Royal London Asset Management Ltd. has recently announced an increase in its stake in Citigroup Inc., reflecting growing investor interest in the banking giant.
The firm reported an increase of 1.9% in shares, totaling 803,772 shares following the acquisition of 14,669 additional shares during the fourth quarter of the previous year. This upgrade brings Royal London Asset Management's investments in Citigroup to a substantial $56,578,000 as of the end of the fourth quarter.
Following their lead, other institutional investors have also made significant movements in Citigroup shares. The Teacher Retirement System of Texas raised its holdings by an astonishing 88.4%, acquiring an additional 338,602 shares and now owns a total of 721,835 shares valued at approximately $50.8 million. The fourth quarter was notable for newcomers, with Trivest Advisors Ltd purchasing about $12.3 million in Citigroup shares and Algebris UK Ltd acquiring a approximately $26.1 million stake. Kazazian Asset Management LLC, Generali Investments Management Co LLC, and Investment House LLC also joined in during this period, signaling strong institutional confidence in the stock.
A noteworthy trend emerging from these transactions is that institutional investors now own 71.72% of Citigroup's stock. This collective ownership has implications for stock stability and investor outlook.
These developments have sparked remarks from Wall Street analysts as well, with several brokerages weighing in. On January 7, 2025, Truist Financial initiated coverage of Citigroup with a 'buy' rating and a target price of $85. Subsequently, Barclays followed suit, upgrading their recommendation from 'equal weight' to 'overweight' while also increasing their target price from $70 to $95. Bank of America also placed a 'buy' rating on Citigroup with a target price increase from $90 to $95.
Conversely, The Goldman Sachs Group adjusted its price target down from $90 to $80, while maintaining a 'buy' rating. Meanwhile, Piper Sandler reaffirmed its 'overweight' rating and lifted its price target to $83.
Overall, Citigroup now boasts a consensus rating of 'Moderate Buy' with an average price target set at $83.53. This comes in light of the positive trading performance, with Citigroup's stock rising $2.01 to $73.99 on Monday, March 24, 2025. Trading volumes reached 5,685,394 shares in light of this upward movement compared to an average volume of around 16,015,563 shares. The stock has oscillated between a 52-week low of $53.51 and a high of $84.74.
Citigroup recently reported earnings for the fourth quarter, announcing earnings per share of $1.34, surpassing analyst predictions of $1.22 by $0.12. Revenue was also solid, totalling $19.58 billion against expectations of $19.51 billion, reflecting a year-over-year revenue increase of 12.3%.
As part of its strategy to return wealth to its shareholders, the company distributed a quarterly dividend of $0.56 per share on February 28, 2025, a yield of 3.03%, with the ex-dividend date set for February 3. Citigroup's dividend payout ratio currently stands at 37.65%. Additionally, the board of directors has authorized an ambitious $20 billion share repurchase program, allowing the firm to reacquire up to 13.5% of its stock. This kind of buyback typically represents confidence from management in the company’s current valuation.
The marketplace is not only seeing substantial investments from institutions but also insider transactions within Citigroup. Notably, CFO Mark Mason sold 58,465 shares on February 14 at an average price of $83.21, resulting in a total transaction valued at $4,864,872.65. This trade represents a 21.2% reduction in his stake. Additionally, COO Anand Selvakesari sold 30,000 shares at an average price of $81.10 on February 13, reducing his ownership by 11.57%.
Over the past quarter, a total of 103,590 shares worth $8,523,149 have been brought to market by insiders. This trend can be scrutinized in the context of broader market movements and institutional interest in Citigroup.
Citigroup Inc., a diversified financial service holding company, continues to provide products and services to a range of clients worldwide. The organization operates across multiple segments, including services, markets, banking, U.S. personal banking, and wealth management that emphasize their wide reach and operational breadth.
As Citigroup navigates the evolving financial landscape, investor sentiment appears promising, supported by institutional appetite, promising earnings, and a favorable market outlook.
