Citigroup Stock Sinks To An All-Time Low Of 97 Cents (2024)

FAQs

Why did Citigroup stock collapse? ›

Citigroup shares headed lower on Thursday after the bank disclosed a bevy of one-time charges and expenses to fourth-quarter earnings that exceeded its previous forecasts.

Part of the reason for this lackluster performance is that the bank has produced disappointing results. Citigroup's recently-reported fourth-quarter results followed this trend, as the bank posted a $1.8 billion loss, which arose from a smorgasbord of charges related to overseas risks.

Citi failed those exams, forcing it to do additional work, the source said. The regulatory notices come as the bank works through two 2020 consent orders, in which the Fed and the OCC directed the bank to fix longstanding and widespread deficiencies in its risk management, data governance and internal controls.

In July 2009, the firm was effectively nationalized, with billions of dollars in bailout money converted into a 34% ownership stake for the U.S. government. Citigroup was worth less than $16 billion, having lost more than $250 billion in value from its peak.

The stock fell sharply as many banks did, but Citi shares never bounced back. Missed financial targets and regulatory scrutiny for weak risk management under Fraser's predecessor, former CEO Michael Corbat, didn't help.

Citigroup (C)

Currently, Buffett owns 55 million shares of C, a stake that's valued at approximately $3 billion.

It lost $1.8 billion in the fourth quarter after taking several one-off charges that included losses with currency devaluation in Argentina and higher contributions to the FDIC, that ensures deposits. The lender's biggest challenges are improving profits in banking and wealth management, according to Nerby at Moody's.

The Wells Fargo & Co. analyst has already named Citi his top pick among big bank stocks for 2024, replacing JPMorgan Chase & Co. as his favorite. But he took it even further by saying he expects shares to more than double over the next three years as the bank undergoes a “metamorphosis.”

Companies Considered Too Big to Fail

Citigroup Inc. The Goldman Sachs Group Inc. JPMorgan Chase & Co. State Street Corp.

Citigroup's analyst rating consensus is a Moderate Buy. This is based on the ratings of 20 Wall Streets Analysts.

When did Citigroup collapse? ›

Collapse and US government intervention (2008) By July 2008 Citigroup was described as struggling, and by November they were insolvent, despite their receipt of $25 billion (~$34.7 billion in 2023) in taxpayer-funded federal Troubled Asset Relief Program funds.

Today, Citigroup's largest shareholders are Vanguard, BlackRock (NYSE:BRK), State Street Corporation (SST 4.29%), Berkshire Hathaway (BRK. A 0.61%)(BRK. B 0.6%), and Geode Capital Management.

Warren Buffett Citigroup Inc

The investor owns 2.91% of the outstanding Citigroup stock. Warren Buffett acquired their 55.2 Million shares between 2022 and 2023. So far they never sold any shares in the company. The investor's estimated purchase price is $3.41 Billion, resulting in a loss of 0.3%.

made a splash by buying $3 billion in shares of Citigroup (NYSE: C). At the time, Citigroup was experiencing seismic change under new CEO Jane Fraser. The stock's valuation was hovering well below its peers, still hobbled by a poor reputation and memories of its 2008 government bailout.

In early 2022, Warren Buffett and his investing team at Berkshire Hathaway (BRK. A -0.56%) (BRK. B 0.07%) made a splash by buying $3 billion in shares of Citigroup (C 0.84%).