Top 5 Value Stocks Hedge Funds are Buying in 2022

In this article, we discuss the top 5 value stocks hedge funds are buying in 2022. If you want to see more of the value stocks that elite investors are favoring, click Top 10 Value Stocks Hedge Funds are Buying in 2022.

5. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 88

P/E Ratio as of May 26: 6.38

Citigroup Inc. (NYSE:C) is one of the top value stocks on the radar of elite hedge funds. Citigroup Inc. (NYSE:C) is a diversified financial services holding company, operating through two segments – Global Consumer Banking and Institutional Clients Group. In Q1 2022, 88 hedge funds were bullish on Citigroup Inc. (NYSE:C), with collective stakes exceeding $8.1 billion, compared to 97 funds in the prior quarter, holding stakes in the company valued at $6.60 billion. 

On April 14, Citigroup Inc. (NYSE:C) posted earnings for Q1 2022, reporting an EPS of $2.02, beating estimates by $0.61. The $19.19 billion revenue surpassed Street forecasts by $1.07 billion. The company delivers a dividend yield of 3.82% as of May 27. 

Credit Suisse analyst Susan Roth Katzke on May 27 downgraded Citigroup Inc. (NYSE:C) to Neutral from Outperform with an unchanged price target of $58. The analyst cited valuation for the downgrade, with the shares up 15% from their recent lows and within 10% of the price target. 

According to Insider Monkey’s data, Warren Buffett’s Berkshire Hathaway held the biggest position in Citigroup Inc. (NYSE:C) as of Q1 2022, with more than 55 million shares worth about $3 billion. 

Here is what Artisan Value Fund has to say about Citigroup Inc. (NYSE:C) in their Q4 2020 investor letter:

“We fully exited the 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.”