Key Stats for Citigroup Stock
- Price change for Citigroup stock in last 6 months: -4%
- $C Stock Price as of Oct. 13: $125
- 52-Week High: $148
- $C Stock Price Target: $152
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What Happened?
Citigroup (C) beat Q3 profit estimates on Tuesday.
- Earnings were $2.85 per share, above estimates of $2.65 and the prior-year $1.86.
- Net income was $5.25 billion, up from $3.8 billion a year ago.
- Revenue rose 8% to $23.8 billion.
- CEO Jane Fraser called it the bank’s best third quarter for revenue in a decade.
- Return on tangible common equity was 11.5%.
- Services and wealth were the standouts. Both grew revenue by 15%.
- Wealth brought in $38 billion in net new investment assets, up more than 100% from a year ago.
Investment banking revenue rose 9% to $1.35 billion, and equity underwriting jumped 77%. But investment banking fell 13% from the prior quarter as deal activity slowed.
Trading revenue rose 6% to $6.11 billion, equities trading rose 14%, and fixed income rose 4%.
Credit card profits fell 8%, and customers spent 13% more, but higher rewards costs, partner payments, and credit reserves weighed on results.
Citi set aside $1.9 billion for card losses, and the CFO called the reserve build a deliberate precaution.
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What the Market Is Telling Us About Citigroup Stock
Citi stock traded higher in early market trading, but the gains soon reversed despite an earnings beat.
A strategist said high rates and the threat of more Fed hikes are hurting trading and deal activity. He also noted Citi still grew in services and wealth.
Trading revenue fell 13% from Q2, and net income fell 10% from last quarter. Still, Citigroup stock has gained about 5% this year.
Management sounded upbeat. Fraser said the deal pipeline is still strong in M&A, debt refinancing, and equity issuance. Moreover, the bank expects a full-year return above 11%.
Citi also returned $4.1 billion to shareholders this quarter, and buybacks total $13.3 billion this year. Future buybacks depend on final capital rules.
For now, Citigroup stock looks tied to two things. One is whether trading and dealmaking hold up as rates rise. The other is whether the card business stays healthy.
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So what is Citigroup stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
