Banque Cantonale Vaudoise Increases Stake in Citigroup Inc. $C

Key Points

• Banque Cantonale Vaudoise boosted its Citigroup stake by 21.4% in the fourth quarter, ending with 63,396 shares valued at about $7.4 million.
• Citigroup’s recent business updates were mostly positive, including a €15 billion private capital program with BlackRock’s HPS, improved April card delinquency and charge-off trends, and approval to launch a wholly foreign-owned securities firm in mainland China.
• The company also reported solid results and shareholder returns: Q1 earnings beat estimates, and Citi announced a $30 billion stock buyback plus a quarterly dividend of $0.60 per share.

Banque Cantonale Vaudoise grew its stake in shares of Citigroup Inc. (NYSE:C - Free Report) by 21.4% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 63,396 shares of the company's stock after purchasing an additional 11,157 shares during the quarter. Banque Cantonale Vaudoise's holdings in Citigroup were worth $7,398,000 at the end of the most recent quarter.

Several other hedge funds also recently made changes to their positions in the company. Elmwood Wealth Management Inc. raised its holdings in Citigroup by 1.3% during the 4th quarter. Elmwood Wealth Management Inc. now owns 6,845 shares of the company's stock valued at $799,000 after buying an additional 85 shares during the last quarter. Park Place Capital Corp increased its position in shares of Citigroup by 16.7% in the fourth quarter. Park Place Capital Corp now owns 595 shares of the company's stock valued at $69,000 after acquiring an additional 85 shares during the period. D.B. Root & Company LLC raised its stake in shares of Citigroup by 2.8% during the fourth quarter. D.B. Root & Company LLC now owns 3,191 shares of the company's stock valued at $372,000 after acquiring an additional 87 shares during the last quarter. Cornerstone Wealth Management LLC boosted its holdings in shares of Citigroup by 0.8% during the fourth quarter. Cornerstone Wealth Management LLC now owns 10,393 shares of the company's stock worth $1,213,000 after purchasing an additional 87 shares during the period. Finally, N.E.W. Advisory Services LLC grew its stake in shares of Citigroup by 14.9% in the fourth quarter. N.E.W. Advisory Services LLC now owns 703 shares of the company's stock worth $82,000 after purchasing an additional 91 shares during the last quarter. 71.72% of the stock is owned by hedge funds and other institutional investors.

Citigroup News Summary

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citigroup launched a €15 billion private capital program with BlackRock’s HPS to expand direct lending across EMEA, a move that could strengthen fee-based revenue and deepen its presence in private credit. Article Title
• Positive Sentiment: Citi reported better April card delinquency and charge-off trends year over year, suggesting some improvement in consumer credit quality. Article Title
• Positive Sentiment: Citi received final approval to launch a wholly foreign-owned securities firm in mainland China, expanding its ability to offer investment banking and brokerage services directly in a major market. Article Title
• Positive Sentiment: Citigroup hired former UK lawmaker Chuka Umunna as managing director in its UK investment banking division, a small but notable talent win that may support its EMEA franchise. Article Title
• Neutral Sentiment: Citi’s call that 30-year Treasury yields may next focus on 5.5% reflects its macro view, but it is not a direct operating driver for the bank. Article Title
• Negative Sentiment: CFRA reportedly downgraded Citigroup to Hold, which may be tempering enthusiasm after a strong run in the shares. Article Title

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. Weiss Ratings reiterated a "buy (b)" rating on shares of Citigroup in a report on Monday, April 20th. Keefe, Bruyette & Woods lifted their price target on shares of Citigroup from $140.00 to $153.00 and gave the company an "outperform" rating in a report on Friday, May 8th. Barclays raised their target price on shares of Citigroup from $146.00 to $154.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 15th. Wall Street Zen raised shares of Citigroup from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Finally, Jefferies Financial Group assumed coverage on Citigroup in a report on Thursday, March 26th. They set a "buy" rating and a $135.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, Citigroup presently has an average rating of "Moderate Buy" and an average price target of $137.62.

Insiders Place Their Bets

In related news, Director John Cunningham Dugan sold 2,117 shares of Citigroup stock in a transaction on Friday, May 8th. The stock was sold at an average price of $125.30, for a total value of $265,260.10. Following the completion of the sale, the director owned 12,194 shares of the company's stock, valued at $1,527,908.20. The trade was a 14.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Edward Skyler sold 25,000 shares of the company's stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $131.41, for a total value 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 position. The SEC filing for this sale provides additional information. 0.11% of the stock is currently owned by insiders.

Citigroup Price Performance

Shares of NYSE C opened at $119.96 on Wednesday. The firm has a market cap of $204.60 billion, a P/E ratio of 14.87, a PEG ratio of 0.55 and a beta of 1.14. Citigroup Inc. has a twelve month low of $71.65 and a twelve month high of $135.29. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 1.59. The company has a 50 day moving average of $120.03 and a 200 day moving average of $114.43.

Citigroup (NYSE:C - Get Free Report) last posted its earnings results on Tuesday, April 14th. The company reported $3.06 EPS 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 business had revenue of $24.63 billion during the quarter, compared to analyst estimates of $22.96 billion. During the same quarter last year, the company earned $1.96 EPS. The company's quarterly revenue was up 14.1% compared to the same quarter last year. As a group, research analysts expect that Citigroup Inc. will post 10.65 EPS for the current fiscal year.

Citigroup Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, May 22nd. Shareholders of record on Monday, May 4th will be given a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Monday, May 4th. Citigroup's payout ratio is 29.74%.

Citigroup declared that its board has authorized a stock buyback program on Thursday, May 7th that allows the company to repurchase $30.00 billion in outstanding shares. This repurchase authorization allows the company to purchase up to 13.7% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's management believes its shares are undervalued.

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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