Can Citigroup's stock be fixed?
Citigroup Can Be Fixed. Why Its Stock Is a Buy. Citigroup is broken—but the U.S. banking giant finally might have found the woman to fix it. When Jane Fraser becomes CEO of Citigroup on Monday, she will find herself simultaneously in the most and least enviable position in finance.
What does JPMorgan Chase and Citigroup mean for the biggest banks?
What does this mean for two of the biggest banks in the United States? JPMorgan Chase ( NYSE:JPM) and Citigroup ( NYSE:C) are what used to be referred to as the "money center banks," which were the big Manhattan banks that served the biggest blue-chip clients.
Who owns Citigroup's shares?
72.1% of Citigroup shares are owned by institutional investors. Comparatively, 69.4% of JPMorgan Chase & Co. shares are owned by institutional investors. 0.1% of Citigroup shares are owned by insiders. Comparatively, 0.8% of JPMorgan Chase & Co. shares are owned by insiders.
Is Citi stock still a buy at $52?
Citigroup stock (NYSE: C) lost more than 55% - dropping from $79 at the end of 2019 to around $35 in late March-then spiked 46% to around $52 now. Despite this, the stock has lost 34% of its value so far this year.
Why is Citi stock going down?
Citigroup shares are down more than 10% so far in 2022 In a research note on Friday, Katzke cited valuation as the reason for the downgrade, with Citi shares up 15% off their recent lows and within 10% of the target price.
Is Citi stock a good buy?
The stock has fallen 23% in 2022, to $46.54, and at 0.5 times book value, it's the cheapest of the big banks—and the one with the most to fix. At a time when bank stocks can be expected to move up and down in tandem based on the latest economic reports, fixing Citi's problems could spur outperformance.
Are Citibank and Chase the same?
The two big national banks Chase and Citibank have similar products and fees (and ways to waive them), but they differ in some ways. Consider what's important in your banking life, whether that means nearby ATMs or branch access, and read on to see how the banks compare.
Is Citigroup a buy Zack?
- Hold. Zacks' proprietary data indicates that Citigroup Inc. is currently rated as a Zacks Rank 3 and we are expecting an inline return from the C shares relative to the market in the next few months.
Is c undervalued?
Once again, C looks incredibly undervalued. Its tangible book value exceeds its market cap and trades at a 1.67x multiple. The market is discounting the tangible book value of C as its market cap trades at $62.33 billion less than its tangible book value.
Will C stock go up?
The 23 analysts offering 12-month price forecasts for Citigroup Inc have a median target of 58.00, with a high estimate of 81.00 and a low estimate of 39.00. The median estimate represents a +18.01% increase from the last price of 49.15.
Which is bigger Chase or Citibank?
Chase and Citi® are two of the largest and most popular banks in the country, both offering a wide range of banking options and convenient features....Chase vs. Citi® branches and ATMs.Citi®ChaseBranchesNearly 4,700Nearly 700ATMs16,00070,000+2 more rows•Jun 7, 2022
Which bank is bigger Chase or Citi?
Is Citi or Chase bigger? Chase has more than 4,700 branches in the US, while Citi has over 690 locations. You'll still be able to open online bank accounts if you don't live near a branch.
Why is Citibank better than other banks?
Citibank has many perks you can expect from a big, national bank, including a wide range of product offerings and a massive ATM network. But it has fewer branches than some of its peers, like Wells Fargo and Bank of America, and its most competitive savings account is not available in all regions.
What stocks will go up in 2022?
If you're looking to buy stock in 2022, here's what you need to know.Top 10 Stocks To Consider in 2022. ... Stocks With Growth Potential for 2022. ... Lithia Motors Inc. ... Travel + Leisure Co. ... Mueller Industries Inc. ... First BanCorp (FBP) ... Herc Holdings Inc. ... High-Performing Stocks.More items...•
Is JPM a buy Zacks?
(JPM) - Zacks....(Delayed Data from NYSE)Zacks RankDefinitionAnnualized Return1Strong Buy24.75%2Buy18.15%3Hold9.70%4Sell5.35%2 more rows
Is JPM a buy?
Bottom line: JPM stock is not a buy right now, based on IBD's chart analysis. Like other big banks, JPMorgan also has a poor record when it comes to beating the market for long stretches.
Does the MarketBeat Community prefer JPM or C?
JPMorgan Chase & Co. received 1708 more outperform votes than Citigroup when rated by MarketBeat users. Likewise, 74.26% of users gave JPMorgan Cha...
Do institutionals & insiders have more ownership in JPM or C?
70.4% of JPMorgan Chase & Co. shares are owned by institutional investors. Comparatively, 74.9% of Citigroup shares are owned by institutional inve...
Is JPM or C more profitable?
JPMorgan Chase & Co. has a net margin of 33.61% compared to Citigroup's net margin of 22.95%. JPMorgan Chase & Co.'s return on equity of 16.58% bea...
Is JPM or C a better dividend stock?
JPMorgan Chase & Co. pays an annual dividend of $4.00 per share and has a dividend yield of 3.3%. Citigroup pays an annual dividend of $2.04 per sh...
Do analysts rate JPM or C?
JPMorgan Chase & Co. currently has a consensus target price of $161.83, suggesting a potential upside of 35.37%. Citigroup has a consensus target p...
Does the media prefer JPM or C?
In the previous week, Citigroup had 18 more articles in the media than JPMorgan Chase & Co.. MarketBeat recorded 31 mentions for Citigroup and 13 m...
Which has more risk & volatility, JPM or C?
JPMorgan Chase & Co. has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Citigroup has a beta...
Which has higher valuation & earnings, JPM or C?
JPMorgan Chase & Co. has higher revenue and earnings than Citigroup. Citigroup is trading at a lower price-to-earnings ratio than JPMorgan Chase &...
Earnings season hasn't been kind to the big bank stocks so far
Matt is a Certified Financial Planner based in South Carolina who has been writing for The Motley Fool since 2012. Matt specializes in writing about bank stocks, REITs, and personal finance, but he loves any investment at the right price. Follow him on Twitter to keep up with his latest work! Follow @TMFMathGuy
What happened
The stock market isn't having an excellent day on Wednesday. As of 11 a.m. EDT today, the Dow Jones Industrial Average and the S&P 500 index were both down by about 2.7%.
So what
To be clear, bank stock earnings weren't terrible. But then again, the U.S. economy was pretty normal for about two-thirds of the first quarter. JPMorgan's revenue dropped by just 3% year over year, while Citigroup's actually grew. And all three of these banks grew their loan and deposit portfolios when compared with the first quarter of 2019.
Now what
The key takeaway from a bank investor's perspective is that nobody knows how this recession is going affect consumers' ability to pay their bills. And some of these reserve builds are more than investors had expected to see.
How much of Citigroup's earnings are dividends?
Citigroup pays out 41.8% of its earnings in the form of a dividend. U.S. Bancorp pays out 54.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
What is Citigroup's beta?
Citigroup has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, U.S. Bancorp has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Analyst Recommendations.
How many Bank of America shares are owned by institutional investors?
70.7% of Bank of America shares are owned by institutional investors. Comparatively, 75.0% of Citigroup shares are owned by institutional investors. 0.2% of Bank of America shares are owned by insiders. Comparatively, 0.1% of Citigroup shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Which is more volatile, Bank of America or Citigroup?
Bank of America has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Citigroup has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.
Is Truist Financial a large cap company?
Truist Financial ( NYSE:TFC) and Citigroup ( NYSE:C) are both large-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Is Citigroup more volatile than the S&P 500?
Citigroup has a beta of 1.9, suggesting that its stock price is 90% more volatile than the S&P 500. Comparatively, Bank of America has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500. Analyst Recommendations.
Is Citigroup a large cap company?
Citigroup ( NYSE:C) and JPMorgan Chase & Co. ( NYSE:JPM) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.
Who is the CEO of Citigroup?
When Jane Fraser becomes CEO of Citigroup on Monday, she will find herself simultaneously in the most and least enviable position in finance. Fraser, 53, will be the first woman to lead a U.S.-based big bank, shattering Wall Street’s glass ceiling. Jane Fraser Breaks Citi’s Glass Ceiling as Its New CEO. Jane Fraser’s appointment wasn’t ...
What is the area that Citigroup could dominate?
Fraser, though, can’t take her focus off improving what Citigroup already does well. One area that Citigroup could dominate is payments. Together, its card business and treasury and trade solutions group, which provides cash-management services for businesses, brought in $28 billion in 2020, or 37% of the bank’s revenue.
When did Citigroup get a $400 million fine?
Other regulatory actions followed, culminating in another consent order and a $400 million fine in October 2020. J.P. Morgan downgraded Citigroup to Neutral from Overweight on Thursday, citing the “overhang” from regulatory issues.
How much will Citigroup spend in 2020?
Citigroup already highlighted more than $1 billion of spending in 2020 tied to improving its infrastructure. In recent presentations, management said it expects expenses across the franchise to increase by 2% to 3% in 2021.
Who is Stone Fox Capital Advisors?
Stone Fox Capital Advisors, LLC is a registered investment advisor founded in 2010. Mark Holder graduated from the University of Tulsa with a double major in accounting & finance. Mark has his Series 65 and is also a CPA.
Did Citigroup beat Q2?
Citigroup actually beat Q2 analyst estimates in another sign that the large financial has better operations over a decade following the financial crisis. Unfortunately for shareholders, the stock still trades like the large financial is still in the middle of the financial crisis.
Summary
Citigroup is badly positioned relative to peers when it comes to enjoying the higher interest rate environment with higher interest-bearing deposits.
Interest is a two-way street
When interest rates go up, loan interest is the clear beneficiary as it's affected the most. However, interest on deposits also fluctuates, which is a key part of financial institutions' interest income versus interest expense.
Still underperforming
In 2020, when the pandemic hit, interest rates went back to zero and within the interest income and expense the banks were getting used to. We can see the differences between Citigroup and the other major financial institutions by the rate of change in their interest income and income expense from 2019 to their most recent reporting year.
So what does this all mean?
What this means is, Citigroup, which has been one of the steadiest financial services companies coming out of the global financial crisis of 2008, has positioned itself as the worst major player in the field heading out of a low rate environment and into a higher rate one.
Shareholder value - Citigroup takes the cake
What completely flips the switch here on Citigroup's position is the value they generate while you hold their shares. This is an important factor for investing in a company within a larger industry with many alternatives. Looking at Citigroup's yield and share repurchasing program shows some interesting comparisons:
Investment Conclusion
Even though Citigroup is the worst positioned major bank when it comes to their interest rate environment changes, they have the best shareholder value program which I believe will make up for a lot of it. Therefore, I remain bullish on the company's long-term prospects and will continue to hold their shares for the foreseeable future.
What is Citigroup Inc. stock symbol?
Citigroup Inc. is a American stock, trading under the symbol C-N on the New York Stock Exchange (C). It is usually referred to as NYSE:C or C-N
What does a high stock score mean for Citigroup?
Stockchase rating for Citigroup Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.
Why does my stock price drop?
Earnings reports or recent company news can cause the stock price to drop . Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
What is the symbol for Citigroup?
Citigroup Inc. is a American stock, trading under the symbol C-N on the New York Stock Exchange (C). It is usually referred to as NYSE:C or C-N.
When will Citigroup Inc. be released in 2021?
Citigroup Inc. (C-N) July 19, 2021. Another turnaround story, but not convincing like Wells Fargo is. Without a big reserve release, Citi 's report last week would have disappointed.
Is Citigroup Inc. worth watching?
18 stock analysts on Stockchase covered Citigroup Inc. In the last year. It is a trending stock that is worth watching.
How much did Citigroup stock increase in 2020?
Citigroup, a leading global financial services holding company that does business in over 160 countries, has seen its stock increase from $35 to $70 off the 2020 March bottom compared to the S&P 500 which increased almost 75%. The stock is leading the broader market and has gained 14% year-to-date. The bank’s Global Consumer Banking segment ...
What would happen if the economy was down?
The economic downturn could cause significant losses for businesses and individuals alike, impacting their loan repayment capability. This could result in sizable losses for Citigroup, as it has a substantial loan portfolio of consumer and commercial loans.
The Government Just Upended The Mortgage Space
- The first thing to consider when comparing these two operations is mortgage exposure. Under the CARES Act, the government has permitted homeowners to defer mortgage payments for six months, with the option to defer another six months without interest penalties, late fees, or credit reports. Borrowers do not have to prove any sort of hardship -- a s...
Mortgage Servicing Is The Next Shoe to Drop
- Given that there will be no financial penalty for taking advantage of the program, most people will operate under the "a dollar today is worth more than a dollar tomorrow" theory. This means that the banks are going to see much of their mortgage book suddenly become non-performing. While the missed payments for most loans are insured, meaning the banks will get them back someda…
valuation and Performance
- Below is a table of the relevant valuation numbers for the two banks. JPMorgan has always traded at a premium multiple compared to the other big four banks (including Bank of America and Wells Fargo). Citi has always traded at a lower multiple. JPMorgan trades at a premium for a reason -- it has better return on assets and return on equity ratios. JPMorgan's stock price has w…
This Is Not 2008
- It is important to remember that this situation is not like the financial crisis of 12 years ago when the banking sector came dangerously close to collapsing. Regulatory changes made in the aftermath of the crisis (stress testing, additional capital requirements, etc.) have made the sector much more able to withstand the type of economic shock we are experiencing right now. We ar…