Pinnbrook Capital Management LP Takes Position in Citigroup Inc. $C

Key Points

• Pinnbrook Capital Management opened a new position in Citigroup, buying 41,882 shares valued at about $4.89 million in the fourth quarter.
• Citigroup posted strong quarterly results, with earnings per share of $3.06 beating estimates of $2.63 and revenue of $24.63 billion topping forecasts, while revenue rose 14.1% year over year.
• The bank also announced a quarterly dividend of $0.60 per share and a new $30 billion share repurchase program, signaling confidence in its capital returns and valuation.

Pinnbrook Capital Management LP purchased a new stake in shares of Citigroup Inc. (NYSE:C - Free Report) in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm purchased 41,882 shares of the company's stock, valued at approximately $4,887,000.

Other large investors have also recently modified their holdings of the company. Richards Merrill & Peterson Inc. bought a new position in shares of Citigroup during the fourth quarter valued at $28,000. Luken Investment Analytics LLC bought a new position in shares of Citigroup during the fourth quarter valued at $32,000. High Note Wealth LLC raised its stake in shares of Citigroup by 107.7% during the fourth quarter. High Note Wealth LLC now owns 270 shares of the company's stock valued at $32,000 after acquiring an additional 140 shares during the last quarter. Entrust Financial LLC bought a new position in shares of Citigroup during the fourth quarter valued at $34,000. Finally, Maseco LLP bought a new position in shares of Citigroup during the fourth quarter valued at $35,000. Institutional investors own 71.72% of the company's stock.

Citigroup Price Performance

Shares of NYSE C opened at $125.19 on Friday. Citigroup Inc. has a twelve month low of $71.65 and a twelve month high of $135.29. The firm has a fifty day simple moving average of $120.72 and a 200 day simple moving average of $114.77. The company has a market capitalization of $213.51 billion, a PE ratio of 15.51, a P/E/G ratio of 0.56 and a beta of 1.14. 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 (NYSE:C - Get Free Report) last announced its earnings results on Tuesday, April 14th. The company reported $3.06 earnings per share for the quarter, topping analysts' consensus estimates of $2.63 by $0.43. Citigroup had a net margin of 9.35% and a return on equity of 9.19%. The business had revenue of $24.63 billion during the quarter, compared to the consensus estimate of $22.96 billion. During the same quarter last year, the firm earned $1.96 earnings per share. Citigroup's quarterly revenue was up 14.1% on a year-over-year basis. On average, sell-side analysts forecast that Citigroup Inc. will post 10.65 EPS for the current year.

Citigroup Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 22nd. Investors of record on Monday, May 4th will be paid a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Monday, May 4th. Citigroup's dividend payout ratio (DPR) is currently 29.74%.

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

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. The Goldman Sachs Group raised their price target on shares of Citigroup from $137.00 to $151.00 and gave the company a "buy" rating in a research note on Wednesday, April 15th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Citigroup in a research note on Monday, April 20th. Zacks Research downgraded shares of Citigroup from a "strong-buy" rating to a "hold" rating in a research note on Friday, February 20th. Morgan Stanley raised their price target 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. Finally, Oppenheimer reissued an "outperform" rating and set a $145.00 target price on shares of Citigroup in a research note on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, Citigroup currently has a consensus rating of "Moderate Buy" and a consensus price target of $137.62.

More Citigroup News

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citigroup shareholders approved an expanded stock incentive plan at the company’s May 20 annual meeting, which should give management more flexibility to retain and motivate employees through equity compensation. Citigroup Shareholders Approve Expanded Stock Incentive Plan
• Positive Sentiment: Several commentary pieces highlighted Citigroup as undervalued or attractive for income-focused investors, reinforcing the view that the stock still has room to rerate after recent earnings improvement. 5 Most Undervalued US Stocks According to Hedge Funds Why Citigroup (C) is a Top Dividend Stock for Your Portfolio
• Neutral Sentiment: Citigroup also remained active in market commentary on India IPOs and currency controls, but these reports are more about its broader banking views than a direct business update for the company. Citi sees India IPOs hitting fresh records despite challenges Citi Sees India IPOs Hitting Fresh Records Despite Challenges
• Neutral Sentiment: There was also a report that Trump backed away from requiring banks to collect citizenship information, which slightly reduces regulatory overhang but does not materially change Citigroup’s near-term fundamentals. Trump backs down from idea of banks collecting citizenship information
• Negative Sentiment: On the other hand, Citi faced fresh governance scrutiny after a separate report said more shareholders voted against the bank’s say-on-pay proposal, signaling some dissatisfaction with executive compensation practices. More Citi shareholders vote 'no' on say-on-pay

Insiders Place Their Bets

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

About Citigroup

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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