Citigroup Inc. $C Stake Decreased by Heritage Investors Management Corp

Key Points

• Heritage Investors Management Corp trimmed its Citigroup stake by 2.8% in the fourth quarter, selling 8,379 shares and leaving it with 296,197 shares valued at about $34.6 million.
• Several other hedge funds increased their Citigroup positions, and institutional investors now own 71.72% of the stock, showing continued strong institutional interest.
• Citigroup reported stronger-than-expected quarterly results, raised support from analysts, and also announced a $30 billion share repurchase plan along with a quarterly dividend of $0.60 per share.

Heritage Investors Management Corp lessened its holdings in shares of Citigroup Inc. (NYSE:C - Free Report) by 2.8% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 296,197 shares of the company's stock after selling 8,379 shares during the period. Heritage Investors Management Corp's holdings in Citigroup were worth $34,563,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also made changes to their positions in the stock. Resolute Wealth Strategies LLC increased its stake in shares of Citigroup by 14.7% during the fourth quarter. Resolute Wealth Strategies LLC now owns 2,602 shares of the company's stock valued at $304,000 after acquiring an additional 333 shares during the period. FourThought Financial Partners LLC increased its stake in shares of Citigroup by 7.8% during the fourth quarter. FourThought Financial Partners LLC now owns 5,518 shares of the company's stock valued at $644,000 after acquiring an additional 400 shares during the period. Global Retirement Partners LLC increased its stake in shares of Citigroup by 58.6% during the fourth quarter. Global Retirement Partners LLC now owns 64,485 shares of the company's stock valued at $7,525,000 after acquiring an additional 23,837 shares during the period. Algebris UK Ltd. increased its stake in shares of Citigroup by 13.3% during the fourth quarter. Algebris UK Ltd. now owns 264,738 shares of the company's stock valued at $30,907,000 after acquiring an additional 31,036 shares during the period. Finally, Verde Servicos Internacionais S.A. acquired a new position in shares of Citigroup during the fourth quarter valued at approximately $9,471,000. Institutional investors and hedge funds own 71.72% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have issued reports on C shares. Wall Street Zen upgraded shares of Citigroup from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Morgan Stanley lifted their price target on shares of Citigroup from $140.00 to $144.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 15th. Truist Financial set a $147.00 price target on shares of Citigroup in a research report on Friday, May 1st. Piper Sandler restated an "overweight" rating and issued a $145.00 price target (up from $125.00) on shares of Citigroup in a research report on Wednesday, April 15th. Finally, Jefferies Financial Group started coverage on shares of Citigroup in a research report on Thursday, March 26th. They issued a "buy" rating and a $135.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $137.62.

Insider Activity at Citigroup

In other Citigroup news, insider Edward Skyler sold 25,000 shares of Citigroup stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $131.41, for a total transaction of $3,285,250.00. Following the transaction, the insider directly owned 182,022 shares in the company, valued at approximately $23,919,511.02. The trade was a 12.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director John Cunningham Dugan sold 2,117 shares of Citigroup stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $125.30, for a total transaction of $265,260.10. Following the transaction, the director owned 12,194 shares in the company, valued at approximately $1,527,908.20. The trade was a 14.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.11% of the company's stock.

Citigroup Trading Up 0.3%

NYSE C opened at $125.19 on Friday. Citigroup Inc. has a twelve month low of $71.65 and a twelve month high of $135.29. The company has a debt-to-equity ratio of 1.59, a quick ratio of 0.99 and a current ratio of 0.99. The stock has a market cap of $213.51 billion, a price-to-earnings ratio of 15.51, a PEG ratio of 0.56 and a beta of 1.14. The firm's 50 day moving average price is $120.72 and its two-hundred day moving average price is $114.77.

Citigroup (NYSE:C - Get Free Report) last posted its quarterly earnings data on Tuesday, April 14th. The company reported $3.06 earnings per share for the quarter, topping the consensus estimate of $2.63 by $0.43. Citigroup had a net margin of 9.35% and a return on equity of 9.19%. The firm had revenue of $24.63 billion for the quarter, compared to analysts' expectations of $22.96 billion. During the same period in the previous year, the company posted $1.96 EPS. The company's quarterly revenue was up 14.1% compared to the same quarter last year. Equities analysts anticipate that Citigroup Inc. will post 10.65 EPS for the current year.

Citigroup Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 22nd. Shareholders of record on Monday, May 4th will be given a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a yield of 1.9%. The ex-dividend date is Monday, May 4th. Citigroup's payout ratio is presently 29.74%.

Citigroup announced that its board has initiated a share repurchase plan on Thursday, May 7th that permits the company to buyback $30.00 billion in shares. This buyback authorization permits the company to reacquire up to 13.7% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's management believes its shares are undervalued.

Key Headlines Impacting Citigroup

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citigroup shareholders approved an expanded stock incentive plan at the company’s May 20 annual meeting, which should give management more flexibility to retain and motivate employees through equity compensation. Citigroup Shareholders Approve Expanded Stock Incentive Plan
• Positive Sentiment: Several commentary pieces highlighted Citigroup as undervalued or attractive for income-focused investors, reinforcing the view that the stock still has room to rerate after recent earnings improvement. 5 Most Undervalued US Stocks According to Hedge Funds Why Citigroup (C) is a Top Dividend Stock for Your Portfolio
• Neutral Sentiment: Citigroup also remained active in market commentary on India IPOs and currency controls, but these reports are more about its broader banking views than a direct business update for the company. Citi sees India IPOs hitting fresh records despite challenges Citi Sees India IPOs Hitting Fresh Records Despite Challenges
• Neutral Sentiment: There was also a report that Trump backed away from requiring banks to collect citizenship information, which slightly reduces regulatory overhang but does not materially change Citigroup’s near-term fundamentals. Trump backs down from idea of banks collecting citizenship information
• Negative Sentiment: On the other hand, Citi faced fresh governance scrutiny after a separate report said more shareholders voted against the bank’s say-on-pay proposal, signaling some dissatisfaction with executive compensation practices. More Citi shareholders vote 'no' on say-on-pay

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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