Diversified Management Inc. Trims Stock Position in Citigroup Inc. $C

Key Points

• Diversified Management Inc. cut its Citigroup stake by 85.4% in the second quarter, selling 10,048 shares and retaining 1,712 shares valued at approximately $240,000.
• Institutional ownership remains high at 71.72%, while analyst sentiment is broadly positive: Citigroup has a consensus “Moderate Buy” rating and an average price target of $145.22.
• Citigroup reported stronger-than-expected quarterly results, with EPS of $3.15 and revenue of $24.77 billion, and increased its quarterly dividend to $0.67. The company also has authorization for up to $30 billion in share repurchases.

Diversified Management Inc. decreased its holdings in Citigroup Inc. (NYSE:C - Free Report) by 85.4% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,712 shares of the company's stock after selling 10,048 shares during the quarter. Diversified Management Inc.'s holdings in Citigroup were worth $240,000 at the end of the most recent reporting period.

Several other large investors also recently added to or reduced their stakes in C. Norges Bank bought a new position in Citigroup in the 4th quarter worth $2,800,944,000. Vanguard Group Inc. grew its holdings in Citigroup by 3.1% during the fourth quarter. Vanguard Group Inc. now owns 163,239,926 shares of the company's stock valued at $19,048,467,000 after purchasing an additional 4,938,923 shares during the period. Eurizon Capital SGR S.p.A. purchased a new stake in Citigroup in the fourth quarter worth about $298,082,000. SEB Asset Management AB purchased a new stake in Citigroup in the first quarter worth about $252,972,000. Finally, Deutsche Bank AG lifted its position in shares of Citigroup by 28.4% during the 4th quarter. Deutsche Bank AG now owns 7,158,142 shares of the company's stock valued at $835,284,000 after buying an additional 1,582,150 shares in the last quarter. 71.72% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the stock. Royal Bank Of Canada reissued an "outperform" rating and issued a $150.00 target price on shares of Citigroup in a report on Wednesday, July 15th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Citigroup in a report on Friday, July 17th. Oppenheimer lowered shares of Citigroup from an "outperform" rating to a "market perform" rating in a research report on Tuesday, June 30th. UBS Group reduced their price objective on shares of Citigroup from $150.00 to $142.00 and set a "neutral" rating for the company in a research note on Monday, August 3rd. Finally, Wall Street Zen downgraded shares of Citigroup from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $145.22.

Key Citigroup News

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Healthcare banking expansion: Citigroup appointed new leadership covering biotechnology, medical technology, biopharmaceuticals and acute care. The changes position the bank to capture increased healthcare mergers-and-acquisitions and capital-markets activity, potentially supporting fee revenue. Citi Taps New Healthcare Banking Leadership as Dealmaking Heats Up
• Positive Sentiment: Strong operating momentum: Citigroup’s latest quarterly results exceeded expectations, with earnings per share of $3.15 versus a $2.74 consensus estimate and revenue of $24.77 billion versus $23.74 billion expected. Revenue rose 14.5% year over year, reinforcing the stock’s positive earnings momentum.
• Positive Sentiment: Advisory and financing activity: Citi led a $414 million financing tranche for restaurant-commerce company inKind, bringing the company’s total capital raised above $1.2 billion. The transaction highlights Citi’s ability to win large private-company financing mandates and generate investment-banking fees. inKind Secures $414 Million in Financing Led by Citi and Cross River
• Neutral Sentiment: New bond offerings: Citigroup announced fixed-income offerings, including 5.05% notes due 2030 and zero-coupon notes due 2056. The deals provide evidence of continued market access and funding flexibility, although investors may monitor borrowing costs and the effect of additional debt on margins and leverage. Is Citigroup Undervalued After Its Latest Bond Offerings?
• Neutral Sentiment: Citi research remains active: Analysts reiterated a bullish outlook for silver and raised their MongoDB price target, but these calls primarily affect Citi’s research franchise and do not materially change Citigroup’s own earnings outlook. Silver Could Surge to $90, Citi Says

Citigroup Stock Performance

Shares of NYSE C opened at $137.56 on Thursday. The company has a market cap of $234.62 billion, a P/E ratio of 14.86, a P/E/G ratio of 0.61 and a beta of 1.12. Citigroup Inc. has a 52-week low of $90.68 and a 52-week high of $147.96. The company has a debt-to-equity ratio of 1.71, a quick ratio of 0.99 and a current ratio of 0.99. The firm's fifty day moving average is $137.17 and its two-hundred day moving average is $125.34.

Citigroup (NYSE:C - Get Free Report) last issued its quarterly earnings data on Tuesday, July 14th. The company reported $3.15 earnings per share for the quarter, beating 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 analyst estimates of $23.74 billion. During the same quarter last year, the business posted $1.96 earnings per share. The business's quarterly revenue was up 14.5% compared to the same quarter last year. As a group, analysts anticipate that Citigroup Inc. will post 11.2 EPS for the current fiscal year.

Citigroup Increases Dividend

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

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

Citigroup Company 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.

Want to see what other hedge funds are holding C? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Citigroup Inc. (NYSE:C - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source