Why Should You Put Citigroup Inc. (NYSE: C) On Your Portfolio?


    BlackRock Fund Advisors recently announced the acquisition of new stake in Citigroup Inc. (NYSE:C). The institutional investor has increased its shareholding in the Financial company by 0.09% to 95.31 million shares with purchase of 85456.0 shares. This fresh investment now brings its stake to 4.58% valued currently at $4.77 billion. In addition, Norges Bank Investment Management raised its holdings by 0.72 million to 27.29 million shares.

    With over 19.72 million Citigroup Inc. (C) shares trading Monday and a closing price of $51.06 on the day, the dollar volume was approximately $1.01 billion. The shares have shown a negative weekly performance of -0.70% and its price on 08/24/20 gained nearly 3.57%. Currently, there are 2.08B common shares owned by the public and among those 2.08B shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 26 analysts who have offered their price forecasts for C have a consensus price objective of $68.88. The analysts have set the share’s price value over the next 12 months at a high of $106.00 and a low of $46.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Citigroup Inc. stock is 1.90 for the next 12 months. The average price target is 26.75% above its last price level and an upside to the estimated low will see the stock lose -11.0% over that period. But an upside of 51.83% will see the stock hit the forecast high price target while mean target price for the stock is $66.50.

    Insiders at the company have transacted a total of 149 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 132 of these insider trades were purchases, accounting for 591,177 shares. Insider sales of the common stock occurred on 17 occasions, with total insider shares sold totaling 195,521 shares.

    The top 3 mutual fund holders in Citigroup Inc. are Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and Government Pension Fund – Global. Vanguard Total Stock Market Index owns 59.22 million shares of the company’s stock, all valued at over $2.96 billion. The company sold 89949.0 shares recently to bring their total holdings to about 2.85% of the shares outstanding. Vanguard 500 Index Fund sold -0.26 million shares to see its total holdings shrink to 42.93 million shares valued at over $2.15 billion and representing 2.06% of the shares outstanding. Government Pension Fund – Global bought 0.85 million shares to bring its total holdings to over 26.53 million shares at a value of $1.33 billion. Government Pension Fund – Global now owns shares totaling to 1.27% of the shares outstanding.

    Shares of Citigroup Inc. (NYSE: C) opened at $49.90, up $0.6 from a prior closing price of $49.30. However, the script later closed the day at $51.06, up 3.57%. The company’s stock has a 5-day price change of -0.70% and 6.00% over the past three months. C shares are trading -36.09% year to date (YTD), with the 12-month market performance down to -17.58% lower. It has a 12-month low price of $32.00 and touched a high of $83.11 over the same period. Currently, 19.72 million shares have been traded, compared to an average intraday trading volume of 25.37 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -0.59%, -0.84%, and -14.46% respectively.

    Institutional ownership of Citigroup Inc. (NYSE: C) shares accounts for 78.90% of the company’s 2.08B shares outstanding. Mutual fund holders own 37.77%, while other institutional holders and individual stakeholders account for 40.89% and 0.42% respectively.

    It has a market capitalization of $106.90B and a beta (3y monthly) value of 1.78. The stock’s trailing 12-month PE ratio is 8.81, while the earnings-per-share (ttm) stands at $5.80. The company has a debt-to-equity ratio at 1.51. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.40% over the week and 2.32% over the month.

    Analysts forecast that Citigroup Inc. (C) will achieve an EPS of $0.82 for the current quarter, $0.78 for the next quarter and $6.04 for 2021. The lowest estimate earnings-per-share for the quarter is $0.05 while analysts give the company a high EPS estimate of $1.45. Comparatively, EPS for the current quarter was $2.07 a year ago. Earnings per share for the fiscal year are expected to increase by 20.90%, and 82.90% over the next financial year. EPS should shrink at an annualized rate of -3.27% over the next five years, compared to 29.50% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 26 brokerage firm advisors rate Citigroup Inc. (C) as a “Strong Buy” at a consensus score of 1.90. Specifically, 20 Wall Street analysts polled rate the stock as a buy, while 3 of the 26 advise that investors “hold,” and 1 rated it as a “Sell.”

    Looking at the support for the C, a number of firms have released research notes about the stock. Odeon stated their Sell rating for the stock in a research note on August 18, 2020, with the firm’s price target at. Odeon coverage for the Citigroup Inc. (C) stock in a research note released on July 17, 2020 offered a Hold rating with a price target of. Seaport Global Securities was of a view on July 08, 2020 that the stock is Buy, while Societe Generale gave the stock Buy rating on July 07, 2020, issuing a price target of. Standpoint Research on their part issued Hold rating on June 09, 2020.


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