Billionaire David Harding is Buying These 5 Finance Stocks

3. Citigroup Inc. (NYSE:C)

Winton Capital Management’s Stake Value: $5,303,000

Percentage of Winton Capital Management’s 13F Portfolio: 0.32%

Number of Hedge Fund Holders: 97

Citigroup Inc. (NYSE:C) is a New York-based financial services holding company that serves consumers, enterprises, and governments in North America, Latin America, Asia, Europe, the Middle East, and Africa with banking, lending, and investment services. David Harding’s Winton Capital Management owned a $5.3 million stake in Citigroup Inc. (NYSE:C) at the end of December 2021, representing 0.32% of the total 13F holdings. 

Citigroup Inc. (NYSE:C)’s revenue for the year in 2021 came in at $50.4 billion, below the prior year’s revenue of $58 billion. Net income increased approximately 99% in 2021 to $21.9 billion from $11 billion in 2020. 

On April 6, Barclays analyst Jason Goldberg lowered the price target on Citigroup Inc. (NYSE:C) to $67 from $73 and maintained an Equal Weight rating on the shares ahead of the Q1 2022 results. The analyst reduced his Q1 EPS estimate by $0.65 to $1.73, which is still above consensus estimates of $1.68, to account for lower investment banking fees and increased expenditure. 

Citigroup Inc. (NYSE:C) declared on April 1 a $0.51 per share quarterly dividend, in line with previous. The dividend is payable on May 27, to shareholders of record on May 2. Citigroup Inc. (NYSE:C)’s dividend yield on April 14 stood at 4.01%. 

Among the hedge funds tracked by Insider Monkey at the end of December 2021, 97 funds placed long bets on Citigroup Inc. (NYSE:C), up from 79 funds in the preceding quarter. Harris Associates is the biggest stakeholder of the company, with 28.1 million shares worth approximately $1.7 billion. 

Here is what Artisan Value Fund has to say about Citigroup Inc. (NYSE:C) in their Q4 2020 investor letter:

“We fully exited the position in Citigroup. Global financial services company Citigroup made a $900 million clerical error and received a public reprimand from federal regulators. This, after a decade focused on process control, information technology and risk systems, makes the error substantially more costly than just the $900 million mistake. Regulators believe the company’s risk management improvements have fallen short of expectations. To rectify the situation, a process and technology spending surge could negatively affect 2021-2022 profits by 10% to 20%. Trust and confidence are important in large financial institutions, and this incident combined with the CEO’s sudden retirement shook ours.”