Citigroup Inc. $C Stake Lowered by Gabelli Funds LLC

Key Points

• Gabelli Funds LLC reduced its Citigroup stake by 4.7% in the fourth quarter, selling 13,050 shares and leaving it with 265,455 shares valued at about $31.0 million.
• Citigroup beat quarterly expectations, reporting EPS of $3.06 versus $2.63 expected and revenue of $24.63 billion, while revenue rose 14.1% from a year earlier.
• The bank reinforced shareholder returns by announcing a $0.60 quarterly dividend and authorizing a $30 billion share buyback program, which covers up to 13.7% of its shares.

Gabelli Funds LLC cut its stake in shares of Citigroup Inc. (NYSE:C - Free Report) by 4.7% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 265,455 shares of the company's stock after selling 13,050 shares during the quarter. Gabelli Funds LLC's holdings in Citigroup were worth $30,976,000 as of its most recent SEC filing.

Several other institutional investors also recently made changes to their positions in the stock. Vanguard Group Inc. boosted its position in shares of Citigroup by 3.1% during the fourth quarter. Vanguard Group Inc. now owns 163,239,926 shares of the company's stock worth $19,048,467,000 after buying an additional 4,938,923 shares during the period. Capital World Investors boosted its position in shares of Citigroup by 6.5% during the third quarter. Capital World Investors now owns 47,262,626 shares of the company's stock worth $4,797,292,000 after buying an additional 2,871,074 shares during the period. Fisher Asset Management LLC boosted its position in shares of Citigroup by 2.7% during the third quarter. Fisher Asset Management LLC now owns 33,040,513 shares of the company's stock worth $3,353,612,000 after buying an additional 879,056 shares during the period. Franklin Resources Inc. boosted its position in shares of Citigroup by 1.8% during the third quarter. Franklin Resources Inc. now owns 32,870,559 shares of the company's stock worth $3,336,362,000 after buying an additional 580,027 shares during the period. Finally, Bank of New York Mellon Corp boosted its position in shares of Citigroup by 17.6% during the third quarter. Bank of New York Mellon Corp now owns 28,125,995 shares of the company's stock worth $2,854,788,000 after buying an additional 4,211,099 shares during the period. 71.72% of the stock is owned by institutional investors.

Citigroup Trading Down 0.9%

Shares of NYSE:C opened at $122.34 on Tuesday. The stock has a market capitalization of $208.66 billion, a PE ratio of 15.16, a P/E/G ratio of 0.55 and a beta of 1.14. Citigroup Inc. has a 1 year low of $71.65 and a 1 year high of $135.29. The firm has a fifty day moving average price of $119.77 and a 200 day moving average price of $114.28. The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 1.59.

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, beating 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 analysts' expectations of $22.96 billion. During the same period in the prior year, the company earned $1.96 earnings per share. The business's quarterly revenue was up 14.1% compared to the same quarter last year. 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. Investors of record on Monday, May 4th will be paid a $0.60 dividend. This represents a $2.40 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Monday, May 4th. Citigroup's dividend payout ratio (DPR) is presently 29.74%.

Citigroup announced that its Board of Directors has authorized a share repurchase plan on Thursday, May 7th that authorizes the company to repurchase $30.00 billion in shares. This repurchase authorization authorizes the company to buy up to 13.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

C has been the subject of a number of research analyst reports. Barclays upped their target price on Citigroup from $146.00 to $154.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 15th. The Goldman Sachs Group upped their target price on Citigroup from $137.00 to $151.00 and gave the stock a "buy" rating in a research report on Wednesday, April 15th. Oppenheimer reiterated an "outperform" rating and set a $145.00 price objective on shares of Citigroup in a research report on Friday, May 8th. Truist Financial set a $147.00 price objective on Citigroup in a research report on Friday, May 1st. Finally, Wells Fargo & Company boosted their target price on shares of Citigroup from $160.00 to $162.00 and gave the company an "overweight" rating in a research note on Wednesday, April 29th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, Citigroup currently has an average rating of "Moderate Buy" and a consensus target price of $137.62.

Citigroup News Summary

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citigroup and BlackRock’s HPS announced a €15 billion private capital program to expand direct lending in EMEA, giving Citi another way to grow fee income and deepen its lending franchise. Citigroup and HPS Investment Partners, a part of BlackRock, Announce €15 Billion Private Capital Program to Expand Direct Lending in EMEA
• Positive Sentiment: Citigroup neared final approval for a wholly owned securities firm in China, which would let it directly offer investment banking and brokerage services onshore instead of relying on joint ventures. Citigroup Nears Final Approval for Wholly-Owned China Securities Firm
• Positive Sentiment: Investor sentiment was also helped by a Goldman Sachs Buy rating and $149 price target, with analysts pointing to a cleaner path to improved profitability and higher returns. Citigroup (C) Among the Best Value Stocks to Buy for Long Term Investment
• Neutral Sentiment: Broader financial stocks were higher on Monday afternoon, with the NYSE Financial Index up 1%, providing a mild sector tailwind for Citi. Sector Update: Financial Stocks Higher Monday Afternoon

Insider Activity

In related news, insider Edward Skyler sold 25,000 shares of the stock in a transaction dated 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 completion of the transaction, the insider owned 182,022 shares of the company's stock, valued at $23,919,511.02. This represents a 12.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director John Cunningham Dugan sold 2,117 shares of the stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $125.30, for a total transaction of $265,260.10. Following the completion of the transaction, the director directly owned 12,194 shares of the company's stock, valued at $1,527,908.20. This trade represents a 14.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.11% of the stock is currently owned by company insiders.

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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