Citigroup Inc. $C Shares Acquired by Wellington Management Group LLP

Key Points

• Wellington Management increased its Citigroup stake by 156.3% in the second quarter, purchasing 252,974 additional shares for a total holding of 414,839 shares valued at approximately $58.1 million. Institutional investors collectively own 71.72% of the company.
• Citigroup reported stronger-than-expected quarterly results, with EPS of $3.15 versus the $2.74 consensus estimate and revenue of $24.77 billion, up 14.5% year over year. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $145.22.
• The company is increasing shareholder returns through a $30 billion share-repurchase authorization and a quarterly dividend raised to $0.67 per share, equivalent to a 1.9% annual yield.

Wellington Management Group LLP lifted its stake in Citigroup Inc. (NYSE:C - Free Report) by 156.3% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 414,839 shares of the company's stock after purchasing an additional 252,974 shares during the quarter. Wellington Management Group LLP's holdings in Citigroup were worth $58,061,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also recently bought and sold shares of the company. Paladin Partners LLC acquired a new position in shares of Citigroup in the second quarter worth about $27,000. Pin Oak Investment Advisors Inc. purchased a new stake in shares of Citigroup in the 2nd quarter valued at approximately $29,000. Mcguire Capital Advisors Inc. acquired a new position in Citigroup in the 4th quarter worth approximately $25,000. Whipplewood Advisors LLC purchased a new position in Citigroup during the 1st quarter worth approximately $25,000. Finally, TD Capital Management LLC purchased a new position in Citigroup during the 4th quarter worth approximately $28,000. Hedge funds and other institutional investors own 71.72% of the company's stock.

Key Stories Impacting Citigroup

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Buybacks and dividends support the stock: Citigroup is accelerating share repurchases and dividend payments as stronger earnings, excess capital and business simplification improve its ability to return money to shareholders. The strategy could enhance per-share earnings and reinforce confidence in management’s turnaround plan. Can Citigroup Sustain Its Aggressive Capital Return Strategy?
• Positive Sentiment: Blockchain payments provide a growth catalyst: Citi’s Services business processed live transactions on Swift’s blockchain-based ledger, making it the first U.S. bank to conduct native ledger transactions through the initiative. The move strengthens Citi’s positioning in always-on, cross-border payments and could create longer-term revenue opportunities with institutional clients. Citi’s Services Business Pioneers Live Transactions on Swift’s Ledger
• Positive Sentiment: AI-driven expense controls may improve profitability: Citi is using artificial intelligence to review and renegotiate outside law-firm billing. Although the savings potential was not quantified, lower legal expenses could support operating efficiency across capital-markets, compliance and banking operations. Citigroup Uses AI To Push Law Firms On Fees
• Neutral Sentiment: Currency view signals a changing rate outlook: Citi recommended shorting the U.S. dollar against the Canadian dollar, anticipating that stretched U.S.-Canada interest-rate differentials will reverse. The call highlights potential shifts in Federal Reserve expectations but has limited direct impact on Citigroup’s fundamental earnings. Citi goes short USD/CAD
• Negative Sentiment: UK sanctions-related penalty remains a reputational and compliance risk: Citi was fined £4.7 million for historical breaches of Russian sanctions at its London branch. The financial cost is modest relative to Citi’s size, but the action underscores ongoing regulatory and control risks. Citigroup Fined £4.7 Million in UK for Russia Sanctions Breaches

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. Keefe, Bruyette & Woods increased their target price on Citigroup from $140.00 to $153.00 and gave the company an "outperform" rating in a report on Friday, May 8th. Oppenheimer lowered Citigroup from an "outperform" rating to a "market perform" rating in a research report on Tuesday, June 30th. Truist Financial reduced their price objective on Citigroup from $158.00 to $154.00 and set a "buy" rating for the company in a research note on Wednesday, July 15th. Zacks Research upgraded Citigroup from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 16th. Finally, Wall Street Zen downgraded Citigroup from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Two analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $145.22.

Citigroup Trading Up 2.8%

Citigroup stock opened at $138.10 on Friday. The company's fifty day moving average price is $135.33 and its two-hundred day moving average price is $127.36. 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 one year low of $93.66 and a one year high of $147.96. The company has a market capitalization of $235.54 billion, a price-to-earnings ratio of 14.91, a PEG ratio of 0.60 and a beta of 1.12.

Citigroup (NYSE:C - Get Free Report) last announced its 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 return on equity of 10.15% and a net margin of 10.23%.The firm had revenue of $24.77 billion during the quarter, compared to analysts' expectations of $23.74 billion. During the same quarter in the prior year, the business earned $1.96 earnings per share. The company's revenue was up 14.5% on a year-over-year basis. On average, analysts forecast that Citigroup Inc. will post 11.21 earnings per share for the current fiscal year.

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

Citigroup Increases Dividend

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

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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