Citigroup (NYSE:C) Hits New 52-Week High – Should You Buy?

Citigroup Inc. (NYSE:C) shares reached a new 52-week high during mid-day trading on Friday . The stock traded as high as $135.83 and last traded at $132.39, with a volume of 4196703 shares changing hands. The stock had previously closed at $135.15.

More Citigroup News

Here are the key news stories impacting Citigroup this week:

• Positive Sentiment: Citigroup was reported to be joining JPMorgan Chase and Bank of America in a new tokenized deposit network, a move that could help major banks compete with stablecoins and other crypto-based payment systems. JPMorgan, Citi and Big Banks Plan New Tokenized Deposit System to Answer Crypto
• Positive Sentiment: Citi was also highlighted for using AI to cut account-opening document review time from over an hour to 15 minutes, suggesting potential efficiency gains and cost savings for the bank. Citi Used AI to Shrink a 60-Minute Document Review to 15 Minutes
• Positive Sentiment: Several reports noted that Citigroup shares recently hit an 18-year closing high, reflecting strong momentum after the bank’s solid earnings, improved leadership changes, and favorable investor sentiment toward large banks. Why Citigroup Stock Surged to a New Multi-Year High
• Neutral Sentiment: Citi’s latest market note said global equities are at their frothiest level since 2008, but the firm still maintained a constructive stance, so this is more of a risk-warning than a direct negative for C. Citi warns global stock markets are the frothiest since 2008
• Neutral Sentiment: Citigroup also continued to make small portfolio and holding updates in various non-U.S. companies, which are unlikely to have a major near-term impact on C shares. Citigroup Group Ceases to Be Substantial Holder in Supply Network
• Negative Sentiment: A broader news item warned that bank stocks may be risky because of credit-quality concerns and possible regulatory changes, which could temper enthusiasm for the sector if conditions worsen. 3 Bank Stocks We Find Risky

Analyst Ratings Changes

C has been the topic of several research reports. Keefe, Bruyette & Woods upped their price target on shares of Citigroup from $140.00 to $153.00 and gave the company an “outperform” rating in a research note on Friday, May 8th. The Goldman Sachs Group raised their target price on shares of Citigroup from $137.00 to $151.00 and gave the stock a “buy” rating in a report on Wednesday, April 15th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $139.00 price target on shares of Citigroup in a research report on Wednesday, April 15th. Truist Financial set a $147.00 price target on Citigroup in a research report on Friday, May 1st. Finally, Wells Fargo & Company raised their price objective on Citigroup from $160.00 to $162.00 and gave the stock an “overweight” rating in a research note on Wednesday, April 29th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $137.62.

Citigroup Price Performance

The firm has a market capitalization of $224.29 billion, a P/E ratio of 16.28, a PEG ratio of 0.58 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 1.59. The business’s 50 day moving average is $124.50 and its 200-day moving average is $116.64.

Citigroup (NYSE:C) last issued its earnings results on Tuesday, April 14th. The company reported $3.06 earnings per share for the quarter, beating analysts’ consensus estimates of $2.63 by $0.43. Citigroup had a return on equity of 9.19% and a net margin of 9.35%.The firm had revenue of $24.63 billion for the quarter, compared to the consensus estimate of $22.96 billion. During the same quarter last year, the business posted $1.96 EPS. The company’s revenue was up 14.1% compared to the same quarter last year. As a group, sell-side analysts predict that Citigroup Inc. will post 10.68 EPS for the current fiscal year.

Citigroup Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 22nd. Stockholders of record on Monday, May 4th were paid a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date was Monday, May 4th. Citigroup’s dividend payout ratio (DPR) is presently 29.74%.

Citigroup announced that its Board of Directors has initiated a stock repurchase plan on Thursday, May 7th that authorizes the company to buyback $30.00 billion in outstanding shares. This buyback authorization authorizes the company to repurchase up to 13.7% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, insider Edward Skyler sold 25,000 shares of the stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $131.41, for a total value of $3,285,250.00. Following the completion of the transaction, the insider owned 182,022 shares of the company’s stock, valued at $23,919,511.02. This represents a 12.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director John Cunningham Dugan sold 2,117 shares of the company’s stock in a transaction on Friday, May 8th. The stock was sold at an average price of $125.30, for a total transaction of $265,260.10. Following the transaction, the director owned 12,194 shares of the company’s stock, valued at $1,527,908.20. This trade represents a 14.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.11% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Mcguire Capital Advisors Inc. acquired a new position in Citigroup in the 4th quarter valued at approximately $25,000. Whipplewood Advisors LLC acquired a new stake in Citigroup in the first quarter valued at $25,000. Richards Merrill & Peterson Inc. bought a new position in Citigroup during the 4th quarter worth $28,000. TD Capital Management LLC acquired a new position in Citigroup during the 4th quarter worth about $28,000. Finally, IMG Wealth Management Inc. grew its position in shares of Citigroup by 197.6% in the 1st quarter. IMG Wealth Management Inc. now owns 244 shares of the company’s stock valued at $28,000 after buying an additional 162 shares during the last quarter. Institutional investors and hedge funds own 71.72% of the company’s stock.

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.