Updated with closing stock quotes
NEW YORK (
was one of the winners of the financial sector Friday, reversing some of the previous session's loss sparked by the pricing of its share offering and the Treasury Department's decision to delay the sale of its 34% stake.
late Wednesday priced 5.4 billion shares of common stock for $3.15 apiece, netting the company $17 billion. The pricing was below the $3.30 to $3.35-a-share range the market had expected Wednesday.
In addition, the Treasury Department decided not to sell any of its shares in connection with the bank's offering, as it wants the maximum price it can get for Citigroup's shares. Treasury Assistant Secretary Herbert Allison said Thursday the government will unwind its stake in Citigroup, which it values at roughly $26.5 billion, in the next six to twelve months.
After falling 7.2% Thursday, shares of Citigroup closed up 6.3% to $3.40.
Bank of America
was also reversing some of the previous session's losses, which came after the bank announced that consumer banking head Brian Moynihan will succeed outgoing CEO Ken Lewis.
fell 2.7% Thursday, but shares closed up 1.1% to $15.03.
Among analyst moves, Bank of America/Merrill Lynch analysts resumed coverage of
with a buy rating, sending shares 10.6% higher to $1.78.
Elsewhere, Keefe, Bruyette & Woods analysts upgraded
to outperform from market perform, arguing that valuations are cheap and investors are overlooking positive longer-term factors.
Despite the upgrades, KBW analysts cut their estimates for both into 2010 to better reflect revenue headwinds, which include "ultra-low" interest rates, reduced investor activity, and pressure on foreign exchange. Still, Northern Trust shares rose 2.5to $50.07, and State Street advanced 4.7% to $41.60.
KBW analysts did cut their price target for
Bank of New York Mellon
to $31 from $34 to reflect a lower 2010 earnings estimate. Despite the target reduction, shares were tacking on 0.7% to $26.77.
Among other bank stocks,
climbed 2.7% to $26.78,
added 1.4% to $163.19, and
rose 1.7% to $40.95.
shares rose after the bank elected Grayson Hall to serve as CEO after Dowd Ritter retires on March 31. Hall is currently Regions' president and chief operating officer, and he will retain the title of president and will continue to serve on the bank's board. Regions closed up 2.3% to $5.45.
Insurers were trading mixed, with
American International Group
slipped 0.1% and
was up 0.1%.
-- Written by Robert Holmes in Boston
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