Jim Cramer Was Right About These 5 Stocks

1. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 88  

Percentage Increase in Share Price Over Past Month: 10.08%

Citigroup Inc. (NYSE:C) is a diversified financial services firm. Cramer gave the stock a Buy recommendation during the Discussed Stock segment of his show on May 17, terming it a “must-have” stock in the present macroeconomic environment and also because legendary investor Warren Buffett had just invested in the firm as well. 

On May 3, Oppenheimer analyst Chris Kotowski kept an Outperform rating on Citigroup Inc. (NYSE:C) stock and lowered the price target to $93 from $100, noting that should a recession hit, banks “would handle it better than any recession in history”. 

At the end of the first quarter of 2022, 88 hedge funds in the database of Insider Monkey held stakes worth $8.1 billion in Citigroup Inc. (NYSE:C), compared to 97 the preceding quarter worth $6.6 billion.

In its Q1 2021 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Citigroup Inc. (NYSE:C) was one of them. Here is what the fund said:

“We fully exited position in Citigroup Inc. (NYSE:C). Global financial services company Citigroup Inc. (NYSE:C) 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.”

You can also take a peek at 10 Best Medical Stocks Under $10 and 15 Best Warren Buffett Stocks to Buy Now.

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