New York (TheStreet) -- Citigroup's (C) stock has languished in recent weeks, exemplifying the continued troubles of the big financial firm and observers say they don't foresee a recovery in the shares any time soon.
Shares of Citi, which dipped below $1 in early March, ran up in the back half of summer as the financial institution executed a $58 billion preferred-to-common stock exchange beginning in late July. A summer market rally in the broad market was a contributing factor, and the bank sector on the whole did well.
The share swap was formally completed on Sept. 10, but Citi's stock topped out on Aug. 28 at $5.23. Shortly after that the shares pulled back and have mostly hovered in the upper $4 range. But since Oct. 14, the day before the company reported its third-quarter results registering a small profit, the stock is off nearly 20% and just this week closed below $4 for the first time since August 12.
Other big banks including JPMorgan Chase (JPM), Wells Fargo (WFC), even U.S. Bancorp (USB) have seen their shares rise in the double digits on a percentage basis since July. Bank of America's (BAC) stock has actually fallen since the end of July - but the litigation-heavy Southern bank, which is searching for a new CEO, is another story. Furious trading in Citi shares has also calmed since the summer. The stock's average daily three-month volume still stands at 775 million, but that's a level it's reached only six times since mid-September.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV