5 Biggest Companies That Were Dropped From the Dow Jones Industrial Average (DJIA)

4. Citigroup Inc (NYSE: C) 

Citgroup was removed from the Dow in 2009. In the fourth quarter, the bank posted GAAP EPS of $2.08, beating the Street’s forecast by $0.72. Revenue in the quarter declined over 10% and reached $16.5 billion, missing the consensus by $210 million.

As of the end of the third quarter, 91 hedge funds tracked by Insider Monkey held stakes in Citigroup. The total value of these stakes is $5.5 billion.

Here’s what Oakmark Select Fund, an investment advisory firm that provides asset and wealth management, said about Citigroup in their Q3 Investor Letter:

“Citigroup was our largest detractor for the period due to Covid-19-related concerns that have hurt the entire financial sector, as well as a handful of Citigroup-specific headlines that amplified near-term uncertainty. We believe that investors’ short-term focus can cause them to miss the bigger picture. The company has remained profitable throughout the Covid-19 crisis to date. It continues to operate with significant excess capital relative to regulatory minimums, even as it has added more than $10.5B to credit reserves year to date. We believe the company is proving its resilience during a real-life stress test. Yet, despite this positive early evidence, Citigroup currently trades at only 60% of tangible book value and slightly over 5x 2019 earnings per share. Given that we think the company’s normalized earnings power is greater than what it achieved in 2019, we find these valuation metrics especially attractive. As we move beyond the pandemic, we think investors’ focus will shift to the underlying quality of the business and they will value the resilience Citigroup demonstrated during this crisis.”