Citigroup Inc. (C) and Charles Schwab Corp (SCHW) Among Companies with Noteworthy Insider Selling

The Fourth-Largest U.S. Bank Witnessed Executive Sell Shares This Week

Let’s wrap up our discussing by having a look at the insider selling registered at Citigroup Inc. (NYSE:C). Chief Risk Officer W. Bradford Hu discarded 9,528 units of common stock on Wednesday for $45.83 each, cutting his overall holding to 53,282 units.

Just recently, the Federal Reserve and the Federal Deposit Insurance Corporation released their review of the so-called living wills, which represent plans that explain how banks would go bankrupt without destabilizing the broader financial system, saying that Citigroup was the only bank among the top eight U.S. banks to have designed an acceptable plan. Moreover, the bank also reported quarterly-financial results that beat market expectations even though sustained uncertainty in financial markets and weak investor sentiment put significant pressure on Citigroup’s financial figures for the first quarter. The fourth-biggest U.S. bank in terms of assets has been busy injecting new dynamism and freshness into the company by exiting its consumer businesses in Brazil, Argentina and Colombia, as well as cutting jobs. It is also important to note that the bank’s allowance for bad loans declined to $12.7 billion, which account for 2.07% of total loans.

The shares of Citigroup are 9% in the red so far in 2016 despite having gained 18% in the past three months. Citigroup’s shares current trade at a forward P/E multiple of 8.4, which is below the forward P/E ratio of 10.4 for the Diversified Banks sector and the ratio of 18.5 for the companies included in the S&P 500 gauge. The smart money sentiment towards the fourth-largest U.S. bank declined during the fourth quarter, with the number of funds invested in the bank shrinking to 106 from 121 quarter-on-quarter. David Keidan’s Buckingham Capital Management owns 144,250 shares of Citigroup Inc. (NYSE:C) as of March 31.

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