Citigroup Inc. reported estimate-beating results on Monday as its investment banking business grew, and the company expanded its net-interest margin. Analysts believe that a reduction in tax rate to 21% is responsible for Citi’s improvement from a year ago.
However, the bank’s income from continuing operations declined slightly, partly due to divestiture last year. But the bank is striving to increase its digital capabilities to attract deposits domestically despite its light presence in U.S. branch network. Citi’s North American deposits edged up 1% but its international consumer deposits rose 3% during the quarter, indicating that the bank is growing deposits faster abroad than in the U.S.
Other key developments include an improved 11.9% return on average tangible common shareholder’s equity, $5.1 billion return in capital to shareholders, a 20% rise in investment banking revenue to $1.4 billion, total loans by assets rose 3% to $682.3 billion, deposits grew by 5% to $1.03 trillion, and net-interest margin expanded by 8 bps to 2.72% in the current quarter and total operating expenses fell 3% to $10.58 billion.
But there were setbacks too. A 24% drop in equities trading impacted Citi’s overall revenue which fell 2% to $18.58 billion and revenue from the bank’s largest business consumer banking was flat at $8.5 billion largely owing to weakness in the Asia region.
The bank is still optimistic that an absence of an interest rate hike, as signaled by the Federal Reserve, would not negatively impact the overall results of the year.
C saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on February 07, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 44 instances where the indicator turned negative. In of the 44 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The 10-day RSI Indicator for C moved out of overbought territory on February 05, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where C declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
C broke above its upper Bollinger Band on January 30, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Momentum Indicator moved above the 0 level on February 20, 2024. You may want to consider a long position or call options on C as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where C advanced for three days, in of 302 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. C’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.567) is normal, around the industry mean (0.935). C has a moderately high P/E Ratio (13.844) as compared to the industry average of (8.925). C's Projected Growth (PEG Ratio) (18.586) is very high in comparison to the industry average of (2.452). Dividend Yield (0.038) settles around the average of (0.054) among similar stocks. P/S Ratio (1.394) is also within normal values, averaging (2.454).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. C’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 61, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a financial conglomerate
A.I.dvisor indicates that over the last year, C has been closely correlated with BAC. These tickers have moved in lockstep 83% of the time. This A.I.-generated data suggests there is a high statistical probability that if C jumps, then BAC could also see price increases.