• Login
Strong Article
  • Business
  • Finance
  • Investing
  • World
  • Technology
  • Politics
  • Health
  • Submit Article
No Result
View All Result
SUBSCRIBE
Strong Article
  • Business
  • Finance
  • Investing
  • World
  • Technology
  • Politics
  • Health
  • Submit Article
No Result
View All Result
Strong Article
No Result
View All Result
Home Business

Why Shares of Citigroup Are Falling Today – The Motley Fool

Muhammad Mubeen by Muhammad Mubeen
2 years ago
in Business, Small Business
0
Why Shares of Citigroup Are Falling Today – The Motley Fool
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter

Returns as of 03/07/2022
Returns as of 03/07/2022
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Motley Fool Issues Rare “All In” Buy Alert
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Shares of Citigroup ( C -1.84% ) traded roughly 4.5% down in the first half hour of trading today after the stock got downgraded by Jefferies. As of 11 a.m. ET, Citigroup had recouped some of those losses and only traded down about 2.2%.
Since its highly anticipated investor day last week, analysts have been downgrading Citigroup for its weaker-than-expected medium-term financial targets.
The bank said it expects to achieve an 11% to 12% return on tangible common equity (ROTCE) over the next three to five years, lower than analysts had been expecting. ROTCE is the return on shareholder capital minus intangible assets, goodwill, and preferred equity. 
Image source: Getty Images.
Jefferies analyst Ken Usdin changed his rating on Citigroup from a buy to a hold this morning. “The new ROTCE targets are loftier (11%-12%) and farther away (’24-’26) than our expectations,” Usdin said in his research note. Usdin is only forecasting Citigroup to generate a ROTCE of 8.3% in 2022 and then less than 8% in 2023, the bank analyst said, “making a leap to 11% seem very unlikely in ’24.”
Usdin said he is also worried about how the bank will be impacted by Russia’s invasion of Ukraine, particularly if the conflict impacts overall global demand and activity, because Citigroup is a very global bank. Also, Citigroup recently disclosed it has nearly $10 billion of exposure in Russia. Usdin also thinks the conflict could hurt Citigroup’s previously announced intention to sell its consumer banking divisions in Russia and Poland.
I’m a little confused by Usdin saying the 11% to 12% ROTCE target is lofty because I and most others seemed to be underwhelmed by the financial targets. But I did certainly find investor day disappointing and see Citigroup as a much longer-term play than I initially thought.
Still, I do think a lot of the pain has been priced in at this point. The bank trades at a very low valuation and pays a nearly 3.7% dividend yield at these levels. So if you can be patient, I still think there is value here.

You might also like

Miradone: Does it Really Work? Should You Give it a Try?

Blooket Play – Join, Play Blooket Games for Classroom

ShowtimeAnytime.com/activate – How to Activate Showtime Anytime?

7 Ways to Make Home Relocation Less Stressful
Trending
7 Ways to Make Home Relocation Less Stressful

Why do we invest this way? Learn More
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Market-beating stocks from our award-winning service.
Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 03/07/2022.
Discounted offers are only available to new members. Stock Advisor list price is $199 per year.
Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns as of January 1, 2021.
Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool’s premium services.

Making the world smarter, happier, and richer.

Market data powered by Xignite.

source

Share30Tweet19
Muhammad Mubeen

Muhammad Mubeen

Recommended For You

Miradone: Does it Really Work? Should You Give it a Try?

by Muhammad Mubeen
October 1, 2023
0
miradore

In the world of wellness and alternative medicine, people are constantly seeking natural remedies to improve their health and well-being. One such product that has gained considerable attention...

Read more

Blooket Play – Join, Play Blooket Games for Classroom

by Muhammad Mubeen
October 1, 2023
0
Blooket

Are you searching for an engaging and interactive platform to enhance the learning experience in your classroom? Look no further! We, at Blooket, are here to revolutionize the...

Read more

ShowtimeAnytime.com/activate – How to Activate Showtime Anytime?

by Muhammad Mubeen
October 1, 2023
0
showtimeanytime

Can it be true that you have been hoping to activate Showtime Anytime genuine fast and simple? Assuming this happens, we've your back. Presumably, Showtime is really a...

Read more

7 Ways to Make Home Relocation Less Stressful

by Muhammad Mubeen
July 19, 2023
0
7 Ways to Make Home Relocation Less Stressful

You may have the excitement of moving. You are going to be part of your dream home or job. You can stay nearer to your family and friends....

Read more

Most Experienced Writing Service

by Muhammad Mubeen
July 17, 2023
0
Writing

In today's fast-paced digital world, where content is king, the need for high-quality writing services has skyrocketed. Whether you're a business owner, a student, or an individual looking...

Read more
Next Post
How Can I Build On SEO Knowledge To Be Better In PPC? – Search Engine Journal

How Can I Build On SEO Knowledge To Be Better In PPC? - Search Engine Journal

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related News

Breaking news live updates: Air India partially restores pay cuts for employees from April 1 – Times of India

Breaking news live updates: Air India partially restores pay cuts for employees from April 1 – Times of India

April 15, 2022
Live Streaming, PSL 2022, Islamabad United Vs Karachi Kings: Watch Pakistan Super League, Match 21 Live – Outlook India

Live Streaming, PSL 2022, Islamabad United Vs Karachi Kings: Watch Pakistan Super League, Match 21 Live – Outlook India

March 15, 2022
Aaron Ramsdale, Bukayo Saka, Takehiro Tomiyasu: Latest Arsenal injury news after Aston Villa win – Football.London

Aaron Ramsdale, Bukayo Saka, Takehiro Tomiyasu: Latest Arsenal injury news after Aston Villa win – Football.London

March 20, 2022

Browse by Category

Ads Blog | Blog Roll

Slot Online
News Week
B2B Guru Class
Target Crypto
The Kontent
Hufforbes
Strong Article
ADVERTISEMENT
October 2023
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031  
« Jul    
ADVERTISEMENT
Strong Article

Strong Article is an ultimate website news portal covering most happening news across the World, business, technology, entertainment, and inventions. This platform is revealing things in an engaging way to improve your knowledge on what is going on across the globe.

Contact us: mubeenh782(@)gmail(dot)com
Telegram:Qualitybacklinks
Whatsapp:+923111339715


CATEGORIES

  • Brand
  • Business
  • Celebrated
  • Crypto
  • Education
  • Electricity
  • Entertainment
  • Features
  • Finance
  • Foods
  • Gambling
  • Health
  • Home
  • Investing
  • Life style
  • Markets
  • News
  • Opinion
  • Pet
  • Politics
  • Real Estate
  • Relationships
  • Small Business
  • Sports
  • Technology
  • Travel
  • World

RECENT POSTS

  • Miradone: Does it Really Work? Should You Give it a Try?
  • Blooket Play – Join, Play Blooket Games for Classroom
  • History.com/activate – Activate History Channel on Roku, Apple TV & Fire TV
  • ShowtimeAnytime.com/activate – How to Activate Showtime Anytime?
  • 7 Ways to Make Home Relocation Less Stressful

Copyright ©2016. All rights reserved. Strong Article News

No Result
View All Result
  • Business
  • Finance
  • Investing
  • World
  • Technology
  • Politics
  • Health
  • Submit Article

Copyright ©2016. All rights reserved. Strong Article News

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?