Cullen Frost Bankers Inc. Buys 25,760 Shares of Citigroup Inc. $C

Key Points

• Cullen Frost Bankers increased its Citigroup stake by 12.5% in the fourth quarter, buying 25,760 additional shares and bringing its total holdings to 231,928 shares valued at about $27.1 million.
• Citigroup has seen a mix of supportive news, including a €15 billion private capital program with BlackRock’s HPS, improved April card delinquency and charge-off trends, and approval to launch a securities firm in mainland China.
• The bank continues to return capital to shareholders through a $30 billion share buyback and a quarterly dividend of $0.60 per share, while analysts maintain a Moderate Buy consensus with an average price target of $137.62.

Cullen Frost Bankers Inc. boosted its stake in Citigroup Inc. (NYSE:C - Free Report) by 12.5% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The firm owned 231,928 shares of the company's stock after acquiring an additional 25,760 shares during the period. Cullen Frost Bankers Inc.'s holdings in Citigroup were worth $27,064,000 as of its most recent filing with the SEC.

Other hedge funds have also added to or reduced their stakes in the company. Richards Merrill & Peterson Inc. bought a new stake in Citigroup in the fourth quarter worth about $28,000. Dunhill Financial LLC raised its position in Citigroup by 92.2% in the third quarter. Dunhill Financial LLC now owns 319 shares of the company's stock worth $32,000 after acquiring an additional 153 shares during the period. Luken Investment Analytics LLC bought a new stake in Citigroup in the fourth quarter worth about $32,000. High Note Wealth LLC raised its position in Citigroup by 107.7% in the fourth quarter. High Note Wealth LLC now owns 270 shares of the company's stock worth $32,000 after acquiring an additional 140 shares during the period. Finally, Guerra Advisors Inc bought a new stake in Citigroup in the third quarter worth about $33,000. Institutional investors own 71.72% of the company's stock.

Trending Headlines about Citigroup

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citigroup launched a €15 billion private capital program with BlackRock’s HPS to expand direct lending across EMEA, a move that could strengthen fee-based revenue and deepen its presence in private credit. Article Title
• Positive Sentiment: Citi reported better April card delinquency and charge-off trends year over year, suggesting some improvement in consumer credit quality. Article Title
• Positive Sentiment: Citi received final approval to launch a wholly foreign-owned securities firm in mainland China, expanding its ability to offer investment banking and brokerage services directly in a major market. Article Title
• Positive Sentiment: Citigroup hired former UK lawmaker Chuka Umunna as managing director in its UK investment banking division, a small but notable talent win that may support its EMEA franchise. Article Title
• Neutral Sentiment: Citi’s call that 30-year Treasury yields may next focus on 5.5% reflects its macro view, but it is not a direct operating driver for the bank. Article Title
• Negative Sentiment: CFRA reportedly downgraded Citigroup to Hold, which may be tempering enthusiasm after a strong run in the shares. Article Title

Citigroup Stock Performance

NYSE C opened at $119.96 on Wednesday. The company's 50 day moving average is $120.03 and its 200-day moving average is $114.43. Citigroup Inc. has a 12-month low of $71.65 and a 12-month high of $135.29. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 1.59. The firm has a market cap of $204.60 billion, a P/E ratio of 14.87, a price-to-earnings-growth ratio of 0.55 and a beta of 1.14.

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

Citigroup Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, May 22nd. Investors of record on Monday, May 4th will be issued a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Monday, May 4th. Citigroup's dividend payout ratio is 29.74%.

Citigroup announced that its board has authorized a share buyback program on Thursday, May 7th that permits the company to buyback $30.00 billion in outstanding shares. This buyback authorization permits 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 management believes its stock is undervalued.

Analyst Ratings Changes

Several brokerages have commented on C. Barclays lifted their price objective on shares of Citigroup from $146.00 to $154.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 15th. Wall Street Zen raised shares of Citigroup from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $139.00 price objective on shares of Citigroup in a research report on Wednesday, April 15th. Piper Sandler reaffirmed an "overweight" rating and issued a $145.00 price objective (up from $125.00) on shares of Citigroup in a research report on Wednesday, April 15th. Finally, Truist Financial set a $147.00 price target on shares of Citigroup in a research report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $137.62.

Insider Buying and Selling

In related news, insider Edward Skyler sold 25,000 shares of the company's 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 sale, the insider owned 182,022 shares of the company's stock, valued at approximately $23,919,511.02. This represents a 12.08% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director John Cunningham Dugan sold 2,117 shares of the company's 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 sale, the director directly owned 12,194 shares in the company, valued at $1,527,908.20. This trade represents a 14.79% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.11% of the company's stock.

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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