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Citigroup, Inc. (C) IF banks go, this one has been leading. 49.5-50 in play if banks are the new rotation
By: Options Mike | June 11, 2023
• $C IF banks go, this one has been leading. 49.5-50 in play if banks are the new rotation.
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Citigroup Inc. $C Total Debt (mrq) $634.04B
Citi to Pursue Initial Public Offering of its Consumer, Small Business and Middle Market Banking Operations in Mexico as it Executes Strategy to Simplify Firm and Deliver Value to Shareholders (5/24/23)
https://www.citigroup.com/global/news/press-release/2023/citi-mexico-operations-update-24052023
Citigroup (C) $1.8 Million Put • Strike: 41 • Expiration: 1/19/24
By: Cheddar Flow | May 24, 2023
• $C $1.8M OTM Put
Strike: 41
Expiration: 1/19/24
*Above the Ask*
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Citigroup $C Opening sweepers in to the 06/16 $43 PUTS
By: FLOWrensics | May 24, 2023
• $C Opening sweepers in to the 06/16 $43 PUTS
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Watching this one. It's one on the list!
They can't buy them all out.
Citigroup, Inc. (C) Solid move off a good report, little extended here, but 50.5 back in play would complete the move back pre crisis
By: Options Mike | April 16, 2023
• $C Solid move off a good report, little extended here, but 50.5 back in play would complete the move back pre crisis.
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Options Bulls Swarm Citigroup (C) Stock Post-Earnings
By: Schaeffer's Investment Research | April 14, 2023
• The security is trading at its highest level since early March
• C looking to topple its 40-day moving average
The shares of Citigroup Inc (NYSE:C) are up 2.8% to trade at $48.63 at last check, after the bank giant reported better-than-expected first-quarter earnings of $1.86 per share and a revenue win of $21.45 billion. The company attributed the results to higher interest rates, with net interest income jumping 23% to $13.3 billion, though it set aside $241 million to cover potential loan losses.
Options bulls are not holding back, with 89,000 calls across the tape so far, which is five times the intraday average, compared to 32,000 puts. Most popular by far is the June 55 call.
The shares are today trading at their highest level since early March, and eyeing their first close above the 40-day moving average in several weeks as they pace for their fifth daily win in six sessions. C is up 7.8% in 2023, and added 12.7% over the past six months.
Analysts still lean bearish toward Citigroup stock, leaving plenty of room for upgrades to roll in moving forward. Of the 18 in coverage, 12 call the security a tepid "hold" or worse.
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Citi First Quarter 2023 Earnings Review (4/14/23)
https://www.citigroup.com/global/investors
Earnings Preview: Citigroup Inc. (NYSE: C)
By: 24/7 Wall St. | April 12, 2023
• Here are previews of three of the nation’s largest banks, all on deck to report quarterly results before U.S. markets open on Friday.
Citigroup
The fifth-largest U.S. bank (by market cap), Citigroup Inc. (NYSE: C) stock has added about 4.7% to its share price over the past 12 months. Since March 9, the day that Silicon Valley Bank began to show signs of its impending failure, Citi stock has retreated by 7.6%, about in the middle of the losses posted since that date by the biggest U.S. banks.
The big question for banks heading into this earnings season is whether they can remain profitable in the face of slower lending growth, increased saving and higher credit costs. All these issues will affect share buybacks as well. Citi recently said it expected net interest income for the 2023 fiscal year to come in at around $45 billion, some $5 billion short of the consensus estimate.
Of 24 brokerages covering the company, nine have a Buy or Strong Buy rating and 14 have Hold ratings. At a recent price of around $47.20 a share, the upside potential based on a median price target of $53.00 is 12.3%. At the high price target of $75.00, the upside potential is about 58.9%.
First-quarter revenue is forecast at $20.09 billion, which would be up 11.6% sequentially and by 4.7% year over year. Adjusted earnings per share (EPS) are forecast at $1.68, up 44.7% sequentially but down 20.2% year over year. For the full 2023 fiscal year, analysts anticipate EPS of $5.90, down 17.1%, on revenue of $77.89 billion, up 3.4%.
Citigroup stock trades at 8.0 times expected 2023 EPS, 7.1 times estimated 2024 earnings of $6.67 and 6.2 times estimated 2025 earnings of $7.56. The stock’s 52-week trading range is $40.01 to $54.56, and Citi pays an annual dividend of $2.04 (yield of 4.39%). Its total return to shareholders for the past year was negative 2.66%.
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Unusual Options Activity In Citigroup Signals An Investor's Bearish Outlook
By: Barchart | April 6, 2023
Unusual put option activity in Citigroup (C) stock signals a large investor's bearish view in the bank over the next several months. This is seen in Barchart's Unusual Stock Options Activity Report today, Thursday, April 6.
The Report shows a trade for over 3,000 puts was made at the $36.00 strike price for an expiration period of June 16, which is 71 days from now. This strike price is over 21.7% below today's price of $45.99 per share. Given how long the expiration period is from today and the low strike price, I assume that the initiating investor was likely a long-put buyer.
The reason is very simple. If you think a stock is going to fall, and you buy puts to make money on it, you want at least several months for this to play out. In this case, there is 2 months and 10 days for C stock to fall over 21.7% before the investor begins to make money.
In fact, since the premium paid was 41 cents, the long-put investor's breakeven point is $35.59 per share. That means Citigroup stock has to drop 22.6% from today.
Citigroup (C) Puts Expiring June 16 - Barchart Unusual Stock Options Report
Obviously, the investor expects to make good money on this trade, so they probably think the stock will drop significantly from here. For example, the investor paid 41 cents for 3,000 put contracts, which cost $123,000. Unless the stock falls below $36.00 on or before June 16, it's not likely that the investor will be able to keep any of that money.
However, keep in mind that the investor does not have to wait until June 16 to make a good return. For example, if Citigroup stock falls 10% from here within the next month, there is a good chance that the option premium could skyrocket. At that point, the investor will likely take profits.
In fact, this trade is likely simply a play on the bank's upcoming earnings report for Q1 due out next Friday, April 14, before the market opens. They probably expect numbers to emerge that will tank the stock. Let's look at that possibility.
Citigroup's Outlook
Citigroup stock trades at a significant discount to its tangible book value per share, $81.65 as of Dec. 31, according to the bank's financial supplement last quarter. At $45.99, this puts the ratio well below 1.0x, at 56.3% (i.e., $45.99/$81.65).
But the problem is many of the loans on the bank's balance sheet have likely deteriorated in quality. The bank has to recognize this and increase its reserves, which reduces the book value. That will raise the price-to-book value ratio, which could hurt C stock.
Moreover, investors may not feel that the bank's profitability will continue as strong going forward. Citigroup's net interest income spread could be compressed with higher interest rates. As it stands, analysts now project $5.91 earnings per share for 2023, which is 15.6% below 2022's $7.00 EPS. That puts C stock on a forward multiple of 7.8x.
But if the U.S. economy hits a recession, earnings could turn negative for the bank and its book value could turn down even further.
Nevertheless, at this point, Citigroup stock seems to be moderately priced, given the information that investors have now. In addition, C stock has a very ample 4.46% dividend yield, which will work to protect the stock from tanking very deeply.
This means that the long-put investor in C put options must be expecting much worse financial data and outlook for the bank. They have given themselves plenty of time for this to work out. For example, if the Federal Reserve keeps hiking rates over the next several months, that could add to concerns about Citigroup's valuation.
The bottom line is that at this point, with this trade the investor has a very bearish outlook on C stock, but they have plenty of time for the trade to work out.
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Citigroup, Inc. (C) Leading back up here. 200D next test then can run back to the 50D if they want it
By: Options Mike | April 2, 2023
• $C Leading back up here. 200D next test then can run back to the 50D if they want it.
8D would like to see as support on a pullback now.
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Citigroup $C **SIZE** #darkpool activity ~ 6.20 million shares at $44.78
By: Money Flow Mel | March 27, 2023
• $C **SIZE** #darkpool activity ~ 6.20 million shares at $44.78.
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$C #Citigroup getting closer and closer to that 52 week low.
Citigroup, Inc. (C) Has been a stronger bank, also held the 200D
By: Options Mike | March 12, 2023
• $C Has been a stronger bank, also held the 200D. IF we bounce you can use that a s support or Friday's low.
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Citigroup, Inc. (C) Leading. Nice move here, takes out the earnings high then 53.5 next target
By: Options Mike | March 4, 2023
• $C Leading. Nice move here, takes out the earnings high then 53.5 next target.
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Citigroup Cuts Hundreds of Jobs, Including in Investment Banking and Mortgage Units
By: Investing.com | March 2, 2023
(Bloomberg) -- Citigroup Inc (NYSE:C). is cutting hundreds of jobs across the company, with the Wall Street giant’s investment banking division among those affected.
The cuts amount to less than 1% of Citigroup’s 240,000-person workforce, according to people familiar with the matter, who asked not to be named discussing personnel information. Staffers across the firm’s operations and technology organization and US mortgage-underwriting arm are also among those affected.
The routine cuts are part of Citigroup’s normal business planning, the people said. There’s been no broad mandate for managers to cut staffers; instead, various divisions have been grappling with different reasons for the cuts.
A spokeswoman for Citigroup declined to comment.
The move comes just weeks after rival JPMorgan Chase & Co. (NYSE:JPM) cut hundreds of mortgage employees. Goldman Sachs Group Inc (NYSE:GS)., for its part, embarked on one of its biggest rounds of job cuts ever in January when it planned to eliminate thousands of positions across the company.
In the technology division, Citigroup has spent billions in recent years upgrading its underlying infrastructure. Chief Executive Officer Jane Fraser has long said those investments would ultimately allow the bank to reduce its reliance on manual processes.
“As our investment in transformation and control initiatives mature, we expect to realize efficiency as those programs transition from manually intensive processes to technology-enabled ones,” Fraser said in January.
In investment banking, on the other hand, the firm is grappling with an industrywide slowdown in deals. The dearth of activity sparked a 53% drop in revenue from the business last year and analysts are expecting additional declines in the first quarter.
Citigroup’s recent moves in its mortgage division — which is largely based in O’Fallon, Missouri — come after the bank already dismissed dozens of staffers last year. Mortgage demand has dropped in recent months amid rising prices and a rapid increase in mortgage rates.
“We’re actively hiring to execute against our strategy, but we’re also re-pacing where that makes sense in light of the environment that we’re in,” Chief Financial Officer Mark Mason said in January. “We’re constantly combing talent and making sure we’ve got the right people in the right roles, and, where necessary to restructure, we do that as well.”
Amid the cuts, Citigroup continues to hire and build teams dedicated to resolve a pair of consent orders received in 2020 from the Office of the Comptroller of the Currency and the Federal Reserve. Those additions helped swell firmwide headcount by 30,000 in the last two years alone.
“We continue to invest in our transformation to address our consent orders and to modernize our bank,” Fraser said in January. “We’re streamlining our processes and making them more automated, whilst improving the quality and accessibility of our data. This will make us a better bank.”
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Citigroup, Inc. (C) No change still a strong chart 49.50 continues to hold
By: Options Mike | February 26, 2023
• $C No change still a strong chart
49.50 continues to hold.
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Citigroup, Inc. (C) Remains one of the stronger banks. 52 cleared could break this one out
By: Options Mike | February 20, 2023
• $C Remains one of the stronger banks. 52 cleared could break this one out.
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Citigroup technicals indicate rally may extend even as Wall Street remains wary
By: Investing.com | February 1, 2023
(Reuters) - Citigroup Inc (NYSE:C)'s shares are approaching a potential bullish technical signal which indicates that this year's 14% rally could continue, even as some analysts remain critical of the bank's fundamentals.
The technical signal, called a "golden cross", forms if the stock's 50-day moving average goes above its 200-day moving average. On Jan. 23, Citi shares touched their highest since August.
"Citi has been a longtime underperformer but we are finally starting to see some signs of technical improvement," said Ryan Detrick, chief market strategist at Carson Group.
"By no means is it out of the woods, but this is a nice change given how poorly things have gone for a very long time," he added.
Since its January peak and including Wednesday's moves, Citi has traded sideways and was last down 1.42% at $51.5 on Wednesday.
Traders have dialed back their pessimism following a surge of activity in defensive puts on Citigroup options in the last two months of 2022.
The one-month moving average of puts-to-calls traded has dropped to 1.07-to-1, down from 2.6 puts traded for every call late last year, according to Trade Alert data, signaling less bearishness.
Analysts say Citi's price-surge bets rest on its "cheap" valuation attracting bargain-hunters. The bank is trading at a discount to its Wall Street peers.
"Trading at about half of book value and almost a 4% yield is attractive in this environment," said Thomas Hayes, chairman and managing member at New York-based equity manager Great Hill Capital LLC.
Still, the bank's fundamentals have not caught up with the optimism around share prices yet.
Citi's return on assets emerged as one of the lowest among rivals in fiscal 2022. It had also forecast expenses would surge to the highest in nearly a decade this year.
"On a fundamental basis, there aren't a ton of signs of Citi hitting its goals just yet," said Eric Compton, equity strategist at Morningstar.
"The bank is still very much in the build-up of expenses and early stages of reinvesting in their franchises."
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Citigroup **SIZE** #darkpool activity ! 19.44 million shares at $52.22
By: Money Flow Mel | January 31, 2023
• $C **SIZE** #darkpool activity ! 19.44 million shares at $52.22.
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Citigroup, Inc. (C) Stuck at 52, 54 next resistance
By: Options Mike | January 29, 2023
• $C Stuck at 52, 54 next resistance.
Riding the 8D nicely.
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Citigroup $1.3 Million Put • Strike: 50 • Expiration: 6/16/23
By: Cheddar Flow | January 25, 2023
• $C $1.3M OTM Put
Strike: 50
Expiration: 6/16/23
*Above the Ask*
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Citigroup, Inc. (C) Good earnings and leading here. RSI a bit hot , room to 52 then 54 if we push
By: Options Mike | January 22, 2023
• $C Good earnings and leading here. RSI a bit hot , room to 52 then 54 if we push.
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$C Citi with its first weekly 8/21 EMA bull cross since November 2020 after beating Q4 earnings expectations
By: TrendSpider | January 21, 2023
• $C Citi with its first weekly 8/21 EMA bull cross since November 2020 after beating Q4 earnings expectations.
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Here's why Citigroup's stock stands out among -2-
By: Morningstar | January 18, 2023
But even the $7.2 billion combined provision during the fourth quarter wasn't very high. During the first two quarters of 2020, the six banks' provisions totaled $44.7 billion -- they couldn't know at that time how significantly the combination of stimulus efforts by the federal government, federal reserve, along with moratoriums against foreclosures and evictions, would support credit quality.
Then in 2021, the six banks together recorded -$21 billion in loan loss provisions, for a lift in earnings.
Looking even further back to the Great Recession and its aftermath, provisions for the group (excluding Goldman Sachs and Morgan Stanley which didn't have loan exposure to require provisions to be made during those years) totaled $324 billion for three years through 2010.
It appears the big six aren't very worried about credit during this economic cycle.
To support that, here are standard loan-quality and reserve ratios for the group:
Bank Ticker Net charge-offs/ average loans Loan loss reserves/ total loans Nonaccrual loans/ total loans Loan loss reserves/ nonaccrual loans
JPMorgan Chase & Co. JPM 0.32% 1.96% 0.59% 294%
Bank of America Corp BAC 0.27% 1.36% 0.38% 338%
Wells Fargo & Co. WFC 0.22% 1.43% 0.59% 231%
Morgan Stanley MS N/A 0.63% N/A N/A
Goldman Sachs Group Inc. GS 0.40% 3.81% N/A N/A
Citigroup Inc. C 0.72% 2.90% 1.07% 241%
Source: FactSet
Citigroup, Inc. (C) Had better earnings than the other banks, 50 area is a big spot then 52 then 54
By: Options Mike | January 15, 2023
• $C had better earnings than the other banks, 50 area is a big spot then 52 then 54
Slow mover in general.. Needs to hold over the 200D now
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Citi $C just reported earnings posting numbers of:
By: StockMKTNewz | January 13, 2023
• Citi $C just reported earnings posting numbers of
EPS of $1.10 missing expectations of $1.20
Revenue of $18B beating expectations of $17.7B
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Earnings Preview: Citigroup Inc. (NYSE: C)
By: 24/7 Wall St. | January 11, 2023
• Here is a preview of what to expect when the big banks report results Friday morning.
Citigroup
Shares of Citigroup Inc. (NYSE: C) have dropped by 27% over the past 12 months. The stock posted its 52-week in early October, and since then, the shares have added nearly 16%.
Like the other big banks, Citi has been dealing with inflation, recession fears, and, at best, an economic slowdown. Investment banking, a particular emphasis of CEO Jane Fraser, was abysmal in 2022, and prospects for 2023 are not bright. Citi and its peers are likely to have salted away $5.7 billion in loan loss reserves during the quarter. That would mark the fourth consecutive quarter of increased loan loss provisions for the country’s biggest banks.
Of 25 brokerages covering the company, nine have a Buy or Strong Buy rating and 15 have Hold ratings. At a share price of around $48.20, the upside potential based on a median price target of $52.00 is 7.9%. At the high price target of $87.00, the upside potential is about 80.5%.
Fourth-quarter revenue is forecast at $17.39 billion, down 6.1% sequentially and 2.2% lower year over year. Adjusted EPS are forecast at $1.19, down 27.2% sequentially and by 18.5% year over year. For the full 2022 fiscal year, analysts are forecasting EPS of $7.02, down 30.8%, on revenue of $75.26 billion, up 4.7%.
Citigroup stock trades at 6.9 times expected 2022 EPS, 7.3 times estimated 2023 earnings of $6.64 and 6.8 times estimated 2024 earnings of $7.12. The stock’s 52-week range is $40.01 to $69.11, and Citi pays an annual dividend of $2.04 (yield of 4.36%). Its total return to shareholders for the past year was negative 24.1%.
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Citigroup, Inc. (C) If it jumps the 200D may give a trade ahead of earnings on watch
By: Options Mike | January 8, 2023
• $C If it jumps the 200D may give a trade ahead of earnings on watch.
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Citigroup (C) Price Target Raised to $61.00 at Barclays
By: MarketBeat | January 3, 2023
• Citigroup (NYSE:C) had its price target hoisted by equities research analysts at Barclays from $57.00 to $61.00 in a research note issued to investors on Tuesday, The Fly reports. Barclays's target price suggests a potential upside of 34.87% from the company's current price...
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Citigroup CEO sees trading revenue up 10% in Q4, but investment banking sliding
By: Investing.com | December 7, 2022
NEW YORK (Reuters) -Citigroup Inc expects revenue in its trading division to rise 10% in the current quarter from a year earlier, but investment banking fees will be down 60% in line with the industry, Chief Executive Jane Fraser said on Wednesday.
Trading desks have been a surprise bright spot for some of the largest U.S. banks this year as clients rejig their portfolios across asset classes in response to the chill in the markets.
"We're hoping 10% (increase) in markets based on what we have seen in October and November," Fraser told the Goldman Sachs (NYSE:GS) Financial Services conference.
But investment bankers on Wall Street who were drowning in deals in 2021 have seen activity slump as volatility in the capital markets, geopolitical tensions and risk-off sentiment together curb appetite for deals.
With stock market listings on ice and companies slamming the brakes on dealmaking, investment banking revenues have declined sharply across the industry. The harsh operating environment has also prompted job cuts at major lenders with executives warning of more pain ahead.
Separately, in line with previously announced plans to simplify the global banking giant, Fraser said that Citi was moving on with divestitures, exiting consumer banking businesses in non-core international markets.
"From the strategic perspective, I think we're all pleased with the progress and how we're beginning to see some of the early results come through in the data," Fraser added.
Citi is in advanced talks with suitors looking to buy its Mexican retail bank Banamex, according to media reports earlier this week. Citi in January had said it was looking for a buyer for the unit.
Citigroup (NYSE:C)'s acquisition of Banamex for $12.5 billion in 2001 was the largest ever in Mexico at the time.
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Citigroup shares slide on resolution plan shortcomings
By: Investing.com | November 23, 2022
Citigroup (NYSE:C) shares dipped Wednesday after agencies identified a shortcoming in its resolution plan.
The bank's shares are down more than 2%, trading around the $48.22 mark at the time of writing.
The Federal Reserve Board and Federal Deposit Insurance Corporation announced the results of their joint review of the resolution plans that the eight most prominent and most complex domestic banking organizations submitted in 2021.
The plans have to describe the strategy for "rapid and orderly resolution in bankruptcy" in the event of significant financial distress or the bank's failure.
However, while seven of the financial institutions' plans were in order, the agencies identified a shortcoming in Citigroup's plan.
"In Citigroup's resolution plan, the agencies found a shortcoming related to data quality and data management concerns previously identified by the Board in its October 2020 enforcement action," the Federal Reserve Board and Federal Deposit Insurance Corporation said.
Following the announcement, Citi said it was pleased to have "addressed the shortcoming identified in the 2019 Resolution Plan," and it is "completely committed" to handling the shortcoming identified in its July 2021 plan.
"We are making significant investments in our data integrity and data management, as the letter notes. We will leverage that work to remediate the shortcoming identified today, as we acknowledge there is much more work to do," they added.
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Citigroup targets more deals in Gulf region
By: Investing.com | November 22, 2022
DUBAI (Reuters) - Citigroup Inc (NYSE:C)'s investment banking team has increased by 50% over the past two years and more people are being added in the United Arab Emirates (UAE) and Saudi Arabia, joining rivals seeking to take advantage of a red-hot Gulf IPO market.
The Gulf region has become a bright spot for public share sales this year, boosted by high oil prices and government-led privatisation programmes.
Gulf issuers have raised about $16 billion in initial public offerings (IPOs) this year, accounting for about half of total IPO proceeds from Europe, the Middle East and Africa, Refinitiv data shows.
The growth in Gulf equity capital markets is in sharp contrast to the United States and Europe, where global banks have been trimming headcount in a dealmaking drought.
Citigroup moved its director for power, renewables and utilities, Omar El Duraie, to Dubai from London this year .
It is planning to add more people in Saudi Arabia and the UAE by the end of the year, said Miguel Azevedo, Citi’s head of investment banking for the Middle East and Africa, excluding South Africa.
"This year the region has been extremely active while the rest of the world has been on pause," he told Reuters.
Many IPOs have had books covered within an hour or a few hours from opening. Some have increased the size of offerings during the process to accommodate strong demand.
Others expanding in the Gulf include Rothschild & Co, which has opened an office in Saudi Arabia, while Goldman Sachs (NYSE:GS) is hiring bankers for its wealth management and investment banking businesses in the region.
(This story has been corrected to change first paragraph to say the investment banking team has increased by 50%, not doubled)
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Citigroup $C Millions worth of Call LEAPS
By: Cheddar Flow | November 15, 2022
• $C Millions worth of Call LEAPS
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Citigroup to buy Deutsche Bank license in Mexico for wholesale unit
By: Investing.com | November 8, 2022
NEW YORK (Reuters) -Citigroup Inc said on Tuesday it would purchase Deutsche Bank (ETR:DBKGn)'s Mexican license in order to continue its corporate and investment banking operation in the country, following the planned sale of its local retail unit.
Financial details were not disclosed.
"The acquisition of this license, which is subject to the receipt of all regulatory approvals, facilitates the pursuit of our consumer exit and ability to continue our institutional operations in Mexico," Citi said in a statement to Reuters.
Citi Chief Executive Jane Fraser announced the Mexican retail unit was up for sale at the beginning of the year, and a buyer is expected to be named by the end of 2022 or beginning of 2023.
Mexican corporate titans Carlos Slim and German Larrea are the top bidders for the unit, valued anywhere between $7 billion and $12 billion, sources told Reuters.
The purchase of Deutsche Bank's license allows Citi to sidestep the lengthy process of independently applying for its own, once the split is complete.
The retail operation will become known as Banco Nacional de Mexico, or Banamex, while the wholesale unit will be called Citi Mexico, Citi's country chief said in September.
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Citi Expects Auto to Roll Over Next, Data Center in H1 2023
By: Investing.com | November 4, 2022
In a note to clients on semiconductor stocks on Friday, Citi analysts told investors the firm expects auto to roll over next, then data center in 1H23.
Citi remains cautious on the sector as consensus estimates "declined again during earnings season as the PC/handset weakness extended to the industrial end market as previewed."
"We expect the automotive end market to roll over next followed by the data center end market during 1H23 and we expect the SOX index to hit new lows driven by further EPS cuts," wrote the analysts.
The analysts confirmed the firm's top pick remains ADI due to Citi's cautious stance, while their favorite stocks to own coming out of the downturn remain Micron Technology (NASDAQ:MU), Advanced Micro Devices (NASDAQ:AMD), ON Semiconductor (NASDAQ:ON), and GlobalFoundries (NASDAQ:GFS).
"Lead times are declining in the automotive space and we believe the auto end market will see a correction soon and would note both ON and NXP guided 4Q22 revenue from the automotive end market to be sub-seasonal," the analysts added. "Our checks in the data center food chain suggest orders for semis should remain strong through C22 then correct in 1H23."
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Citigroup, Inc. (C) Over 21D possible move to 41.11 and small gap there to watch
By: Options Mike | October 16, 2022
• $C Held green on a very red day, Still trying to wind down Russia business, bit of a drag on it. Over 21D possible move to 41.11 and small gap there to watch.
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Citigroup says it's in dialogue with regulators on consent order
By: Investing.com | October 14, 2022
NEW YORK (Reuters) - Citigroup (NYSE:C) Chief Executive Jane Fraser said on Friday the bank is having "constant and constructive" dialogue with regulators about a consent order issued two years ago requiring the bank to improve its risk management and internal controls.
"Transformation is our number one priority," Fraser told analysts after the company reported third quarter earnings. "It will be a multiyear journey and prioritizing safety and soundness is very important."
Reuters reported last month that Citigroup had submitted a comprehensive multiyear plan to the Federal Reserve and the Office of the Comptroller of the Currency outlining steps to fix weaknesses in its risk management and internal controls, citing two sources familiar with the matter.
The plan aims to address a 2020 directive from the Fed demanding that the bank correct several "longstanding deficiencies" in its internal controls. The Office of the Comptroller of the Currency (OCC) imposed a $400 million fine on Citi in 2020, citing similar concerns.
"We have constant and constructive engagement with our regulators," Fraser said Friday. "Personally, I find them to be very helpful and essential to our success."
The bank has been investing heavily in hiring people and adding resources to address the issues, she said, but declined to provide more details because the cleanup effort involves "confidential supervisory information."
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Citigroup expects $110 million loss on leveraged loans in 3Q - CFO
By: Investing.com | October 14, 2022
NEW YORK (Reuters) - Citigroup (NYSE:C) took a $110 million writedown on leveraged loans in the third quarter, its chief financial Mark Mason said on Friday.
"We took about $110 million in total between markdowns and losses on loans in the leverage space," Mason told reporters after earnings were released.
U.S. banks wrote down $1 billion on leveraged and bridge loans in the second-quarter as rising interest rates made it tougher for them to offload high-risk debt onto investors and other lenders.
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Citigroup $C net income down 25% YoY
By: The Transcript | October 14, 2022
• $C net income down 25% YoY.
CEO "Banking was the business most adversely impacted by the macro environment with reduced deal flows and a lower appetite for M&A"
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Earnings Preview: Citigroup Inc. (NYSE: C)
By: 24/7 Wall St. | October 12, 2022
• Here is a look at five companies set to report their quarterly results first thing Friday morning.
Citigroup
Shares of Citigroup Inc. (NYSE: C) have dropped by nearly 44% over the past 12 months. The stock posted its 52-week low on Tuesday and its 52-week high almost exactly a year ago.
Citi CEO Jane Fraser has begun a restructuring aimed at regaining lost ground in investment banking and has been beefing up its European advisory group. Combined with added loan-loss reserves, profits are likely to be underwhelming at the six largest U.S. banks. Earlier this week, Bloomberg estimated that Citi and the five other biggest U.S. banks will report salting away another $4.5 billion in loan-loss reserves during the third quarter. Demand for loans continues to grow, but the overall economy raises questions about loan losses. If Bloomberg’s forecast is realized, the six largest U.S. banks will have increased their loan-loss provisions in three consecutive quarters.
Of 24 brokerages covering the company, nine have a Buy or Strong Buy rating and 14 have a Hold rating. At a recent price of around $40.50 a share, the upside potential based on a median price target of $54.00 is 33.3%. At the high price target of $83.00, the upside potential is about 105%.
Third-quarter revenue is forecast at $18.25 billion, which would be down 4.7% sequentially but up 6.4% year over year. Adjusted EPS are forecast at $1.50, down nearly 35% sequentially and by 30.2% year over year. For the full 2022 fiscal year, analysts are forecasting EPS of $7.21, down 28.9%, on revenue of $75.2 billion, up 4.6%.
Citigroup stock trades at 5.6 times expected 2022 EPS, 5.7 times estimated 2023 earnings of $7.15 and 5.1 times estimated 2024 earnings of $7.98. The stock’s 52-week trading range is $40.92 to $73.22, and Citi pays an annual dividend of $2.04 (yield of 4.9%). The total return to shareholders for the past year was negative 41.6%.
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Bearish Traders Target Citigroup (C) But Should Retail Investors Follow Along?
By: Barchart | October 11, 2022
By arguably most measures, retail investors should avoid acquiring share of Citigroup (C) despite its significant discount in the market this year. While one of the largest financial institutions in the world, the incoming wave of macroeconomic headwinds don’t necessarily bode well for bellwether plays like C stock. Nevertheless, a small window of opportunity for contrarian traders exists.
First, the bad news. Since the start of 2022, circumstances quickly confirmed that soaring inflation – if left to its own devices – would unwind whatever good the Washington machinery implemented in saving the U.S. economy from the ravages of the COVID-19 pandemic. In large part to unprecedented monetary and fiscal stimulus programs, the money supply expanded rapidly. Now, the Federal Reserve had the unenviable task of dealing with prior excesses.
Throughout this year, the central bank pivoted to a hawkish monetary policy, consistently raising the benchmark interest rate by a hearty 0.75%. What’s more, statements delivered by Fed chair Jerome Powell indicated that he viewed inflation as a primary threat to future economic stability. Therefore, the Fed is willing to accept some pain in the near term to avoid catastrophe over the long run.
Unfortunately, the hawkish strategy is easier said than done. When the September jobs report came out, economists were taken by surprise as employment figures exceeded expectations. Generally speaking, a strong labor market is desirable as it implies a robust economy. At the same time, this circumstance also translates to more dollars chasing after fewer goods, creating the very inflation that the Fed is desperately trying to tame.
Therefore, folks on Wall Street anticipate that the central bank will become even more aggressive with its monetary tightening strategy. While this dynamic theoretically bolsters C stock through greater profitability in lending programs, the harsh reality is that if the Fed overcooks the tightening measures, it could lead to a recession.
Of course, that would be deflationary and unhelpful for C stock. Thus, it’s not terribly shocking that Citigroup became the subject of bearish unusual options activity.
Pessimists Attempt to Advantage C Stock
Following the closing bell of the Oct. 10 session, bearish traders moved in on the $37 put options for C stock. Puts rise in value as the underlying security declines in the open market. In this case, the targeted order features an expiration date of Oct. 21, 2022. Volume reached 5,422 contracts against an open interest reading of 118.
Moreover, the bid-ask spread as represented by the midpoint price (33 cents) came out to 6.06%. While not horrifyingly wide, it’s not exactly narrow either. Typically, wider spreads indicate lower liquidity levels. In addition, market makers often give themselves a healthy margin for transactions that are difficult to place.
For the record, C stock closed at $41.60 in the open market on Oct. 10. Therefore, shares will need to decline by a hair more than 11% to be at the money. With only 10 days to expiration since the placing of the trade, this is an aggressive wager.
Another factor regarding the unusual options activity for C stock that won’t shock anyone is that it aligns with the predominant trend in the derivatives market. According to data from Barchart.com, Citigroup features a put/call open interest ratio of 1.10. Under normal market conditions, the threshold separating bullish and bearish sentiment is around 0.70.
Since the numerator represents the number of puts being acquired, an open interest ratio greater than 0.70 signifies bearish sentiment (i.e. traders are buying more puts than calls).
If that wasn’t enough to convince you to abandon ship on C stock, analysts are pensive on the underlying company. True, the consensus rating is “moderate buy.” However, with 60% of Wall Street experts rating Citigroup a “hold,” it’s not the most convincing consensus assessment.
The Small Window of Bullishness
Although the incoming monetary wave suggests that deflation may eventually become the dominant trend, contrarian investors may still want to consider C stock as an upside opportunity. To be clear, the overall framework for Citigroup – and the financial industry as a whole – remains negative. However, deflationary forces can allow Citigroup’s wealth management business to shine.
To understand why, investors must appreciate the economic incentive under an inflationary cycle. With the dollar steadily losing purchasing power, investors face two fundamental choices: spend the money or invest it. If they sit on cash, the value of their holdings will gradually erode. That’s why risk-on assets tend to move northward when inflationary forces dominate – investors must do something with their money or lose out.
However, deflationary forces impose the opposite scenario. In this case, investors enjoy an incentive to sit on cash. Effectively, this (in)action yields a risk-free positive return. Therefore, any investment opportunity must be so compelling as to convince people to step away from those risk-free returns.
Now, regular folks may not have the acumen to advertise such compelling investments during deflationary cycles. But the army of experts that Citigroup deploys could. At least, they have the opportunity to distinguish themselves, guiding clients to higher ground during a particularly troubling period.
A Tough Call Either Way
Fundamentally, the bearishness toward C stock is understandable. Economic activity appears to be slowing recently while prices remain stubbornly elevated. Thus, the Fed might see this juncture as the last chance to mitigate inflation. Unfortunately, monetary tightening would likely lead to a recession, hurting broader economic activity.
Still, people need wealth management services irrespective of the underlying monetary cycle. Therefore, C stock has a chance of moving higher on the contrarian trade. But no matter what, the transaction will require nerves of steel.
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$C Flashing some weekly RSI divergence ahead of Friday's earnings report
By: TrendSpider | October 9, 2022
• $C Flashing some weekly RSI divergence ahead of Friday's earnings report.
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Citigroup Inc. (C) Receives Average Rating of "Hold" from Analysts
By: MarketBeat | October 6, 2022
• Citigroup Inc. (NYSE:C - Get Rating) has been assigned a consensus recommendation of "Hold" from the twenty-one research firms that are currently covering the company, Marketbeat reports. One analyst has rated the stock with a sell recommendation, ten have issued a hold recommendation and seven have given a buy recommendation to the company. The average 1 year price target among analysts that have covered the stock in the last year is $60.76...
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Citigroup Inc. (C) Weekly. #Citi weekly wedge and now testing huge pivot
By: ReciKnows | October 4, 2022
• $C Weekly. #Citi weekly wedge and now testing huge pivot.
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$C Citigroup Inc. sold a fat stack of its own shares yesterday
By: TrendSpider | September 13, 2022
• $C Citigroup Inc. sold a fat stack of its own shares yesterday.
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Citigroup wins appeal over mistaken Revlon wire transfer
By: Investing.com | September 8, 2022
NEW YORK (Reuters) - A U.S. appeals court on Thursday ruled in favor of Citigroup Inc (NYSE:C) in the bank's effort to recoup about $500 million of its own money that it accidentally wired Revlon Inc lenders.
In a 3-0 decision, the 2nd U.S. Circuit Court of Appeals in Manhattan said the lenders had not been entitled to repayment, and were on notice that the wiring was a mistake.
The case highlights risks in a banking industry that wires an estimated $5.4 trillion each day.
Neither Citigroup nor lawyers for the lenders immediately responded to requests for comment.
New York-based Citigroup, acting as Revlon's loan agent, in August 2020 mistakenly prepaid an $894 million loan for the cosmetics company controlled by billionaire Ronald Perelman that was not due until 2023. The bank had intended to make a routine $7.8 million interest payment, and some recipients returned their payouts.
But 10 asset managers, including Brigade Capital Management, HPS Investment Partners and Symphony Asset Management, whose clients included the Revlon lenders, kept the money they received. They said Citigroup paid exactly what was owed, and they had no reason to believe a sophisticated bank would err so badly.
The asset managers also said a prepayment seemed plausible because Perelman had bailed out Revlon before.
Citigroup said the overpayment left the asset managers with a huge windfall.
Revlon filed for Chapter 11 bankruptcy protection on June 15.
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Citigroup (C) Had a been a stronger bank, already at the 50D
By: Options Mike | September 5, 2022
• $C had a been a stronger bank, already at the 50D, it can dump back to 46 area easy if it doesn't hold here.
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