S&CO Inc. Buys New Shares in Citigroup Inc. $C

Key Points

• S&CO Inc. acquired 39,794 Citigroup shares in the second quarter, valued at approximately $5.57 million. Institutional investors collectively own 71.72% of Citigroup.
• Citigroup reported quarterly EPS of $3.15, beating estimates of $2.74, while revenue rose 14.5% year over year to $24.77 billion. The board also authorized a $30 billion share-repurchase program.
• The bank raised its quarterly dividend from $0.60 to $0.67 per share, equivalent to an annualized $2.68 payout and a 1.9% yield; analysts maintain a “Moderate Buy” consensus with a $145.22 target price.

S&CO Inc. bought a new position in shares of Citigroup Inc. (NYSE:C - Free Report) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 39,794 shares of the company's stock, valued at approximately $5,569,000.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its stake in shares of Citigroup by 3.1% during the 4th quarter. Vanguard Group Inc. now owns 163,239,926 shares of the company's stock worth $19,048,467,000 after purchasing an additional 4,938,923 shares during the last quarter. Geode Capital Management LLC lifted its stake in Citigroup by 0.4% in 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 last quarter. Franklin Resources Inc. lifted its stake in Citigroup by 4.0% in 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 last quarter. Fisher Asset Management LLC grew its holdings in Citigroup by 2.6% during the fourth quarter. Fisher Asset Management LLC now owns 33,887,285 shares of the company's stock worth $3,954,307,000 after purchasing an additional 846,772 shares during the period. Finally, Bank of America Corp DE grew its holdings in Citigroup by 2.8% during the first quarter. Bank of America Corp DE now owns 26,869,012 shares of the company's stock worth $3,047,215,000 after purchasing an additional 728,043 shares during the period. 71.72% of the stock is owned by institutional investors.

Citigroup Stock Up 0.3%

Citigroup stock opened at $139.21 on Friday. The stock has a market cap of $237.43 billion, a P/E ratio of 15.03, a P/E/G ratio of 0.63 and a beta of 1.12. The company has a quick ratio of 0.99, a current ratio of 0.99 and a debt-to-equity ratio of 1.71. Citigroup Inc. has a twelve month low of $90.68 and a twelve month high of $147.96. The company's 50-day moving average price is $137.38 and its two-hundred day moving average price is $125.62.

Citigroup (NYSE:C - Get Free Report) last issued its quarterly earnings data on Tuesday, July 14th. The company reported $3.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.74 by $0.41. Citigroup had a net margin of 10.23% and a return on equity of 10.15%. The firm had revenue of $24.77 billion during the quarter, compared to the consensus estimate of $23.74 billion. During the same period last year, the business posted $1.96 earnings per share. The business's revenue for the quarter was up 14.5% compared to the same quarter last year. As a group, analysts expect that Citigroup Inc. will post 11.2 EPS for the current year.

Citigroup declared that its Board of Directors has approved a share repurchase plan on Thursday, May 7th that permits the company to repurchase $30.00 billion in outstanding shares. This repurchase authorization permits the company to purchase up to 13.7% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board of directors believes its stock is undervalued.

Citigroup Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Monday, August 3rd will be paid a dividend of $0.67 per share. This represents a $2.68 dividend on an annualized basis and a dividend yield of 1.9%. This is an increase from Citigroup's previous quarterly dividend of $0.60. The ex-dividend date is Monday, August 3rd. Citigroup's dividend payout ratio is 28.94%.

Key Citigroup News

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Kard acquisition strengthens U.S. cards strategy: Citi agreed to acquire Kard Financial, a commerce-media and rewards platform that connects banks, fintechs and merchants. The deal is intended to improve personalized offers, customer engagement and merchant-funded rewards, potentially supporting growth and profitability in Citi’s U.S. Consumer Cards business. Terms were not disclosed. Citi Plans to Acquire Kard to Deliver More Personalized Rewards
• Positive Sentiment: New financing activity highlights institutional banking strength: Citibank acted as lender and agent in an approximately $4.6 billion syndicated loan supporting a Japan-U.S. strategic investment initiative. The transaction reinforces Citi’s cross-border corporate and government-related financing capabilities and could generate additional fees and client relationships. Citigroup Participates in Financing for Japan-U.S. Strategic Investment Initiative
• Positive Sentiment: Large asset-servicing mandate adds recurring revenue potential: Citi Investor Services won a full middle-office mandate from Aegon Asset Management covering $380 billion in assets under management, expanding an existing 20-year relationship. The award supports the growth of Citi’s fee-based services and institutional franchise. Citi Investor Services Wins US$380 Billion Middle Office Mandate from Aegon Asset Management
• Neutral Sentiment: Management supports clearer crypto rules: CEO Jane Fraser called a strong version of the proposed CLARITY Act “excellent for the system,” though unresolved issues remain for banks. Clearer regulation could eventually expand institutional digital-asset activity, but the near-term earnings impact is uncertain. Bitcoin to $1M If CLARITY Act Passes? Citi CEO Discusses the CLARITY Act
• Negative Sentiment: Valuation and macro risks could limit upside: Citi’s stock has advanced substantially over the past year, prompting investors to question how much of the turnaround is already reflected in the price. The bank also noted softer household and business borrowing in China, while its commodities team is cautious about chasing rallies in gold—factors that could temper market enthusiasm. Is Citigroup a Solid Investment Option After a 51.2% Jump in a Year?

Wall Street Analyst Weigh In

Several analysts have issued reports on C shares. Keefe, Bruyette & Woods upped their price objective on Citigroup from $140.00 to $153.00 and gave the company an "outperform" rating in a research note on Friday, May 8th. Oppenheimer downgraded Citigroup from an "outperform" rating to a "market perform" rating in a research note on Tuesday, June 30th. Morgan Stanley boosted their target price on Citigroup from $154.00 to $164.00 and gave the stock an "overweight" rating in a report on Monday, June 29th. Weiss Ratings restated a "buy (b)" rating on shares of Citigroup in a research note on Friday, July 17th. Finally, UBS Group cut their price target on Citigroup from $150.00 to $142.00 and set a "neutral" rating for the company in a report on Monday, August 3rd. Two equities 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, Citigroup has an average rating of "Moderate Buy" and a consensus target price of $145.22.

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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