Seeking Alpha

Citi hit with two downgrades after capital plan rejection

  • Both Bernstein and KBW remove Outperform ratings on Citigroup (C) the morning after its capital return plan was rejected by the Fed for "qualitative" reasons. One wonders whether this disappointment wasn't already priced in as Citi has underperformed this year, and for some time been the only one of the major banks trading below book value. Shares are off 5% in premarket action.
  • Overall, the bank capital returns announced yesterday are below expectations, says Compass Point's Kevin Barker, but Huntington Bancshares (HBAN) - which boosted the dividend 20% and announced a buyback for about 3% of the float - was better than hoped.
  • XLF -0.1% premarket
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Comments (2)
  • DeepValueLover
    , contributor
    Comments (8137) | Send Message
     
    Citigroup:

     

    Assets: ~$1,880,000,000,000.00

     

    Shareholder's Equity: $204.34 billion

     

    Net Income: $13.67 billion

     

    Price to Earnings Growth Ratio: 0.145
    =========================
    Please, "analysts", keep those downgrades coming so I can load up on even cheaper shares under TBV!
    27 Mar, 08:25 AM Reply Like
  • june1234
    , contributor
    Comments (2492) | Send Message
     
    Management issue in my book. C should have been better prepared given all the time they had to get their ducks in a row. Makes them appear incompetent or like something else is up; either way stock is getting punished for it.
    27 Mar, 09:03 AM Reply Like
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