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Citigroup Inc. (C), with a market cap of $115.6 billion, is a leading global financial services firm. The New York-based company delivers a broad spectrum of financial products, including consumer banking, corporate and investment banking, and wealth management services.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Citigroup fits this criterion perfectly, exceeding the mark. Citigroup stands out as the third-largest banking institution in the U.S. by assets and is distinguished by its extensive global presence and integrated financial services.
However, the bank has slipped 10.6% from its 52-week high of $67.81, achieved in July. Shares of Citigroup are down 1.9% over the past three months, underperforming the broader S&P 500 Index's ($SPX) 2.8% gains over the same time frame.
However, longer term, C is up 17.9% on a YTD basis, outpacing SPX's 15.4% gains. Also, shares of Citigroup have surged 46.6% over the past 52 weeks, compared to SPX's 22.4% returns over the same time frame.
Citigroup has been trading above its 50-day and 200-day moving average since November last year, but it fell below its 50-day moving average starting in August.
Citigroup has outperformed in 2024 primarily due to its successful multi-year transformation plan, which includes significant infrastructure investments and strategic divestitures that streamline operations and focus on core growth areas.
However, despite beating Q2 profit expectations, the stock fell 1.8% on Jul. 12 due to investor concerns about rising expenses and the bank’s failure to meet its shareholder return target. The stock decline was also driven by ongoing regulatory issues, including a $136 million fine for insufficient progress on data management fixes and uncertainty over the bank's plans to address these regulatory challenges.
Nevertheless, its rival, JPMorgan Chase & Co. (JPM), is outperforming – not just Citigroup but the broader equity benchmarks. Shares of JPM have soared 49.9% over the past 52 weeks and are up 27.9% on a YTD basis.
Despite the C stock’s outperformance relative to SPX over the past year, analysts are cautiously optimistic about Citigroup’s prospects. The stock has a consensus rating of “Moderate Buy” from the 22 analysts in coverage, and the mean price target of $70.59 is a premium of 16.4% to current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
