QRG Capital Management Inc. Buys 28,171 Shares of Citigroup Inc. $C

Key Points

• QRG Capital Management increased its Citigroup stake by 7.5%, purchasing 28,171 additional shares to own 404,784 shares valued at approximately $56.6 million. Hedge funds and other institutional investors collectively own 71.72% of Citi’s stock.
• Citigroup reported strong quarterly results, with EPS of $3.15 beating estimates of $2.74 and revenue rising 14.5% year over year to $24.77 billion. The company also raised its quarterly dividend to $0.67 per share, representing a 2.0% annualized yield.
• Analysts maintain a generally positive outlook, with Citi holding a consensus “Moderate Buy” rating and an average price target of $145.22. However, rising card delinquencies and charge-offs could pressure consumer-credit profitability.

QRG Capital Management Inc. raised its stake in Citigroup Inc. (NYSE:C - Free Report) by 7.5% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 404,784 shares of the company's stock after purchasing an additional 28,171 shares during the period. QRG Capital Management Inc.'s holdings in Citigroup were worth $56,560,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also modified their holdings of the company. Andra AP fonden raised its stake in shares of 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 acquiring an additional 50,100 shares in the last quarter. State Street Corp boosted its stake in Citigroup by 3.7% in the second quarter. State Street Corp now owns 80,956,349 shares of the company's stock valued at $11,199,986,000 after acquiring an additional 2,913,701 shares in the last quarter. Smith Chas P & Associates PA Cpas acquired a new stake in Citigroup in the second quarter valued at approximately $232,000. Talon Private Wealth LLC grew its holdings in 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 purchasing an additional 235 shares during the last quarter. Finally, Core Capital Management & Research inc. purchased a new position in Citigroup in the second quarter worth $658,000. 71.72% of the stock is owned by hedge funds and other institutional investors.

Citigroup News Roundup

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citigroup launched Citi Commerce Media, a platform that uses transaction data from more than 70 million U.S. customers and 6.5 billion annual transactions to deliver targeted advertising and offers. The initiative could create a new, higher-margin revenue stream for the consumer cards business. Citi Unveils Citi Commerce Media
• Positive Sentiment: Citi said it will redeem €1.5 billion of fixed-rate/floating-rate notes due in 2027 on October 8. The move represents proactive liability management and eliminates future refinancing exposure, though the cash outlay limits the immediate financial benefit. Citigroup Announces Notes Redemption
• Neutral Sentiment: Recent Citi-related activity—including forecasts on Micron and Alibaba and the downgrade of Boston Scientific—highlights the strength of its research and investment-banking franchise, but these analyst actions have little direct effect on Citigroup’s earnings outlook. Citigroup Downgrades Boston Scientific
• Negative Sentiment: U.S. card delinquencies and net charge-offs rose sequentially in August across major issuers. Although levels remained below those of a year earlier, the increase signals emerging consumer-credit pressure that could raise provisions and weigh on Citi’s cards profitability. U.S. Card Issuers Delinquencies and Charge-Offs
• Negative Sentiment: Federal Reserve officials continue to warn that persistent inflation may require a more restrictive policy stance. Higher rates can support lending margins, but they also increase funding costs, slow economic activity and heighten credit risks. Fed’s Collins Flags Inflation Risks

Wall Street Analyst Weigh In

Several analysts have recently commented on the company. Wall Street Zen lowered Citigroup from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Bank of America upped their target price on Citigroup from $170.00 to $176.00 and gave the company a "buy" rating in a research report on Tuesday, July 7th. Argus set a $150.00 price target on Citigroup in a research note on Wednesday, July 15th. Oppenheimer downgraded Citigroup from an "outperform" rating to a "market perform" rating in a report on Tuesday, June 30th. Finally, Wells Fargo & Company boosted their price target on Citigroup from $162.00 to $165.00 and gave the stock an "overweight" rating in a research note on Thursday, June 18th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $145.22.

Citigroup Stock Performance

Shares of NYSE:C traded down $0.60 on Wednesday, hitting $131.87. 8,734,603 shares of the company were exchanged, compared to its average volume of 12,697,355. The firm has a market capitalization of $224.92 billion, a P/E ratio of 14.24, a price-to-earnings-growth ratio of 0.61 and a beta of 1.12. 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 Inc. has a 1-year low of $93.66 and a 1-year high of $147.96. The stock's 50 day moving average price is $134.23 and its 200 day moving average price is $129.46.

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

Citigroup Increases Dividend

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

Citigroup Profile

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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