Envestnet Asset Management Inc. Cuts Stake in Citigroup Inc. $C

Key Points

• Envestnet Asset Management reduced its Citigroup stake by 3.5% in the second quarter, selling 100,483 shares and retaining 2.8 million shares valued at approximately $391.4 million. Institutional investors collectively own 71.72% of Citigroup.
• Wall Street remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $145.22. Citigroup also exceeded quarterly earnings and revenue expectations, reporting $3.15 EPS and $24.77 billion in revenue.
• Citigroup raised its quarterly dividend to $0.67, or $2.68 annually, for a 2.0% yield. However, rising credit-card delinquencies and persistent inflation could increase credit costs and weigh on the bank’s outlook.

Envestnet Asset Management Inc. cut its stake in Citigroup Inc. (NYSE:C - Free Report) by 3.5% during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 2,802,972 shares of the company's stock after selling 100,483 shares during the period. Envestnet Asset Management Inc. owned approximately 0.16% of Citigroup worth $391,430,000 as of its most recent SEC filing.

A number of other institutional investors have also recently bought and sold shares of the stock. Andra AP fonden increased its position in Citigroup by 22.3% during the 2nd quarter. Andra AP fonden now owns 274,600 shares of the company's stock worth $38,433,000 after purchasing an additional 50,100 shares in the last quarter. State Street Corp lifted its position in Citigroup by 3.7% during the second quarter. State Street Corp now owns 80,956,349 shares of the company's stock valued at $11,199,986,000 after buying an additional 2,913,701 shares in the last quarter. Smith Chas P & Associates PA Cpas acquired a new position in Citigroup during the second quarter valued at approximately $232,000. Talon Private Wealth LLC increased its position in shares of Citigroup by 0.8% in the second quarter. Talon Private Wealth LLC now owns 30,179 shares of the company's stock worth $4,224,000 after acquiring an additional 235 shares in the last quarter. Finally, Core Capital Management & Research inc. purchased a new stake in Citigroup during the 2nd quarter worth $658,000. 71.72% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

C has been the topic of a number of recent research reports. Morgan Stanley boosted their price objective on Citigroup from $154.00 to $164.00 and gave the stock an "overweight" rating in a research note on Monday, June 29th. JPMorgan Chase & Co. raised their target price on Citigroup from $135.50 to $149.00 and gave the company an "overweight" rating in a report on Monday, July 6th. Truist Financial reduced their price target on Citigroup from $158.00 to $154.00 and set a "buy" rating on the stock in a research report on Wednesday, July 15th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $150.00 price objective on shares of Citigroup in a research report on Wednesday, July 15th. Finally, Wall Street Zen lowered shares of Citigroup from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, Citigroup has a consensus rating of "Moderate Buy" and an average price target of $145.22.

Key Headlines Impacting Citigroup

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citigroup announced the full redemption of €1.5 billion of 0.500% notes due in 2027. Retiring the debt may help manage funding costs and simplify the bank’s liability structure, although the financial impact is likely modest. Citigroup Announces €1.5 Billion Redemption of Notes
• Positive Sentiment: Citi launched Citi Commerce Media, a card-linked advertising platform intended to use its more than 70 million U.S. customers and billions of annual transactions to connect brands with consumers. The initiative could create a new fee and data-related revenue stream, though its earnings contribution is not yet known. Citi Unveils Citi Commerce Media
• Neutral Sentiment: Citigroup’s collaboration with Mastercard on an AI-focused digital program for future high-net-worth clients supports its wealth-management and innovation initiatives, but it is primarily a branding and client-engagement effort with limited immediate effect on financial results. Citi Engages Future Leaders Through Mastercard AI Digital Safari
• Neutral Sentiment: Citigroup Global Markets India is serving as the sole agent for Mastercard’s reported sale of its Pine Labs stake. The transaction could generate advisory or placement fees, but it is unlikely to materially change Citi’s overall earnings. Pine Labs Shares Rise After Block Deal
• Negative Sentiment: U.S. credit-card delinquencies and net charge-offs rose sequentially in August across major issuers. Although levels remain below a year earlier, the data point to rising consumer stress and could pressure Citi’s card-credit costs if the trend persists. U.S. Card Issuers Delinquencies and Net Charge-Offs Rise
• Negative Sentiment: Boston Fed President Susan Collins supported a restrictive interest-rate stance because of persistent inflation. Higher rates can support bank interest income, but they also raise funding and credit risks, slow loan demand and weigh on financial-sector valuations. Fed’s Collins Backs Rate Hike

Citigroup Trading Down 0.5%

NYSE C opened at $131.87 on Thursday. The company has a market capitalization of $224.92 billion, a price-to-earnings ratio of 14.24, a price-to-earnings-growth ratio of 0.60 and a beta of 1.12. The company has a debt-to-equity ratio of 1.71, a current ratio of 0.99 and a quick ratio of 0.99. Citigroup Inc. has a 12 month low of $93.66 and a 12 month high of $147.96. The company's fifty day moving average price is $134.17 and its two-hundred day moving average price is $129.62.

Citigroup (NYSE:C - Get Free Report) last issued its earnings results on Tuesday, July 14th. The company reported $3.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.74 by $0.41. Citigroup had a net margin of 10.23% and a return on equity of 10.15%. The business had revenue of $24.77 billion for the quarter, compared to analyst estimates of $23.74 billion. During the same quarter in the prior year, the business posted $1.96 EPS. The company's revenue for the quarter was up 14.5% on a year-over-year basis. As a group, research analysts predict that Citigroup Inc. will post 11.2 earnings per share for the current fiscal year.

Citigroup Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Monday, August 3rd were given a $0.67 dividend. This represents a $2.68 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date was Monday, August 3rd. This is an increase from Citigroup's previous quarterly dividend of $0.60. Citigroup's payout ratio is 28.94%.

About Citigroup

Citigroup Inc NYSE: C is a global financial services company headquartered in New York City. Through its businesses, Citi provides banking, lending, credit card, wealth management, investment banking, securities, markets and treasury services to individuals, businesses, financial institutions and governments.

The company's operations include U.S. Personal Banking, which offers consumer banking, credit cards and lending products; Wealth Management, which serves affluent and high-net-worth clients; and its Institutional Clients Group, which provides investment banking, corporate banking, markets, securities services and transaction banking.

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