a former employee rather than a current corporate action, but the headline may create short-term reputational risk. Ex-Citigroup Managing Director Gets 30 Years for Sex Crimes

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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