This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Citigroup Executives Reap Big Profit on Trades

Stocks in this article: C

Updated from 2:07 p.m. EDT

Citigroup (C) executives and directors who bought a combined 7.5 million shares of the beleaguered firm last week have already made paper profits of some $2.2 million, according to regulatory filings.

Director Roberto Hernandez purchased 6 million shares on March 2 at an average price of $1.25 a share. Latin America CEO Manuel Medina-Mora bought 1.5 million shares at an average price of $1.24 a share. Vice Chairman Lewis Kaden bought 100,000 shares and Controller John Gerspach bought 65,000 shares, according to Securities and Exchange Commission filings.

The insider stock purchases were the first since Jan. 14, Bloomberg said.

A spokeswoman declined to comment to Bloomberg on the trades.

The insider stock purchases came ahead of a big surge in the bank's stock surge earlier this week, after CEO Vikram Pandit said the company had been profitable in the first two months of the year and having the best quarter since the third quarter of 2007, according to a memo distributed late Monday. Shares rallied 38% on Tuesday and fueled the global markets to rally that day as well.

One Citi insider who lost money on a recent trade is former chairman Sir Win Bischoff, who reportedly sold 90,423 shares of common stock on March 2 an average price of $1.32 a share to make a paltry $120,000 on the sale.

Bischoff, who was removed from his position as chairman last month amid criticism of the company's precarious position, was replaced by Citi's lead director Richard Parsons, the former Time Warner (TWX) chairman. The news came less than a week after Citi announced, in conjunction with a huge fourth-quarter loss, that it would split the company into a good bank/bad bank organization.

Bischoff was elected chairman of the board in late 2007 after former CEO and chairman Charles Prince was forced to resign. Vikram Pandit succeeded Prince as CEO.

Shares of Citi, which traded below $1 last week, have recouped 55% of their value this week. The stock was most recently trading up 4.2% to $1.61.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs