Donoghue Forlines LLC Reduces Holdings in Citigroup Inc. $C

Key Points

• Donoghue Forlines LLC cut its Citigroup stake by 57.5% in the fourth quarter, selling 21,678 shares and leaving it with 16,037 shares worth about $1.87 million.
• Several institutional investors continued to hold large positions in Citigroup, and about 71.72% of the stock is owned by hedge funds and other institutions.
• Citigroup has been supported by strong earnings and a newly approved $30 billion share buyback, while analysts remain mostly positive with a consensus “Moderate Buy” rating and an average price target of $137.62.

Donoghue Forlines LLC trimmed its stake in Citigroup Inc. (NYSE:C - Free Report) by 57.5% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 16,037 shares of the company's stock after selling 21,678 shares during the period. Donoghue Forlines LLC's holdings in Citigroup were worth $1,871,000 at the end of the most recent quarter.

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

Wall Street Analyst Weigh In

A number of research firms have commented on C. Morgan Stanley lifted their price objective on shares of Citigroup from $140.00 to $144.00 and gave the company an "overweight" rating in a research note on Wednesday, April 15th. Wall Street Zen upgraded shares of Citigroup from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Oppenheimer restated an "outperform" rating and issued a $145.00 price objective on shares of Citigroup in a research note on Friday, May 8th. Keefe, Bruyette & Woods lifted their price objective on shares of Citigroup from $140.00 to $153.00 and gave the company an "outperform" rating in a research note on Friday, May 8th. Finally, Barclays lifted their price objective on shares of Citigroup from $146.00 to $154.00 and gave the company an "overweight" rating in a research note on Wednesday, April 15th. One investment 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, Citigroup presently has an average rating of "Moderate Buy" and an average price target of $137.62.

Insider Activity

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

Citigroup News Summary

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citigroup is getting credit for its strong earnings beat, with the bank reporting better-than-expected profit and revenue last quarter, which supports the view that operating momentum remains solid.
• Positive Sentiment: The company recently unveiled a $30 billion share buyback authorization, signaling management confidence and a larger return of capital to shareholders, which investors typically view favorably.
• Positive Sentiment: News that Citi plans to increase headcount by about 10% in its Asia-Pacific prime brokerage unit suggests continued expansion in a high-value business line and reinforces the growth narrative. Citigroup to boost Asia prime brokerage staff by 10% this year
• Positive Sentiment: Reports that Citigroup is weighing a broader Asia expansion and a bigger role in U.S.-China business show management is still focused on long-term international growth opportunities. Citigroup Weighs Asia Expansion And US China Role For Future Growth
• Neutral Sentiment: Analyst commentary and follow-up articles are mostly reflecting on Citi’s strong post-earnings run and whether the stock can sustain it, but they do not appear to be new fundamental catalysts. Citigroup (C) Down 5.8% Since Last Earnings Report: Can It Rebound?
• Neutral Sentiment: A Citigroup director sold a modest number of shares, which may mildly pressure sentiment, but the transaction was relatively small and does not materially change the investment thesis. SEC Director Sale Filing

Citigroup Stock Up 0.5%

Shares of NYSE:C opened at $124.77 on Friday. The company has a market cap of $212.81 billion, a price-to-earnings ratio of 15.46, a PEG ratio of 0.56 and a beta of 1.14. The firm's 50-day simple moving average is $119.26 and its 200-day simple moving average is $113.97. 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 Inc. has a fifty-two week low of $71.65 and a fifty-two week high of $135.29.

Citigroup (NYSE:C - Get Free Report) last issued its earnings results on Tuesday, April 14th. The company reported $3.06 earnings per share for the quarter, beating the consensus estimate of $2.63 by $0.43. The business had revenue of $24.63 billion for the quarter, compared to the consensus estimate of $22.96 billion. Citigroup had a net margin of 9.35% and a return on equity of 9.19%. The business's quarterly revenue was up 14.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.96 earnings per share. As a group, equities research 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. Stockholders of record on Monday, May 4th will be issued a $0.60 dividend. The ex-dividend date of this dividend is Monday, May 4th. This represents a $2.40 annualized dividend and a dividend yield of 1.9%. Citigroup's payout ratio is presently 29.74%.

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

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