Citigroup (NYSE:C) experienced a promising start to the week as their stock opened at $46.04 on Monday, July 3, 2023. With a market capitalization of $89.63 billion, Citigroup is a major player in the financial industry. The company’s price-to-earnings ratio stands at a promising 6.42, indicating potential for growth.
Analysts have been closely following Citigroup’s performance, and several equity research analysts have weighed in on the stock. BMO Capital Markets raised their target price on Citigroup shares from $56.00 to $68.00, giving the company an “outperform” rating. Additionally, Piper Sandler increased their target price from $47.00 to $53.00, awarding the bank a “neutral” rating.
TheStreet also upgraded their rating for Citigroup from a “c+” to a “b-,” further boosting confidence in the bank’s performance.
However, not all analysts share this optimism. Keefe, Bruyette & Woods reduced their price objective on Citigroup from $50.00 to $48.00 in a research note released on May 25th.
Currently, there is one analyst who has given Citigroup stock a sell rating while ten others have assigned a hold rating and seven have issued buy ratings.
In terms of financials, Citigroup has demonstrated resilience with its debt-to-equity ratio standing at 1.48 and current ratio being 0.95 which may stabilize it against potential market volatility.
On April 14th, during its quarterly earnings report for Q2 of fiscal year 2023, Citigroup posted impressive numbers that exceeded analysts’ expectations. They reported earnings per share (EPS) of $2.19 for the quarter compared to consensus estimates of $1.66 EPS – an outstanding beat by $0.53 per share.
Revenue for Q2 also surpassed expectations, with Citigroup generating $21.40 billion compared to the anticipated $20.07 billion. The bank’s net margin was an impressive 12.96% and return on equity stood at 7.84%.
These positive financial results were accompanied by a report of insider trading activity within the company. Zdenek Turek, an executive at Citigroup, sold 12,000 shares of the stock on April 18th for a total value of approximately $598,440. Following this transaction, Turek now owns 155,979 shares.
It is important to note that this article references data and information as of July 3, 2023 and the situation may have evolved since then.
In conclusion, while Citigroup started the week with a solid opening price and positive quarterly earnings, opinions among analysts remain mixed. It will be interesting to see how Citigroup’s performance continues in the coming months and whether it can maintain its upward trajectory in a constantly evolving financial landscape.
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Citigroup Faces Lower FY2023 Earnings Forecast Amidst Investor Adjustments and Institutional Activity
Citigroup Faces Lower FY2023 Earnings Forecast Amidst Investor Adjustments
Introduction
On July 3, 2023, Seaport Res Ptn analysts released a research note revising their earnings per share (EPS) estimates for global banking giant Citigroup Inc. (NYSE:C). The adjustment has caught the attention of institutional investors who have adapted their positions accordingly. This article delves into the revised forecasts, summarizing the changes made by Seaport Res Ptn and shedding light on recent modifications in Citigroup’s institutional holdings.
Downward Revision in FY2023 Earnings Estimate
Seaport Res Ptn analyst J. Mitchell has lowered Citigroup’s projected EPS for the fiscal year 2023 from $6.25 to $6.10 per share, citing certain factors leading to this adjustment. It is essential to understand that EPS represents a company’s profitability – a significant metric that influences stock prices and investor sentiment.
Bearing in mind that analysts’ estimates often play a crucial role in shaping investor behavior, this revision by Seaport Res Ptn could potentially impact market dynamics surrounding Citigroup.
Consensus Estimate and Future Earnings Projections
The consensus estimate for Citigroup’s full-year earnings in FY2023 currently stands at $5.89 per share, reflecting a more cautious view among financial experts. Given the recent downward revision by Seaport Res Ptn, it is evident that analysts hold varying opinions on the bank’s financial performance for this period.
Furthermore, Seaport Res Ptn also provided earnings projections for subsequent quarters and the fiscal year 2024. Notably, they estimated Q4 2023 earnings at $1.46 EPS, Q2 2024 earnings at $1.74 EPS, Q4 2024 earnings at $1.72 EPS, and FY2024 earnings at $7.00 EPS.
Institutional Investors’ Response
In response to the adjusted forecast, institutional investors have made noteworthy modifications to their holdings of Citigroup stock. Arlington Partners LLC emerged as a new player in the market by acquiring shares of the banking giant during Q4 2022. Their position is estimated to be worth around $25,000, indicating an early confidence in Citigroup’s potential.
Bell Investment Advisors Inc also demonstrated their trust in Citigroup by increasing their holdings by 72.1% during the same period. The company now holds 604 shares worth approximately $27,000, reflecting a belief in the bank’s long-term profitability and stability.
SkyView Investment Advisors LLC joined as a recent investor during Q1 2023 with an investment of $28,000 in Citigroup, further bolstering confidence among institutional investors. EWG Elevate Inc., investing $29,000 back in Q4 2022, and Grey Fox Wealth Advisors LLC with a $33,000 purchase during the same period added to this trend.
Overall, it is important to note that hedge funds and other institutional investors currently own approximately 69.39% of Citigroup’s stock. This high degree of ownership indicates significant interest among sophisticated market participants who are monitoring developments closely before making informed decisions regarding their positions.
Conclusion
Citigroup is facing a revised FY2023 earnings estimate following adjustments made by Seaport Res Ptn analysts. With a forecasted EPS decline from $6.25 to $6.10 per share for the fiscal year 2023, investor sentiments may exhibit higher levels of perplexity and bustiness owing to these revised projections.
Furthermore, institutional investors have been actively adjusting their holdings based on this new information. Established entities such as Arlington Partners LLC and Bell Investment Advisors Inc have increased their stake in Citigroup while SkyView Investment Advisors LLC has recently entered the market alongside EWG Elevate Inc., and Grey Fox Wealth Advisors LLC.
As Citigroup progresses further into FY2023 and beyond, its financial performance will be carefully monitored by both analysts and institutional investors for any potential shifts in the market’s perspective on the bank’s fortunes.