Citigroup Inc. $C is ACR Alpine Capital Research LLC's 5th Largest Position

Key Points

• ACR Alpine Capital Research trimmed its Citigroup stake slightly in the fourth quarter but still holds 3.59 million shares, making Citigroup its 5th largest position and about 6.5% of its portfolio.
• Citigroup reported better-than-expected quarterly results, with EPS of $3.06 versus $2.63 expected and revenue of $24.63 billion, up 14.1% year over year. Analysts now have a consensus Moderate Buy rating with an average target price of $137.62.
• The bank announced a $30 billion share buyback program and a quarterly dividend of $0.60 per share, reinforcing management’s capital-return focus. A small amount of insider selling was also disclosed, though it does not appear to materially change the investment outlook.

ACR Alpine Capital Research LLC cut its stake in Citigroup Inc. (NYSE:C - Free Report) by 0.3% in the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 3,589,696 shares of the company's stock after selling 11,594 shares during the period. Citigroup comprises approximately 6.5% of ACR Alpine Capital Research LLC's portfolio, making the stock its 5th largest position. ACR Alpine Capital Research LLC owned about 0.20% of Citigroup worth $418,882,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in C. Donaldson Capital Management LLC bought a new stake in Citigroup in the third quarter worth $58,994,000. Kovitz Investment Group Partners LLC boosted its holdings in shares of Citigroup by 17.3% during the third quarter. Kovitz Investment Group Partners LLC now owns 663,416 shares of the company's stock worth $67,337,000 after purchasing an additional 98,082 shares during the period. Gunderson Capital Management Inc. purchased a new stake in shares of Citigroup during the fourth quarter worth about $7,165,000. Brighton Jones LLC boosted its holdings in shares of Citigroup by 166.9% during the fourth quarter. Brighton Jones LLC now owns 19,990 shares of the company's stock worth $1,407,000 after purchasing an additional 12,499 shares during the period. Finally, Adell Harriman & Carpenter Inc. boosted its holdings in shares of Citigroup by 12.7% during the third quarter. Adell Harriman & Carpenter Inc. now owns 102,255 shares of the company's stock worth $10,379,000 after purchasing an additional 11,512 shares during the period. 71.72% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on C shares. Oppenheimer reiterated an "outperform" rating and set a $145.00 target price on shares of Citigroup in a report on Friday, May 8th. Zacks Research lowered shares of Citigroup from a "strong-buy" rating to a "hold" rating in a report on Friday, February 20th. The Goldman Sachs Group increased their target price on shares of Citigroup from $137.00 to $151.00 and gave the stock a "buy" rating in a report on Wednesday, April 15th. Morgan Stanley increased their target price on shares of Citigroup from $140.00 to $144.00 and gave the stock an "overweight" rating in a report on Wednesday, April 15th. Finally, Barclays increased their target price on shares of Citigroup from $146.00 to $154.00 and gave the stock an "overweight" rating in a report on Wednesday, April 15th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, Citigroup has an average rating of "Moderate Buy" and an average target price of $137.62.

Citigroup Price Performance

C stock opened at $124.77 on Friday. Citigroup Inc. has a 1 year low of $71.65 and a 1 year high of $135.29. The company has a market cap of $212.81 billion, a P/E ratio of 15.46, a PEG ratio of 0.56 and a beta of 1.14. The firm has a 50-day moving average of $119.26 and a 200 day moving average of $113.97. The company has a debt-to-equity ratio of 1.59, a current ratio of 0.99 and a quick ratio of 0.99.

Citigroup (NYSE:C - Get Free Report) last released its quarterly earnings results on Tuesday, April 14th. The company reported $3.06 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.63 by $0.43. Citigroup had a net margin of 9.35% and a return on equity of 9.19%. The company had revenue of $24.63 billion during the quarter, compared to the consensus estimate of $22.96 billion. During the same period in the prior year, the firm earned $1.96 earnings per share. Citigroup's revenue was up 14.1% on a year-over-year basis. On average, sell-side analysts forecast that Citigroup Inc. will post 10.65 EPS for the current year.

Citigroup Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 22nd. Investors of record on Monday, May 4th will be paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Monday, May 4th. Citigroup's dividend payout ratio is presently 29.74%.

Citigroup announced that its Board of Directors has authorized a share 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 buy up to 13.7% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its shares are undervalued.

Insider Transactions at Citigroup

In other Citigroup news, Director John Cunningham Dugan sold 2,117 shares of the company's 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 owned 12,194 shares in the company, valued at approximately $1,527,908.20. This represents a 14.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Edward Skyler sold 25,000 shares of the company's 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 owned 182,022 shares in the company, 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 owned by corporate insiders.

Key Citigroup News

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citigroup is getting credit for its strong earnings beat, with the bank reporting better-than-expected profit and revenue last quarter, which supports the view that operating momentum remains solid.
• Positive Sentiment: The company recently unveiled a $30 billion share buyback authorization, signaling management confidence and a larger return of capital to shareholders, which investors typically view favorably.
• Positive Sentiment: News that Citi plans to increase headcount by about 10% in its Asia-Pacific prime brokerage unit suggests continued expansion in a high-value business line and reinforces the growth narrative. Citigroup to boost Asia prime brokerage staff by 10% this year
• Positive Sentiment: Reports that Citigroup is weighing a broader Asia expansion and a bigger role in U.S.-China business show management is still focused on long-term international growth opportunities. Citigroup Weighs Asia Expansion And US China Role For Future Growth
• Neutral Sentiment: Analyst commentary and follow-up articles are mostly reflecting on Citi’s strong post-earnings run and whether the stock can sustain it, but they do not appear to be new fundamental catalysts. Citigroup (C) Down 5.8% Since Last Earnings Report: Can It Rebound?
• Neutral Sentiment: A Citigroup director sold a modest number of shares, which may mildly pressure sentiment, but the transaction was relatively small and does not materially change the investment thesis. SEC Director Sale Filing

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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