Arax Advisory Partners Decreases Stock Position in Citigroup Inc. $C

Key Points

• Arax Advisory Partners cut its Citigroup stake by 75.3% in the fourth quarter, selling 139,502 shares and leaving it with 45,776 shares valued at about $5.34 million.
• Wall Street sentiment remains positive, with several analysts raising price targets and the stock holding a Moderate Buy consensus rating and an average target of $137.62.
• Citigroup posted strong recent results, beating quarterly EPS and revenue estimates, and it also announced a $30 billion share buyback along with a quarterly dividend.

Arax Advisory Partners reduced its position in Citigroup Inc. (NYSE:C - Free Report) by 75.3% in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 45,776 shares of the company's stock after selling 139,502 shares during the period. Arax Advisory Partners' holdings in Citigroup were worth $5,342,000 at the end of the most recent reporting period.

A number of other hedge funds also recently added to or reduced their stakes in C. Richards Merrill & Peterson Inc. bought a new stake in shares of Citigroup during the 4th quarter valued at $28,000. Dunhill Financial LLC boosted its holdings in Citigroup by 92.2% in the 3rd quarter. Dunhill Financial LLC now owns 319 shares of the company's stock worth $32,000 after buying an additional 153 shares during the period. Luken Investment Analytics LLC bought a new position in Citigroup in the 4th quarter worth $32,000. High Note Wealth LLC boosted its holdings in Citigroup by 107.7% in the 4th quarter. High Note Wealth LLC now owns 270 shares of the company's stock worth $32,000 after buying an additional 140 shares during the period. Finally, Entrust Financial LLC bought a new position in Citigroup in the 4th quarter worth $34,000. 71.72% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on C shares. Keefe, Bruyette & Woods upped their target price on shares of Citigroup from $140.00 to $153.00 and gave the stock an "outperform" rating in a report on Friday, May 8th. Wells Fargo & Company upped their target price on shares of Citigroup from $160.00 to $162.00 and gave the stock an "overweight" rating in a report on Wednesday, April 29th. Jefferies Financial Group assumed coverage on shares of Citigroup in a report on Thursday, March 26th. They set a "buy" rating and a $135.00 price objective for the company. Evercore set a $139.00 price objective on shares of Citigroup in a report on Wednesday, April 15th. Finally, JPMorgan Chase & Co. increased their price objective on shares of Citigroup from $131.00 to $135.50 and gave the company an "overweight" rating in a report on Thursday, April 30th. 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 stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $137.62.

Citigroup News Summary

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citigroup launched tokenized Digital Depositary Receipts, creating a new blockchain-based way for clients to gain exposure to private companies and for issuers to tap liquidity, reinforcing Citi’s push into next-generation capital markets. Citigroup Is Rolling Out Tokenized Shares of Private Companies
• Positive Sentiment: Related coverage said Citi is expanding access to private markets with tokenized private-share trading, which could open a new fee-generating business line and strengthen its innovation story with large clients. Citigroup Expands Access to Private Markets With Tokenized Depositary Receipts
• Positive Sentiment: Trump praised Citigroup and CEO Jane Fraser as a top M&A adviser, which helped fuel momentum and reinforced confidence in Citi’s investment banking comeback. Citigroup shares outperform down market after Trump endorsement
• Positive Sentiment: Citi also continued building out its consumer and retail investment banking franchise with a new managing director hire, suggesting management is still investing in growth areas. Citi hires Ryan Beaupré as MD in consumer and retail investment banking push
• Neutral Sentiment: Citi completed the sale of its Polish consumer banking business, continuing its multi-year retreat from underperforming overseas markets. This supports simplification, but it also shows ongoing shrinkage in some international operations. Citi's overseas retreat advances with sale of Polish business
• Neutral Sentiment: Reports that regulators are probing banks’ use of AI could raise compliance scrutiny for the sector, but there was no Citi-specific issue mentioned. Bank Regulators Probe Industry Use of AI

Insider Transactions at Citigroup

In related news, Director John Cunningham Dugan sold 2,117 shares of the 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 sale, the director directly owned 12,194 shares of the company's stock, valued at $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 this hyperlink. Also, insider Edward Skyler sold 25,000 shares of the stock in a transaction dated 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 completion of the sale, the insider directly owned 182,022 shares in the company, valued at $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. Corporate insiders own 0.11% of the company's stock.

Citigroup Stock Down 0.1%

Shares of NYSE C opened at $139.68 on Monday. The firm's 50-day moving average price is $127.34 and its 200-day moving average price is $118.19. The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 1.59. The stock has a market capitalization of $238.23 billion, a price-to-earnings ratio of 17.31, a P/E/G ratio of 0.62 and a beta of 1.12. Citigroup Inc. has a 12-month low of $76.11 and a 12-month high of $141.12.

Citigroup (NYSE:C - Get Free Report) last announced its earnings results on Tuesday, April 14th. The company reported $3.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.63 by $0.43. The firm had revenue of $24.63 billion for 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%. The business's revenue was up 14.1% compared to the same quarter last year. During the same period in the prior year, the company earned $1.96 EPS. On average, equities research analysts anticipate that Citigroup Inc. will post 10.68 EPS for the current fiscal year.

Citigroup Announces Dividend

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

Citigroup declared that its Board of Directors has approved a share buyback program on Thursday, May 7th that authorizes the company to buyback $30.00 billion in outstanding shares. This buyback authorization authorizes the company to repurchase up to 13.7% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's board believes its stock is undervalued.

Citigroup 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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