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

Big Banks: Post-Election Bloody Aftermath Losers


Shares of Citigroup (C - Get Report) dropped over 6% to close at $36.05. The shares have now returned 37% year-to-date, following a 44% decline last year.

Citi's shares trade for 0.7 times their reported Sept. 30 tangible book value of $52.70, and for eight times the consensus 2013 EPS estimate of $4.64.

Following former Citigroup CEO Vikram Pandit's recent ouster, investors are looking for new CEO Michael Corbat to speed-up Pandit's long-term "good bank/bad bank" strategy of placing noncore assets into Citi Holdings and winding them down, in order to boost regulatory capital ratios and enable a significant boost in the company's return of capital to investors, through share buybacks and an increase in the dividend on common shares, which is currently just a penny per quarter.

Following the next round of stress tests, O'Connor expects Citigroup to return a total of $2.774 billion in capital to investors during 2013, through $1.199 billion in dividends, and $1.575 billion in common share repurchases. The analyst expects Citi's shares to have a dividend yield of 1.1% for 2013.

C Chart C data by YCharts

Interested in more on Citigroup? See TheStreet Ratings' report card for this stock.

3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
C $51.62 0.00%
BAC $15.41 0.00%
JPM $59.95 0.00%
WFC $53.94 0.00%
AAPL $124.25 0.00%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs