California State Teachers Retirement System Grows Stock Holdings in Citigroup Inc. $C

Key Points

• California State Teachers Retirement System dramatically increased its Citigroup stake by purchasing 357.4 million additional shares, bringing its holdings to 360.2 million shares valued at approximately $50.4 billion.
• Citigroup reported strong quarterly results, with earnings and revenue exceeding analyst expectations; EPS rose to $3.15 and revenue increased 14.5% year over year to $24.77 billion.
• The bank raised its quarterly dividend to $0.67 per share, while analysts maintained a generally positive outlook with a “Moderate Buy” consensus and an average price target of $145.22.

California State Teachers Retirement System boosted its stake in shares of Citigroup Inc. (NYSE:C - Free Report) by 12,834.2% during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 360,205,535 shares of the company's stock after purchasing an additional 357,420,622 shares during the period. California State Teachers Retirement System owned about 21.12% of Citigroup worth $50,414,367,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Norges Bank bought a new position in Citigroup in the fourth quarter worth approximately $2,800,944,000. Bank of New York Mellon Corp purchased a new stake in shares of Citigroup in the 2nd quarter worth $3,244,602,000. Nykredit A S bought a new position in Citigroup in the 2nd quarter worth $458,275,000. Eurizon Capital SGR S.p.A. purchased a new position in Citigroup during the fourth quarter valued at $298,082,000. Finally, SEB Asset Management AB purchased a new stake in Citigroup in the first quarter worth about $252,972,000. Hedge funds and other institutional investors own 71.72% of the company's stock.

Citigroup Trading Up 0.1%

C stock opened at $137.80 on Monday. The company has a debt-to-equity ratio of 1.71, a current ratio of 0.99 and a quick ratio of 0.99. Citigroup Inc. has a 1-year low of $93.66 and a 1-year high of $147.96. The business has a 50 day simple moving average of $135.26 and a two-hundred day simple moving average of $127.55. The company has a market capitalization of $235.03 billion, a price-to-earnings ratio of 14.88, a PEG ratio of 0.62 and a beta of 1.12.

Citigroup (NYSE:C - Get Free Report) last released its quarterly earnings data on Tuesday, July 14th. The company reported $3.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.74 by $0.41. Citigroup had a net margin of 10.23% and a return on equity of 10.15%. The firm had revenue of $24.77 billion for the quarter, compared to analysts' expectations of $23.74 billion. During the same quarter last year, the business posted $1.96 earnings per share. The company's revenue for the quarter was up 14.5% compared to the same quarter last year. Research analysts anticipate that Citigroup Inc. will post 11.21 EPS for the current fiscal year.

Citigroup Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Monday, August 3rd were paid a $0.67 dividend. This represents a $2.68 annualized dividend and a yield of 1.9%. The ex-dividend date was Monday, August 3rd. This is an increase from Citigroup's previous quarterly dividend of $0.60. Citigroup's dividend payout ratio is presently 28.94%.

Key Stories Impacting Citigroup

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: China brokerage expansion: Citi expects Beijing approval for its wholly owned China brokerage business as soon as this month and plans to add several dozen employees. The license could strengthen Citi’s presence in China’s capital-markets and wealth businesses. Citi eyes China brokerage unit licence as soon as this month
• Positive Sentiment: Wealth-management hiring: Citi’s wealth unit added senior executives from Apollo and Bank of America as the division extends its growth streak. The appointments signal continued investment in a business that can generate fee income and diversify results beyond traditional lending. Citi wealth unit adds Apollo, Bank of America alums
• Positive Sentiment: Capital returns remain a support: Analysts highlighted Citi’s aggressive buyback and dividend strategy, supported by stronger earnings, excess capital and business simplification. Continued returns could improve per-share earnings and investor sentiment, although they depend on sustained profitability and regulatory approval. Can Citigroup Sustain Its Aggressive Capital Return Strategy?
• Neutral Sentiment: Rate outlook reset: Citi economists moved their forecast for Federal Reserve rate cuts to 2027 after a stronger U.S. jobs report. Delayed easing could support Citi’s net interest income, but it also raises borrowing costs for consumers and businesses and may pressure credit quality and deal activity. Citigroup delays Fed rate-cut forecast to 2027
• Negative Sentiment: Sanctions-related regulatory risk: A UK regulator reportedly fined a Citi unit over breaches involving Russia sanctions. The financial impact may be manageable, but the incident adds compliance costs and reputational risk as investors monitor Citi’s ongoing control improvements. UK fines Citigroup unit over Russia sanctions breaches

Wall Street Analyst Weigh In

C has been the topic of several recent research reports. Bank of America raised their price objective on Citigroup from $170.00 to $176.00 and gave the stock a "buy" rating in a research note on Tuesday, July 7th. Zacks Research raised shares of Citigroup from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 16th. Morgan Stanley raised their target price on shares of Citigroup from $154.00 to $164.00 and gave the stock an "overweight" rating in a research note on Monday, June 29th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $150.00 price target on shares of Citigroup in a report on Wednesday, July 15th. Finally, UBS Group dropped their price target on shares of Citigroup from $150.00 to $142.00 and set a "neutral" rating for the company in a research report on Monday, August 3rd. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, Citigroup currently has an average rating of "Moderate Buy" and an average price target of $145.22.

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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