Shares of Citigroup (C) 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 data by YCharts
Interested in more on Citigroup? See TheStreet Ratings' report card for this stock.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- 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 + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV