Is Citigroup Inc. (C) Still On The Way Up?

Page 1 of 2

Citigroup Inc. (NYSE:C) closed above $39 per share on December 17th, the first time it had done so since July 2011. The stock is up 51% in the last year, and over 30% year to date. There’s a case to be made that it’s still undervalued: the P/B ratio is 0.6, showing that the stock is trading at a large discount to the book value of Citi’s equity. Of course, Citigroup Inc. is not known as a particularly safe or reliable bank for investors, but even a moderate discount to book value would still leave it with a substantial upside. Wall Street analyst estimates imply a forward P/E multiple of 8 and a five-year PEG ratio of 0.8; again, we wouldn’t take that at face value, but it leaves significant room for the bank to underperform and still be a good value at current prices. In addition, three different insiders bought shares of Citi in November (see a history of insider buying at Citigroup); consensus insider buying, on average, is a bullish sign for a stock (read more about studies on consensus insider purchases).

The bank’s business has not been doing well recently, however. Revenues were down sharply in the third quarter of the year from their levels in Q3 2011, led by a decline in non-interest revenue; however, net interest revenue was also down slightly. With operating expenses showing little change, Citigroup reported about $470 million in net income as opposed to $3.8 billion a year earlier.

David Tepper

Citigroup Inc. had made our list of the most popular stocks among hedge funds for the third quarter of 2012 (see the full rankings), with 93 funds and other notable investors in our database of 13F filings reporting a position. It was also the second most popular financial stock, finishing behind only hot value play AIG. Billionaire David Tepper’s Appaloosa Management increased its holdings by 10% to a total of just over 10 million shares, making Citi one of its top five 13F holdings (find more of Tepper’s favorite stocks). Moore Global, managed by fellow billionaire Louis Bacon, initiated a position of 5.3 million shares during the third quarter (check out Bacon’s stock picks).

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!