Verde Servicos Internacionais S.A. Makes New Investment in Citigroup Inc. $C

Key Points

• Verde Servicos Internacionais S.A. opened a new position in Citigroup during the fourth quarter, buying 81,165 shares worth about $9.47 million. The stake makes up 3.0% of Verde’s portfolio and is its 15th-largest holding.
• Citigroup reported strong quarterly results, with EPS of $3.06 and revenue of $24.63 billion, both above analyst expectations. The company also boosted returns to shareholders by authorizing a $30 billion share buyback and announcing a quarterly dividend of $0.60 per share.
• Recent news was mostly positive for Citi’s outlook, including a new private capital program with BlackRock’s HPS and signs of improving credit quality. However, some caution remains after shareholder support for its say-on-pay vote fell to about 60% and CFRA reportedly downgraded the stock to Hold.

Verde Servicos Internacionais S.A. acquired a new stake in shares of Citigroup Inc. (NYSE:C - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 81,165 shares of the company's stock, valued at approximately $9,471,000. Citigroup accounts for 3.0% of Verde Servicos Internacionais S.A.'s portfolio, making the stock its 15th biggest position.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Vanguard Group Inc. lifted its holdings in shares of Citigroup by 3.1% during the fourth quarter. Vanguard Group Inc. now owns 163,239,926 shares of the company's stock valued at $19,048,467,000 after acquiring an additional 4,938,923 shares during the period. Capital World Investors lifted its holdings in shares of Citigroup by 6.5% during the third quarter. Capital World Investors now owns 47,262,626 shares of the company's stock valued at $4,797,292,000 after acquiring an additional 2,871,074 shares during the period. Fisher Asset Management LLC lifted its holdings in shares of Citigroup by 2.7% during the third quarter. Fisher Asset Management LLC now owns 33,040,513 shares of the company's stock valued at $3,353,612,000 after acquiring an additional 879,056 shares during the period. Franklin Resources Inc. lifted its holdings in shares of Citigroup by 1.8% during the third quarter. Franklin Resources Inc. now owns 32,870,559 shares of the company's stock valued at $3,336,362,000 after acquiring an additional 580,027 shares during the period. Finally, Bank of New York Mellon Corp lifted its holdings in shares of Citigroup by 17.6% during the third quarter. Bank of New York Mellon Corp now owns 28,125,995 shares of the company's stock valued at $2,854,788,000 after acquiring an additional 4,211,099 shares during the period. 71.72% of the stock is owned by institutional investors.

More Citigroup News

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citi launched a €15 billion private capital program with BlackRock’s HPS to expand direct lending and capital solutions in EMEA, supporting fee growth and private-credit ambitions. Citigroup Taps €15b Private Capital To Grow EMEA Fee Income
• Positive Sentiment: Citigroup said India’s IPO market could hit fresh records in the second half of the year, signaling potential strength in capital-markets activity. Citi Sees India IPOs Hitting Fresh Records Despite Challenges
• Positive Sentiment: Citi also noted improving India macro conditions could help stabilize the rupee and support broader regional business activity. Citi Sees India Tightening Currency Controls to Halt Rupee Slump
• Positive Sentiment: Recent commentary highlighted improving Citigroup card delinquencies and charge-offs in April, which is supportive for credit quality. Citigroup's Card Delinquencies & Charge-Offs Improve Y/Y in April
• Neutral Sentiment: Citigroup was also mentioned in articles on dividend appeal and analyst opinions, but those pieces were largely reiterations of the stock’s existing fundamentals rather than new catalysts. Why Citigroup (C) is a Top Dividend Stock for Your Portfolio
• Neutral Sentiment: There was also a bond listing and broader market commentary naming Citi, but these items do not appear to be meaningful stock drivers today.
• Negative Sentiment: Support for Citi’s say-on-pay resolution fell to about 60%, pointing to some shareholder unease over executive compensation. More Citi shareholders vote 'no' on say-on-pay
• Negative Sentiment: CFRA reportedly downgraded Citigroup to Hold, which may temper enthusiasm even as longer-term fundamentals remain solid. Bank of America Cut to Hold by CFRA: Is the Big Bank Trade Running Out of Gas?

Insider Activity

In other news, insider Edward Skyler sold 25,000 shares of the business's stock in a transaction dated Wednesday, April 15th. The stock was 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 directly owned 182,022 shares in the company, valued at approximately $23,919,511.02. The trade was a 12.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director John Cunningham Dugan sold 2,117 shares of the business's stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $125.30, for a total value of $265,260.10. Following the transaction, 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 disclosure for this sale is available in the SEC filing. 0.11% of the stock is currently owned by insiders.

Citigroup Stock Performance

Shares of NYSE:C opened at $124.80 on Thursday. The stock has a market capitalization of $212.85 billion, a P/E ratio of 15.46, a P/E/G ratio of 0.54 and a beta of 1.14. Citigroup Inc. has a 1-year low of $71.65 and a 1-year high of $135.29. The company has a current ratio of 0.99, a quick ratio of 0.99 and a debt-to-equity ratio of 1.59. The business has a 50-day moving average price of $120.40 and a two-hundred day moving average price of $114.60.

Citigroup (NYSE:C - Get Free Report) last announced its quarterly earnings data on Tuesday, April 14th. The company reported $3.06 earnings per share for the quarter, topping the consensus estimate of $2.63 by $0.43. The firm had revenue of $24.63 billion during the quarter, compared to analysts' expectations of $22.96 billion. Citigroup had a return on equity of 9.19% and a net margin of 9.35%.The company's quarterly revenue was up 14.1% compared to the same quarter last year. During the same period in the previous year, the business posted $1.96 EPS. Equities analysts predict that Citigroup Inc. will post 10.65 earnings per share for the current year.

Citigroup announced that its board has initiated a share repurchase program on Thursday, May 7th that allows the company to buyback $30.00 billion in shares. This buyback authorization allows the company to repurchase up to 13.7% of its shares through open market purchases. Shares buyback programs are often an indication that the company's board believes its shares are undervalued.

Citigroup Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, May 22nd. Stockholders of record on Monday, May 4th will be given a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 1.9%. The ex-dividend date is Monday, May 4th. Citigroup's payout ratio is presently 29.74%.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Oppenheimer reissued an "outperform" rating and set a $145.00 price objective on shares of Citigroup in a report on Friday, May 8th. Wells Fargo & Company lifted their price objective on Citigroup from $160.00 to $162.00 and gave the company an "overweight" rating in a report on Wednesday, April 29th. Barclays lifted their price target on Citigroup from $146.00 to $154.00 and gave the company an "overweight" rating in a report on Wednesday, April 15th. Wall Street Zen raised Citigroup from a "hold" rating to a "buy" rating in a report on Saturday, May 9th. Finally, Zacks Research cut Citigroup from a "strong-buy" rating to a "hold" rating in a report on Friday, February 20th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $137.62.

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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