Is C stock Undervalued?
We think the bank's asset base is robust, and its consumer and corporate loan books contain significant potential. A residual income valuation model deems Citigroup stock undervalued while historical data communicates dividend sustainability.
“We strongly believe that Citigroup's shares are deeply undervalued because the bank and its management are much better and stronger than their reputations,” Wachenheim wrote in an email.
Citigroup (C)
Currently, Buffett owns 55 million shares of C, a stake that's valued at approximately $3 billion. Although C is a smaller holding in his stock portfolio, it's one of the few stocks that Buffett has had a change of heart about and decided to reinvest in.
Citi has been struggling to right itself since the financial crisis. Its shares are 89% below where they were in early 2007. In recent months, CEO Fraser announced a reorganization across the bank that eliminates layers of management and cuts 20,000 jobs.
The average price target is $66.11 with a high forecast of $88.00 and a low forecast of $54.00.
Companies Considered Too Big to Fail
Citigroup Inc. The Goldman Sachs Group Inc. JPMorgan Chase & Co. State Street Corp.
The stock fell sharply as many banks did, but Citi shares never bounced back. Missed financial targets and regulatory scrutiny for weak risk management under Fraser's predecessor, former CEO Michael Corbat, didn't help.
Citigroup has received a consensus rating of Moderate Buy. The company's average rating score is 2.59, and is based on 11 buy ratings, 5 hold ratings, and 1 sell rating.
Berkshire Hathaway bought shares of Citigroup after new CEO Jane Fraser started a massive overhaul. Citi's performance metrics are still lagging its large peers.
In early 2022, Warren Buffett and his investing team at Berkshire Hathaway (NYSE: BRK. A)(NYSE: BRK.B) made a splash by buying $3 billion in shares of Citigroup (NYSE: C). At the time, Citigroup was experiencing seismic change under new CEO Jane Fraser.
Should you buy Citigroup stock?
The Citigroup stock holds a sell signal from the short-term Moving Average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock.
Citigroup's odds of distress is under 6% at the present time. It has tiny probability of undergoing some form of financial distress in the near future. Probability of distress shows the probability of financial torment over the next two years of operations under current economic and market conditions.
Total debt on the balance sheet as of December 2023 : $324.07 B. According to Citigroup's latest financial reports the company's total debt is $324.07 B. A company's total debt is the sum of all current and non-current debts.
Citigroup is a global, publicly owned financial services company. Citigroup's largest shareholders include Vanguard, BlackRock, State Street Corporation, and Berkshire Hathaway. Citigroup's predecessor, First National City Corporation, went public in 1968.
According to our Citigroup stock prediction for 2030, C stock will be priced at $ 69.34 in 2030. This forecast is based on the stock's average growth over the past 10 years.
Citibank, N.A. (N. A. stands for "National Association"; stylized as citibank) is the primary U.S. banking subsidiary of financial services multinational Citigroup.
Citibank is an established bank which is fully regulated. Your deposits are insured by the FDIC to the full extent of the law.
Citi has a global network of financial services that stretches across nearly 160 countries. Citi has more than 200 years of experience growing businesses and supporting communities.
The Treasury provided $20 billion in Troubled Asset Relief Program (TARP) funds in addition to $25 billion given in October. The Treasury Department, the Federal Reserve and the FDIC agreed to cover 90% of the losses on Citigroup's $335 billion portfolio after Citigroup absorbed the first $29 billion in losses.
Analysts at Wells Fargo believe Citigroup's stock could double during the next three years due to these strategic moves. Citigroup trades at a steep discount and touts a dividend yield of almost 4%, making it appealing to value and dividend investors.
Is Citi a good dividend stock?
Over the past three years, Citigroup Inc's annual dividend growth rate was 2.00%. Extended to a five-year horizon, this rate increased to 14.30% per year. And over the past decade, Citigroup Inc's annual dividends per share growth rate stands at an impressive 62.60%.
JPMorgan Chase & Co. (JPM) is now worth more than competitors Bank of America (BAC) and Citibank (C) combined after 2023 consolidations and shakeups in the regional banking sector, according to a Bloomberg report.
On average, Wall Street analysts predict that Citigroup's share price could reach $68.36 by Apr 8, 2025. The average Citigroup stock price prediction forecasts a potential upside of 14.55% from the current C share price of $59.68. What is C's forecast return on equity (ROE) for 2024-2026?
| Company name & symbol | Percent change in share count over quarter | Value of investment at end of quarter |
|---|---|---|
| Sirius XM (SIRI) | 316% | $220,129,000 |
| Chevron Corp. (CVX) | 14% | $18,808,080,000 |
| Occidental Petroleum (OXY) | 9% | $14,552,270,000 |
Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway has recently made a notable addition to its investment portfolio by acquiring additional shares in Liberty SiriusXM Group (NASDAQ:LSXMA). On April 12, 2024, the firm increased its stake in the company, signaling a strategic move by the seasoned investor.
References
- https://www.gurufocus.com/term/payout/C/Dividend-Payout-Ratio/C
- https://www.fool.com/investing/2024/01/05/warren-buffett-berkshire-hathaway-own-citigroup/
- https://www.marketwatch.com/guides/banking/largest-banks-in-the-us/
- https://www.investopedia.com/ask/answers/052615/whats-difference-between-googles-goog-and-googl-stock-tickers.asp
- https://www.c.capital/
- https://www.slickcharts.com/goog-vs-googl
- https://www.investopedia.com/articles/investing/052216/4-benefits-holding-stocks-long-term.asp
- https://help.reverb.com/hc/en-us/articles/115012634867-What-does-B-Stock-mean
- https://www.sec.gov/Archives/edgar/data/1652044/000165204420000008/googexhibit414.htm
- https://ycharts.com/indicators/thrift_savings_plan_c_fund_monthly_returns
- https://www.bogleheads.org/forum/viewtopic.php?t=406530
- https://seekingalpha.com/symbol/GOOG/dividends/hypothetical
- https://www.olsteinfunds.com/assets/images/documents/ClassC_Conversion.pdf
- https://smartasset.com/financial-advisor/class-a-shares
- https://eqvista.com/classes-of-shares/
- https://stockinvest.us/stock/C
- https://www.nerdwallet.com/article/investing/most-expensive-stocks
- https://www.capitalgroup.com/individual/service-and-support/other-resources/share-classes-pricing-options.html
- https://www.citigroup.com/global/about-us
- https://wallethub.com/answers/cc/who-owns-citibank-1000011-2140827716/
- https://brokerchooser.com/education/stocks/how-to-buy-google-shares/difference-between-goog-and-googl
- https://www.goldmansachs.com/investor-relations/creditor-information/preferred-stock.html
- https://www.tigerbrokers.nz/help/detail/98998734
- https://wise.com/us/blog/citibank-reviews
- https://www.motilaloswal.com/blog-details/how-long-does-it-take-to-make-money-in-the-stock-market/20886
- https://equiniti.com/us/visa-class-c-share-sales/
- https://www.marketbeat.com/stocks/NYSE/C/
- https://www.tipranks.com/stocks/bac/ownership
- https://www.northcoast.coop/about_us/membership/investment_faq_s/
- https://www.investopedia.com/terms/t/too-big-to-fail.asp
- https://finance.yahoo.com/news/warren-buffett-berkshire-hathaway-own-140200917.html
- https://quoteddata.com/glossary/c-share/
- https://www.tsp.gov/funds-individual/c-fund/
- https://www.tipranks.com/stocks/ms/ownership
- https://www.forbes.com/advisor/banking/largest-banks-in-the-us/
- https://finance.yahoo.com/news/warren-buffett-bolsters-stake-liberty-060524407.html
- https://www.sofi.com/learn/content/classes-of-stock-shares/
- https://www.barrons.com/articles/citigroup-stock-profit-income-layoffs-3b3eb9e0
- https://www.quora.com/Are-JP-Morgan-Morgan-Stanley-and-Chase-Bank-all-related
- https://www.wallstreetzen.com/stocks/us/nyse/c/ownership
- https://www.lpl.com/content/dam/lpl-www/documents/disclosures/Mutual%20Fund%20Share%20Class%20Disclosure%208.18.pdf
- https://www.investopedia.com/terms/c/cshare.asp
- https://tax.thomsonreuters.com/blog/how-are-c-corporations-taxed-tips-on-how-to-avoid-double-taxation-and-reduce-taxes/
- https://www.barrons.com/articles/citibank-stock-terex-whirlpool-49f2b8f5
- https://brainly.com/question/35806949
- https://www.asx.com.au/documents/resources/shares_course_03.pdf?shar
- https://www.thehindubusinessline.com/markets/todays-pick/
- https://wallethub.com/answers/cc/who-owns-capital-one-1000011-2140827721/
- https://www.tipranks.com/stocks/c/forecast
- https://coincodex.com/stock/C/price-prediction/
- https://www.tipranks.com/stocks/jpm/ownership
- https://www.nerdwallet.com/article/investing/warren-buffett-stocks-berkshire-hathaway
- https://www.linkedin.com/pulse/modern-way-colonization-blackrock-prajjwal-nagaich
- https://www.wallstreetzen.com/stocks/us/nyse/c/stock-forecast
- https://www.investopedia.com/terms/c/class.asp
- https://www.investopedia.com/ask/answers/021615/what-difference-between-berkshire-hathaways-class-and-class-b-shares.asp
- https://www.bajajfinserv.in/types-of-shares
- https://www.wsj.com/finance/banking/citigroup-stock-wealth-management-business-25df760f
- https://www.investopedia.com/ask/answers/061515/how-are-mutual-funds-c-shares-different-and-b-shares.asp
- https://finance.yahoo.com/news/citigroup-incs-dividend-analysis-100425669.html
- https://partsconnexion.com/collections/what-does-a-b-c-stock-mean
- https://companiesmarketcap.com/citigroup/total-debt/
- https://finance.yahoo.com/video/jpmorgan-now-valued-more-bofa-173014102.html
- https://wallethub.com/answers/ca/are-citi-and-citibank-the-same-2140814182/
- https://en.wikipedia.org/wiki/Bank_of_America_Private_Bank
- https://stockanalysis.com/article/goog-vs-googl-stock/
- https://www.rolls-royce.com/investors/shareholder-information/faqs.aspx
- https://seekingalpha.com/article/4680850-citigroup-riding-the-wave-and-undervalued
- https://www.capitalgroup.com/advisor/investments/share-class-information/share-class-pricing.html
- https://www.investopedia.com/ask/answers/062215/what-difference-between-class-shares-and-other-common-shares-companys-stock.asp
- https://community.hmrc.gov.uk/customerforums/cgt/ed7bd8b0-2b10-ee11-a81c-000d3a8751e3?page=1
- https://www.koyfin.com/company/c/dividends/
- https://www.finra.org/investors/investing/investment-products/mutual-funds
- https://en.wikipedia.org/wiki/Citigroup
- https://en.wikipedia.org/wiki/Class_B_share
- https://fastercapital.com/content/Class-C-Shares-Demystified--Understanding-Shareholder-Costs.html
- https://en.wikipedia.org/wiki/Morgan_Stanley_Wealth_Management
- https://www.drwealth.com/alphabet-class-a-googl-vs-class-c-goog/
- https://www.morningstar.com/stocks/10-best-companies-invest-now
- https://www.guggenheiminvestments.com/services/frequently-asked-questions/what-is-the-difference-in-share-classes
- https://www.investopedia.com/articles/insights/052616/top-4-bank-america-shareholders-bac.asp
- https://www.fool.com/investing/2024/01/07/1-analyst-thinks-this-cheap-bank-stock-can-double/
- https://www.livemint.com/market/stock-market-news/day-trading-stocks-to-buy-ihc-to-itc-anand-rathi-expert-recommends-three-shares-to-buy-today-april-12-11712891005376.html
- https://en.wikipedia.org/wiki/Citibank
- https://www.finra.org/rules-guidance/key-topics/breakpoints/disclosure-statement
- https://carbonlg.com/how-many-shares-should-you-authorize-when-incorporating-your-startup-an-insightful-guide/
- https://www.fool.com/investing/how-to-invest/stocks/who-owns-citigroup/
- https://www.tiktok.com/@humphreytalks/video/7312488898406632750
- https://www.macroaxis.com/invest/ratio/C/Probability-Of-Bankruptcy
- https://www.linkedin.com/pulse/goog-vs-googl-which-one-do-you-invest-rafafinanceai-btbyc
- https://www.mcbride.co.uk/media/42ulm1eo/mcbride-b-share-booklet-april-2015-updated-link-details.pdf
- https://www.investopedia.com/ask/answers/05/optimalportfoliosize.asp
- https://www.sec.gov/Archives/edgar/data/67590/000168386320015062/f7606d1.htm
- https://www.thorindustries.com/stories/faq-class-c
- https://finance.yahoo.com/news/warren-buffett-3-top-bank-140007141.html
- https://www.citi.com.cn/html/en/about_us/Our_history.html
- https://www.thebalancemoney.com/is-it-best-to-buy-a-b-or-c-shares-4039035
- https://wallethub.com/answers/cc/are-citibank-and-capital-one-the-same-2140838878/
- https://fintel.io/so/us/ms
