Wasatch Advisors LP Cuts Stock Holdings in Citigroup Inc. $C

Key Points

• Wasatch Advisors reduced its Citigroup stake by 19.6% in the second quarter, selling 11,113 shares and retaining 45,570 shares worth approximately $6.38 million. Institutional investors collectively own 71.72% of Citigroup.
• Citigroup reported a strong quarter, with earnings of $3.15 per share and revenue of $24.77 billion, surpassing analyst expectations; revenue increased 14.5% year over year.
• Citigroup raised its quarterly dividend to $0.67 per share and authorized a $30 billion share-repurchase program. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $145.22.

Wasatch Advisors LP lowered its position in Citigroup Inc. (NYSE:C - Free Report) by 19.6% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 45,570 shares of the company's stock after selling 11,113 shares during the period. Wasatch Advisors LP's holdings in Citigroup were worth $6,378,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors also recently added to or reduced their stakes in C. Cora Capital Advisors LLC raised its stake in shares of Citigroup by 3.1% during the 1st quarter. Cora Capital Advisors LLC now owns 2,609 shares of the company's stock worth $296,000 after buying an additional 78 shares in the last quarter. CFS Investment Advisory Services LLC boosted its stake in shares of Citigroup by 0.4% in the first quarter. CFS Investment Advisory Services LLC now owns 20,596 shares of the company's stock valued at $2,336,000 after buying an additional 79 shares in the last quarter. Verus Capital Partners LLC boosted its stake in shares of Citigroup by 3.1% in the fourth quarter. Verus Capital Partners LLC now owns 2,748 shares of the company's stock valued at $321,000 after buying an additional 82 shares in the last quarter. Somerset Trust Co grew its holdings in Citigroup by 0.6% during the second quarter. Somerset Trust Co now owns 14,955 shares of the company's stock worth $2,093,000 after acquiring an additional 82 shares during the period. Finally, CFO Capital Management LLC grew its holdings in Citigroup by 1.5% during the first quarter. CFO Capital Management LLC now owns 5,495 shares of the company's stock worth $590,000 after acquiring an additional 83 shares during the period. Hedge funds and other institutional investors own 71.72% of the company's stock.

Citigroup Stock Performance

Shares of C stock opened at $137.56 on Thursday. The stock has a fifty day moving average price of $137.17 and a 200 day moving average price of $125.34. The company has a debt-to-equity ratio of 1.71, a quick ratio of 0.99 and a current ratio of 0.99. The stock has a market cap of $234.62 billion, a PE ratio of 14.86, a P/E/G ratio of 0.61 and a beta of 1.12. Citigroup Inc. has a 1 year low of $90.68 and a 1 year high of $147.96.

Citigroup (NYSE:C - Get Free Report) last posted its earnings results on Tuesday, July 14th. The company reported $3.15 earnings per share for the quarter, beating 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 company had revenue of $24.77 billion for the quarter, compared to analyst estimates of $23.74 billion. During the same quarter in the prior year, the company earned $1.96 earnings per share. Citigroup's revenue was up 14.5% compared to the same quarter last year. Sell-side analysts forecast that Citigroup Inc. will post 11.2 earnings per share for the current fiscal year.

Citigroup Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Monday, August 3rd will be given a $0.67 dividend. The ex-dividend date is Monday, August 3rd. This represents a $2.68 annualized dividend and a dividend yield of 1.9%. This is a boost from Citigroup's previous quarterly dividend of $0.60. Citigroup's payout ratio is presently 28.94%.

Citigroup declared that its Board of Directors 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 buy up to 13.7% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on C shares. Royal Bank Of Canada reissued an "outperform" rating and issued a $150.00 target price on shares of Citigroup in a report on Wednesday, July 15th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Citigroup in a research note on Friday, July 17th. Morgan Stanley increased their price target on shares of Citigroup from $154.00 to $164.00 and gave the company an "overweight" rating in a report on Monday, June 29th. Oppenheimer cut shares of Citigroup from an "outperform" rating to a "market perform" rating in a research note on Tuesday, June 30th. Finally, Wells Fargo & Company boosted their price objective on shares of Citigroup from $162.00 to $165.00 and gave the stock an "overweight" rating in a report on Thursday, June 18th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Citigroup currently has an average rating of "Moderate Buy" and an average target price of $145.22.

Citigroup News Summary

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Healthcare banking expansion: Citigroup appointed new leadership covering biotechnology, medical technology, biopharmaceuticals and acute care. The changes position the bank to capture increased healthcare mergers-and-acquisitions and capital-markets activity, potentially supporting fee revenue. Citi Taps New Healthcare Banking Leadership as Dealmaking Heats Up
• Positive Sentiment: Strong operating momentum: Citigroup’s latest quarterly results exceeded expectations, with earnings per share of $3.15 versus a $2.74 consensus estimate and revenue of $24.77 billion versus $23.74 billion expected. Revenue rose 14.5% year over year, reinforcing the stock’s positive earnings momentum.
• Positive Sentiment: Advisory and financing activity: Citi led a $414 million financing tranche for restaurant-commerce company inKind, bringing the company’s total capital raised above $1.2 billion. The transaction highlights Citi’s ability to win large private-company financing mandates and generate investment-banking fees. inKind Secures $414 Million in Financing Led by Citi and Cross River
• Neutral Sentiment: New bond offerings: Citigroup announced fixed-income offerings, including 5.05% notes due 2030 and zero-coupon notes due 2056. The deals provide evidence of continued market access and funding flexibility, although investors may monitor borrowing costs and the effect of additional debt on margins and leverage. Is Citigroup Undervalued After Its Latest Bond Offerings?
• Neutral Sentiment: Citi research remains active: Analysts reiterated a bullish outlook for silver and raised their MongoDB price target, but these calls primarily affect Citi’s research franchise and do not materially change Citigroup’s own earnings outlook. Silver Could Surge to $90, Citi Says

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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