Here’s Why Citigroup, Disney, & More Are Deep in the Red Today

Despite Star Wars likely being the most lucrative movie franchise in history, analysts at Barclays downgraded Walt Disney Co (NYSE:DIS) today to ‘Underweight’ from ‘Equal Weight’ and trimmed their price target on the stock to $89 from $98 per share. The Barclays analysts downgraded the media giant because they think that Disney crown jewel ESPN is declining as more millennials cut the cord and as the company’s studio business struggles to unlock more growth outside of acquisitions. Because of the lack of major positive catalysts, the analysts think that Disney should trade in-line with its peers in terms of valuation. Walt Disney Co (NYSE:DIS) shares are 3.5% lower this morning as a result.

Some hedge funds evidently share the concerns of the Barclays analysts, as the number of elite funds that were long Walt Disney Co (NYSE:DIS) fell to 48 at the end of September, from 60 at the end of June.

Citigroup Inc (NYSE:C) shares continued their downward trek today after the mega-bank reported fourth-quarter earnings. Although Citigroup’s EPS beat estimates by $0.01 and its revenue exceeded expectations by $770 million (with quarterly EPS of $1.06 on revenue of $18.64 billion), the market was evidently expecting something more. It apparently isn’t enough that the bank’s tangible book value rose to $60.61 per share from $56.71 and that ‘bad bank’ Citi Holdings was profitable, with earnings of $704 million versus the $87 million it pulled in for the same period a year earlier. To be fair, Citigroup Inc (NYSE:C) does have more exposure to emerging markets than other banks, and the bank’s results could head south if China’s economy continues to slow and drags other emerging markets down with it.

Hedge fund sentiment towards Citigroup dipped slightly during the third quarter, with 121 elite funds holding shares as of September 30, down from 126 on June 30.

Disclosure: None