Daiwa Securities Group Inc. Raises Position in Citigroup Inc. $C

Key Points

• Daiwa Securities Group Inc. increased its Citigroup stake by 2.7% in the fourth quarter, holding 330,380 shares worth about $38.6 million at the end of the period.
• Citigroup posted strong quarterly results, with EPS of $3.06 beating estimates and revenue of $24.63 billion also topping expectations, while revenue rose 14.1% year over year.
• Shareholder returns and sentiment remain constructive: Citi authorized a $30 billion share repurchase program and paid a quarterly dividend of $0.60 per share, while analysts currently rate the stock a “Moderate Buy.”

Daiwa Securities Group Inc. boosted its stake in Citigroup Inc. (NYSE:C - Free Report) by 2.7% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 330,380 shares of the company's stock after buying an additional 8,616 shares during the period. Daiwa Securities Group Inc.'s holdings in Citigroup were worth $38,552,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Richards Merrill & Peterson Inc. purchased a new stake in Citigroup in the fourth quarter worth about $28,000. Luken Investment Analytics LLC purchased a new stake in Citigroup in the fourth quarter worth about $32,000. High Note Wealth LLC lifted its holdings 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 buying an additional 140 shares during the period. Entrust Financial LLC purchased a new stake in Citigroup in the fourth quarter worth about $34,000. Finally, Maseco LLP purchased a new stake in Citigroup in the fourth quarter worth about $35,000. 71.72% of the stock is currently owned by hedge funds and other institutional investors.

Citigroup Price Performance

Shares of NYSE C opened at $135.01 on Friday. Citigroup Inc. has a twelve month low of $75.66 and a twelve month high of $135.67. The firm has a market cap of $230.27 billion, a P/E ratio of 16.73, a PEG ratio of 0.58 and a beta of 1.12. The company has a 50 day moving average of $124.50 and a 200 day moving average of $116.64. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 1.59.

Citigroup (NYSE:C - Get Free Report) last announced its quarterly earnings data 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. 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 analyst estimates of $22.96 billion. During the same period in the previous year, the business earned $1.96 EPS. The firm's revenue for the quarter was up 14.1% on a year-over-year basis. As a group, research analysts expect that Citigroup Inc. will post 10.68 EPS for the current fiscal year.

Citigroup announced that its board has approved a share repurchase program 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 programs are generally an indication that the company's management believes its stock is undervalued.

Citigroup Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 22nd. Investors of record on Monday, May 4th were issued a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date was Monday, May 4th. Citigroup's payout ratio is presently 29.74%.

Insider Buying and Selling

In related news, Director John Cunningham Dugan sold 2,117 shares of the business's stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $125.30, for a total value of $265,260.10. Following the completion of the transaction, the director directly owned 12,194 shares in the company, valued at $1,527,908.20. The trade was a 14.79% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Edward Skyler sold 25,000 shares of the business's stock in a transaction that occurred on 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 transaction, the insider owned 182,022 shares of the company's stock, valued at approximately $23,919,511.02. The trade was a 12.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.11% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the stock. Truist Financial set a $147.00 target price on shares of Citigroup in a report on Friday, May 1st. Evercore set a $139.00 target price on shares of Citigroup in a report on Wednesday, April 15th. Oppenheimer reiterated an "outperform" rating and set a $145.00 target price on shares of Citigroup in a report on Friday, May 8th. Weiss Ratings reiterated a "buy (b)" rating on shares of Citigroup in a report on Monday, April 20th. Finally, Wells Fargo & Company lifted their target price on shares of Citigroup from $160.00 to $162.00 and gave the company an "overweight" rating in a report on Wednesday, April 29th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $137.62.

Citigroup News Roundup

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citigroup is reportedly part of a new tokenized deposit system being developed with JPMorgan and other major banks, a move that could help Citi compete with stablecoins and crypto-native firms while opening a new digital-payments growth avenue.
• Positive Sentiment: Citi said its AI document-processing system cut account-opening review time from 60 minutes to 15 minutes, signaling a meaningful productivity gain and a path to lower operating costs.
• Positive Sentiment: Citigroup was also mentioned as a possible bank for OpenAI’s upcoming IPO, which could bolster fee income and reinforce Citi’s role in high-profile capital markets deals.
• Positive Sentiment: Investor sentiment is further supported by Citi’s recent strong results, with quarterly EPS and revenue both beating estimates, and by analyst commentary pointing to a constructive technical setup for the stock.
• Neutral Sentiment: Citi announced redemptions of $3.15 billion in 2027-due notes. This is a routine balance-sheet action and does not appear to be a major surprise, but it may reflect ongoing capital management discipline.
• Neutral Sentiment: Several headlines focused on Citi’s broader research coverage of other companies and portfolio moves by Citi entities, but these appear to be more about the bank’s market presence than a direct driver of Citigroup’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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