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Citigroup Inc. (C)

NYSE - NYSE Delayed price. Currency in USD
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64.24-1.06 (-1.62%)
At close: 04:02PM EST
64.17 -0.07 (-0.11%)
After hours: 07:59PM EST
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  • c
    christopher
    Fraser train also passing Taiwan. Pass go and collect another $2 Bil. Can you smell those lovely buybacks coming. With the guarantee buyer of 80 Million shares over the next two quarters. People aren't going to want to sell with this guaranteed buyer on the other side for less than tangible. See you at $80.

    DJ Citigroup Nears Sale of Taiwan Consumer-Banking Business -- WSJ
    3:57 AM ET 1/18/22 | Dow Jones

    HONG KONG -- Citigroup Inc. is nearing a sale of its retail banking franchise in Taiwan to DBS Group Holdings Ltd. for around $2 billion, according to a person familiar with the matter, as the New York-based bank speeds up its strategic shift in Asia.

    A deal with Singapore-based DBS could be announced before the end of this month, and it would include the transfer of all of Citigroup's Taiwan consumer-banking staff, the person said. The U.S. bank's Taiwan retail business includes 45 branches, mortgage lending and a large credit-card business.

    Final details for the Taiwanese sale are under deliberation, and the transaction is likely to be valued at 50 billion to 60 billion New Taiwan dollars, or the equivalent of $1.8 billion to $2.2 billion, according to the person. That amount includes the net asset value of Citigroup's operations as well as a premium for them.
  • k
    kulis
    http://the-alphatrader.com/ is a must for any trader. Their watchlist which covers pre-market movers is one of the best researched in the industry. I don’t start trading without reading their daily email each morning!
  • R
    Rami
    Tangible book value over $79. Freeing up significant capitol with sales that will return to shareholders. Dividend over 3%. Buybacks starting back up and at this price should buy back 8% of shares this year. Below $70 is a strong buy.
  • W
    White
    I like the new direction. $330B enterprise value. Not sure how far below tangible book the market thinks is reasonable but I am a buyer. Finally some long term strategy and vision. Credit demand going to be strong in a rising interest rate environment.
  • R
    Rami
    This is a good day for Citi to buy back 2 million shares. 10 year at 1.9%….
  • c
    christopher
    Fraser Train just asked everyone to sell management 40 Million shares a quarter. They are going to have a hard time finding that many shares under tangible book. This 80 Million share purchase over the next 2 quarter is going to be rocket fuel for the shares. Why would anyone sell for less when you have a guaranteed buyer. JPM and BAC are forced to buy at 2× tangible book. C will be in the see boat as their float is only 1 Billion shares with a huge influx of people looking for high dividend payouts and valuation that provide some form of safety.
  • R
    Rami
    BAC numbers give us some market reassurance. The path to $70 short term continues.
  • J
    Just
    I do not think bank industry is attractive in a short term. It is almost certain now banks are vulnerable to expense growth on many fronts including wage inflation and technology spend. The revenue trajectory is still depending on growth in loans and rate level discovery from The Fed, regulatory pressure and uncertain economic growth. Buybacks and dividends will definitely support valuations going forward. On top higher rates would probably push markets lower as algorithms tactically reprice valuations on market beta. In my opinion it is too early to buy or add bank shares for longer term investors.
  • f
    felix
    “Jane Fraser puts an end to a failed 50-year vision,” Mike Mayo, Wells Fargo bank analyst, said when the sales were announced last year.The global retail banking model was based on the assumption that banks could seamlessly service a high-end consumer who regularly travels around the world for work and vacation but that “global consumer customer never materialised”, Mayo said.
  • A
    Andre
    For the first time I will say: this stock is a strong BUY. I have been in this blog for 8 years. I have always complained about C leadership including Fraser (she still lacks a lot of communication skills). However, seen JPM going down like that makes me think about it. Finance ETFs will have to change their fund allocations. C will be the benefit. Additionally, I do not think the results were that bad as analysts were saying this morning. It looks promising! It will take at least 2 years though to get full appreciation for C shares.
  • E
    ErnstG
    Citi is an amazing turn-around story.
    Citi is on its 13th year of its 3-year turn-around plan launched in 2009 aimed to shrink its bloated balance sheet, shed failing businesses and return to meaningful profitability and returning value to its long suffering investors.
    It has 3rd CEO since global financial crisis, and with the appointment of ESG and Diversity&Inclusion compliant executive leadership, the hope is that 3rd time will be the charm.
  • J
    Just
    Citi is a HOLD at best. There was very little to nothing in the call to justify a buy thesis. Even for the long run there is too much uncertain. Commercial banking and wealth management are mentioned as growth business lines with no outlined sub-strategies. There is still quite long time ahead for expenses to come down a bit and it was mentioned that there will be even expense growth. Buybacks and other related capital plans show no longer term trends and still under short term ( quarterly) planning considerations. Productivity savings are running around 300-400 Mill and not enough to offset growth in expenses. The most important is that trajectory of revenue growth is still some time away fro being material and understandable. Restructuring continues and exits will take some time before actual results are accounted and actualized. Long term stock price performance is market or industry perform. Industry return gap is expected over time but investors have to wait for more timing details in March.

    I do not think buybacks or dividends will lead to higher market capitalization in the short term without investors seeing path of improvement in operational leverage.
  • S
    Slim
    Great buying opportunity!!!! I’m already overweight but if it pulls back another dollar I’ll have to add
  • J
    Just
    As I said it is a HOLD. It is also true that SELL is less rational at current pricing for investor. For a trader or price taker with nice run from below 60 it could be an opportunity to lock into profit. The problem for a SELL is that large institutional funds like Vanguard or Black Rock could still drive stock price higher on demand for their structured products. Macro outlook for rates is quite constructive for the industry and massive buying in institutional fund shares could be a tailwind for Citi. However Vanguard and others do not buy individual bank stocks for investments. They sell structured products and passive investments for clients and collect fees staying fully hedged to market volatility. While they dominate in supply/demand equation of financial markets, their market activities are more of a money flow short term trader rather than long term business investor. This is why Market Perform is also applicable to Citi shares.
  • J
    JAY L
    I think his will rise 5% next week is my prediction..............low PE................Strong dividend................any takers ?
  • R
    Ricardo
    Factor rotation financials down, energy flat, tech up , Financials still not in great shape
  • f
    felix
    On January 14, CFRA upgraded Citigroup to a Buy from a Hold, but maintained the price target of $76 (13.55% upside potential).
    CFRA’s positive stance is based on the bank’s restructuring moves in 2022 under the new CEO’s regime.
    The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 8 Buys and 7 Holds. The average Citigroup stock price prediction of $77.79 implies 16.23% upside potential to current levels. Shares have jumped 7.4% over the past year.
  • J
    Just
    After JPM Goldman disappoints now. Good news for Citi investors is that rivals are showing weaker results in areas that have been strength for many quarters in the past with the exception of investment banking. This could bode well for relative valuation. In Q4 The industry has been seeing cost increases across the board compensation and technology with weaker profitability and revenue.
  • R
    Rami
    Added to my position here at $65.45. Good luck all!
  • c
    christopher
    Fraser Train is leaving the station. Now we all know why it was outperforming all other large banks. Fraser knows the Mexico business better then nearly anyone else. I bet someone approached them about the Mexico acquisition as it fits within the overall strategy. This is going to be a large cash influx as the consumer bank produced over 1.2B in income last year. You put a decent multiple on that $1.2 Bil as well as release the additional 4Bil of Tangible book and we all understand why C was running all day with no news.