Engle Capital Management L.P. Buys Shares of 42,000 Citigroup Inc. $C

Key Points

• Engle Capital Management initiated a new position in Citigroup, buying 42,000 shares valued at about $4.9 million. The stake makes Citigroup its 19th-largest holding and represents 1.9% of the portfolio.
• Citigroup’s latest quarterly results came in ahead of expectations, with EPS of $3.06 versus $2.63 expected and revenue of $24.63 billion versus $22.96 billion forecast. Revenue also rose 14.1% year over year.
• The bank continues to return capital to shareholders, having declared a $0.60 quarterly dividend and launched a $30 billion share buyback plan. Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $137.79.

Engle Capital Management L.P. bought a new stake in shares of Citigroup Inc. (NYSE:C - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the SEC. The fund bought 42,000 shares of the company's stock, valued at approximately $4,901,000. Citigroup accounts for 1.9% of Engle Capital Management L.P.'s investment portfolio, making the stock its 19th largest position.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the company. Vanguard Group Inc. raised its stake 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 valued at $19,048,467,000 after purchasing an additional 4,938,923 shares in the last quarter. Capital World Investors increased its position in shares of Citigroup by 6.5% during the 3rd quarter. Capital World Investors now owns 47,262,626 shares of the company's stock valued at $4,797,292,000 after purchasing an additional 2,871,074 shares during the period. Geode Capital Management LLC increased its position in shares of Citigroup by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 43,252,372 shares of the company's stock valued at $5,036,712,000 after purchasing an additional 189,548 shares during the period. Franklin Resources Inc. increased its position in shares of Citigroup by 4.0% during the 4th quarter. Franklin Resources Inc. now owns 34,196,783 shares of the company's stock valued at $3,990,422,000 after purchasing an additional 1,326,224 shares during the period. Finally, Fisher Asset Management LLC increased its position in shares of Citigroup by 2.6% during the 4th quarter. Fisher Asset Management LLC now owns 33,887,285 shares of the company's stock valued at $3,954,307,000 after purchasing an additional 846,772 shares during the period. 71.72% of the stock is owned by institutional investors and hedge funds.

Citigroup Stock Up 0.5%

NYSE:C opened at $143.74 on Thursday. The firm has a market capitalization of $245.16 billion, a price-to-earnings ratio of 17.81, a PEG ratio of 0.64 and a beta of 1.12. Citigroup Inc. has a 1-year low of $77.26 and a 1-year high of $146.54. The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 1.59. The business's fifty day moving average price is $128.94 and its 200 day moving average price is $119.04.

Citigroup (NYSE:C - Get Free Report) last posted its quarterly 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 firm had revenue of $24.63 billion for the quarter, compared to analyst estimates of $22.96 billion. Citigroup had a return on equity of 9.19% and a net margin of 9.35%.Citigroup's quarterly revenue was up 14.1% on a year-over-year basis. During the same period in the previous year, the firm earned $1.96 earnings per share. On average, sell-side analysts forecast that Citigroup Inc. will post 10.68 earnings per share for the current fiscal year.

Citigroup Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 22nd. Stockholders of record on Monday, May 4th were issued a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 1.7%. The ex-dividend date was Monday, May 4th. Citigroup's payout ratio is currently 29.74%.

Citigroup announced that its board has initiated a share buyback plan on Thursday, May 7th that allows the company to repurchase $30.00 billion in shares. This repurchase authorization allows the company to purchase up to 13.7% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Wall Street Analysts Forecast Growth

C has been the topic of several research analyst reports. Oppenheimer reiterated an "outperform" rating and set a $145.00 price target on shares of Citigroup in a research report on Friday, May 8th. Jefferies Financial Group assumed coverage on shares of Citigroup in a report on Thursday, March 26th. They set a "buy" rating and a $135.00 target price for the company. Barclays raised their target price on shares of Citigroup from $146.00 to $154.00 and gave the stock an "overweight" rating in a report on Wednesday, April 15th. JPMorgan Chase & Co. raised their target price on shares of Citigroup from $131.00 to $135.50 and gave the stock an "overweight" rating in a report on Thursday, April 30th. Finally, Evercore set a $139.00 target price on shares of Citigroup in a report on Wednesday, April 15th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $137.79.

More Citigroup News

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Trading activity showed unusually strong demand for Citigroup call options, suggesting investors are positioning for further upside in the stock.
• Positive Sentiment: Citigroup’s May consumer credit data was mixed but not alarming overall: card delinquencies declined, which may support the view that credit quality remains manageable. Article: Citigroup's Card Delinquencies Decline, Charge-Offs Rise in May
• Positive Sentiment: The stock is still benefiting from recent momentum tied to strong earnings, restructuring progress, AI-related initiatives and share buybacks, which have helped push shares toward multi-year highs. Article: Citigroup Stock at Multi-Year High: Why Investors Should Stay Invested
• Neutral Sentiment: There was also a report that Citigroup had recently gone long on a more constructive market view via an economist’s call for Fed rate cuts, but this is more macro commentary than a direct company catalyst. Article: Citi chief US economist defends unpopular Fed rate-cut call
• Negative Sentiment: Two lawsuits tied to a former executive’s allegations over Trump-related client concerns and retaliation could create legal and reputational risk for Citigroup if the claims gain traction. Article: Citigroup faces lawsuit over alleged Trump-linked account issues

Insider Buying and Selling at Citigroup

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

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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