5 Stocks to Buy Now According to Jeffrey Gendell’s Tontine Asset Management

4. Citigroup Inc. (NYSE: C)

Gendell’s Stake Value: $25,597,000
Percentage of Jeffrey Gendell’s 13F Portfolio: 2.26%
Number of Hedge Fund Holders: 87

Citigroup Inc. (NYSE: C) is a financial service firm that offers a wide range of economic goods and services to individuals, businesses, governments, and organizations. It was founded in 1812, and it stands fourth on the list of 10 stocks to buy now according to Jeffrey Gendell’s Tontine Asset Management. The company shares have offered investors more than 39.50% in returns over the course of the past 12 months.

On July 15, Piper Sandler analyst Jeffery Harte lowered the price target on Citigroup Inc. (NYSE: C) to $91 from $95 and kept an “Overweight” rating on the shares after the solid second-quarter results. While shares fell after management decided to spend higher for the year. Harte tells investors in a research note that the guidance is relatively consistent with management’s comments at an industry conference last month.

Jeffrey Gendell’s Tontine Asset Management increased its hold in Citigroup Inc. (NYSE: C) by 38% in the second quarter of 2021, ending the period with 361,792 shares of the company, worth $25.60 million. Citigroup Inc. (NYSE: C) saw a decrease in hedge fund sentiment recently. The number of hedge fund positions declined to 87 in the second quarter compared to 90 positions in the previous quarter.

Artisan Partners Limited Partnership, in its fourth-quarter 2020 investor letter, mentioned Citigroup Inc. (NYSE: C). Here is what the fund said:

“We fully exited position in Citigroup. Global financial services company Citigroup made a $900 million clerical error and received a public reprimand from federal regulators. This, after a decade focused on process control, information technology and risk systems, makes the error substantially more costly than just the $900 million mistake. Regulators believe the company’s risk management improvements have fallen short of expectations. To rectify the situation, a process and technology spending surge could negatively affect 2021-2022 profits by 10% to 20%. Trust and confidence are important in large financial institutions, and this incident combined with the CEO’s sudden retirement shook ours.”