Trading Citigroup After Q2 Fiscal 2024 Performance

Citigroup is an American multinational investment bank and financial services company. It's one of the world's largest banking institutions with operations in over 160 countries. Established in 1998, the bank has undergone a significant restructuring due to the impact of the 2008 financial crisis.  

Learn more about Citigroup's fiscal second-quarter 2024 performance and what analysts are forecasting for the stock below. 

• The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.

Citigroup Fiscal Q2 2024 Performance

Here are some of the key highlights from the fiscal second-quarter 2024 earnings report from Citigroup: 

• Earnings per share of $1.52 vs $1.39 expected 
• Revenue of $20.14 billion vs $20.07 billion expected 
• Net income up 10% from prior year 
• Equities trading revenue up 37% to $1.5 billion 
• Investment banking revenue up 60% to $853 million 

Citigroup beat analyst expectations on most financial metrics. A rise in derivatives trading and hedge fund balances lifted its equity division, while a lift in IPO and merger activity lifted the investment bank division.  

The bank did see a 3% drop in fixed income revenue to $3.6 billion, due to lower activity in interest rate drive trades in the currency market. Citigroup CEO Jane Fraser has been working to simplify the bank's management structure and reduce costs. The bank has promised to cut 20,000 jobs by 2026. 

So far, it has reduced its staff numbers by 11,000. While the plan has helped lift the bank's revenue, there are concerns regarding higher losses in its credit card business. Even though it is the third largest US bank by assets, it experienced a 74% drop in credit card and consumer banking profits, compared to last year.  

If this is a sign of weakening consumer growth then that could weigh on the bank's share price. The bank's results also included a $136 million fine for failing regulatory compliance to improve its data management and risk controls. This too could weigh on its share price if it can appease regulators.  

This has led to a mixed analyst rating, as shown below.

Citigroup Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for an Citigroup stock forecast in the past 3 months, there are currently 10 buy, 7 hold and 0 sell ratings on the stock. The highest price level for a Citigroup stock forecast is $85.00 with the lowest price target at $60.00. 

The average price target for a Citigroup stock forecast is $70.15.

An Example Trading Idea for the Citigroup Stock Price

An example trading idea for the Citigroup share price could be as follows:  

• Buy the stock on a break above $67.00 to allow for volatility. 
• Target just below the highest analyst price target of $85.00. 
• Keep your risk small at a maximum of 5% of your total account.   
• Time Line = 1 – 6 months  
• If you buy 10 Citigroup shares:  
• If target is reached = $180.00 potential profit [($85.00 - $67.00) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially as the company's revenues are highly correlated to the health of the consumer.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Citigroup stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

However, there is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall.

How to Buy Citigroup Stock in 4 Steps  

With Admirals, you can buy shares with a commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

1. Open an account with Admirals to access the dashboard.   
2. Click on Trade on one of your live or demo accounts to open the web platform.   
3. Search for your stock in the search window at the top right to view the live price chart. 
4. Click Create New Order from the bottom of the screen to open the trading ticket. 

Click on the banner below to trade Citigroup stock today ▼▼▼ 

Do You See the Citigroup Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.

If you believe there is a higher chance Citigroup share price will move lower, then you can also trade short from a CFD trading account which Admirals also provide.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to potentially profit from rising and falling stock prices.

INFORMATION ABOUT ANALYTICAL MATERIALS: 

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following: 

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• The Analysis is prepared by an independent analyst Jitanchandra Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.
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