Northwestern Mutual Wealth Management Co. Lowers Position in Citigroup Inc. $C

Key Points

• Northwestern Mutual Wealth Management cut its Citigroup stake by 14.8% in the second quarter, selling 110,514 shares and retaining 637,555 shares valued at approximately $89.2 million. Institutional investors collectively own 71.72% of Citi’s stock.
• Citigroup reported quarterly EPS of $3.15, exceeding estimates of $2.74, while revenue rose 14.5% year over year to $24.77 billion. The bank also authorized a $30 billion share-repurchase program and raised its quarterly dividend to $0.67.
• Analysts maintain a generally positive view, with the stock rated “Moderate Buy” and an average price target of $145.22. However, investors continue to monitor rising card delinquencies and broader credit-quality risks.

Northwestern Mutual Wealth Management Co. lessened its position in shares of Citigroup Inc. (NYSE:C - Free Report) by 14.8% during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 637,555 shares of the company's stock after selling 110,514 shares during the quarter. Northwestern Mutual Wealth Management Co.'s holdings in Citigroup were worth $89,232,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also made changes to their positions in C. Brighton Jones LLC increased its holdings in Citigroup by 166.9% in the 4th quarter. Brighton Jones LLC now owns 19,990 shares of the company's stock worth $1,407,000 after acquiring an additional 12,499 shares in the last quarter. Sivia Capital Partners LLC raised its holdings in Citigroup by 20.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 9,805 shares of the company's stock valued at $835,000 after acquiring an additional 1,669 shares during the last quarter. United Bank purchased a new position in Citigroup during the second quarter worth approximately $972,000. Osterweis Capital Management Inc. grew its holdings in Citigroup by 3,016.7% in the 2nd quarter. Osterweis Capital Management Inc. now owns 935 shares of the company's stock valued at $80,000 after buying an additional 905 shares in the last quarter. Finally, HUB Investment Partners LLC increased its stake in shares of Citigroup by 26.9% in the 2nd quarter. HUB Investment Partners LLC now owns 15,287 shares of the company's stock worth $1,301,000 after acquiring an additional 3,238 shares during the last quarter. 71.72% of the stock is currently owned by hedge funds and other institutional investors.

Citigroup Stock Up 1.4%

Shares of NYSE C opened at $131.46 on Friday. The stock has a market cap of $224.22 billion, a P/E ratio of 14.20, a PEG ratio of 0.59 and a beta of 1.12. The business's fifty day simple moving average is $137.20 and its 200-day simple moving average is $126.29. Citigroup Inc. has a 12-month low of $92.84 and a 12-month high of $147.96. The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 1.71.

Citigroup (NYSE:C - Get Free Report) last released its earnings results on Tuesday, July 14th. The company reported $3.15 EPS for the quarter, topping the consensus estimate 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 analysts' expectations of $23.74 billion. During the same period in the previous year, the firm posted $1.96 EPS. Citigroup's revenue for the quarter was up 14.5% on a year-over-year basis. As a group, equities analysts predict that Citigroup Inc. will post 11.2 EPS for the current fiscal year.

Citigroup announced that its board has authorized a share buyback plan on Thursday, May 7th that allows the company to repurchase $30.00 billion in outstanding 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 an indication that the company's board of directors believes its shares are undervalued.

Citigroup Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Monday, August 3rd will be paid a $0.67 dividend. This represents a $2.68 annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Monday, August 3rd. This is a boost from Citigroup's previous quarterly dividend of $0.60. Citigroup's dividend payout ratio (DPR) is 28.94%.

Analyst Ratings Changes

Several research analysts have recently weighed in on C shares. Truist Financial lowered their price target on shares of Citigroup from $158.00 to $154.00 and set a "buy" rating on the stock in a research report on Wednesday, July 15th. JPMorgan Chase & Co. increased their price objective on shares of Citigroup from $135.50 to $149.00 and gave the stock an "overweight" rating in a research report on Monday, July 6th. UBS Group cut their target price on Citigroup from $150.00 to $142.00 and set a "neutral" rating on the stock in a research report on Monday, August 3rd. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $150.00 price objective on shares of Citigroup in a research note on Wednesday, July 15th. Finally, Morgan Stanley boosted their price objective on Citigroup from $154.00 to $164.00 and gave the company an "overweight" rating in a report on Monday, June 29th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $145.22.

Key Stories Impacting Citigroup

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Anthropic IPO role could boost fee revenue and deal visibility. Citigroup is reportedly being added to the group of leading banks guiding Anthropic toward a potential initial public offering. A role on a large, prominent AI-company listing could generate underwriting fees and strengthen Citi’s capital-markets franchise. Anthropic adds Citigroup to top banks guiding its IPO
• Positive Sentiment: Citigroup received strong growth-oriented stock-market recognition. A recent ranking identified Citigroup and Goldman Sachs among financial giants receiving “buy” growth grades, reinforcing the view that Citi’s earnings and business outlook compare favorably with peers. Citigroup and Goldman Sachs lead as most financial giants earn buy growth grades
• Neutral Sentiment: Citi remains constructive on broader equity markets. The bank maintained an overweight view on equities and said it would use any weakness before the U.S. midterm elections to add exposure. This may support confidence in Citi’s research and client-facing businesses, although it does not directly change the company’s earnings outlook. S&P 500 may pull back before midterms, but Citi says buy the dip
• Negative Sentiment: Credit-quality concerns remain a risk. Citigroup’s July card delinquencies edged higher, although lower charge-offs provided some offsetting relief. Investors may continue monitoring consumer credit trends for signs of pressure on asset quality and loan-loss provisions. C's July Card Delinquencies Tick Up

Citigroup 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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