Citigroup Inc. (NYSE: stock symbol C) Commonly known as Citi, is an American multinational financial services corporation headquartered in New York City, New York, United States. Citigroup was formed from one of the world’s largest mergers by combining the banking giant Citicorp and financial conglomerate Travelers Group on April 7, 1998. The year 2012 marks Citi’s 200th anniversary.
Citigroup has the world’s largest financial services network, spanning 140 countries with approximately 16,000 offices worldwide. The company currently employs approximately 260,000 staff around the world, which is down from 267,150 in 2010 according to Forbes.
It holds over 200 million customer accounts in more than 140 countries. It’s a primary dealer in US Treasury securities. According to Forbes, at its height Citigroup used to be the largest company and bank in the world by total assets with 357,000 employees until the global financial crisis of 2008, today its ranked 10th in size. In comparison, JPMorgan Chase now ranks as the largest bank in the world as of late 2011.
What is Citigroup Stock worth Today?
Citigroup stock is currently trading around 35.00; this is less than a tenth of the 2007 price, but the reasons for that are well documented. At their current price, Citigroup has a market cap of just over $100 billion.
Citigroup Stock History Chart
Citigroup Stock Price History
Banking stocks were seen as safe harbor prior to the financial meltdown of 2008. Since then they’ve come in for a rough ride. Citygroup we’re trading in the mid 500s in 2007 they’d be lucky to see the mid 50s today.
This reversal of fortune will come as no surprise, since it was the major banks that caused this crisis in the first place. Cheap lending without proper controls in place was a time bomb waiting to happen. But I guess we all went along for the ride, while the good times lasted.
With Citygroup trading so low, they could be considered undervalued. There are still some rough times ahead though. Citigroup failed a Federal Reserve stress test in 2012 and had to postpone increased dividend payments and a proposed share buyback.
Citigroup Stock Split History
Citigroup has had eight splits. The first split was a 2:1 split on March 13th, 1987 with the price trading at 94.50 the previous day and closed at 48.25 the day after, resulting in a profit of 2.12%.
The second split was a 3:2 split and took place on March 1st, 1993 with the stock trading at 54.88 the previous day and closed at 36.50 the day after, resulting in a loss of -0.24%.
The third split was a 4:3 split and took place on Aug 30th, 1993 with the stock trading at 57.00 the previous day and closed at 43.25 the day after, resulting in a profit of 1.17%.
The fourth split was a 3:2 split and took place on May 28th, 1996 with the stock trading at 62.38 the previous day and closed at 40.75 the day after, resulting in a loss of -2.01%.
The fifth split was a 4:3 split and took place on November 25th, 1996 with the stock trading at 60.13 the previous day and closed at 36.50 the day after, resulting in a loss of -0.24%.
The sixth split was a 3:2 split and took place on November 20th, 1997 with the stock trading at 73.44 the previous day and closed at 51.00 the day after, resulting in a profit of 4.17%.
The seventh split was a 3:2 split and took place on Jun 1st, 1999 with the stock trading at 66.25 the previous day and closed at 42.94 the day after, resulting in a loss of -2.78%.
The second split was a 4:3 split and took place on August 28th, 2000 with the stock trading at 75.94 the previous day and closed at 58.88 the day after, resulting in a loss of -0.24%.
When Will Citigroup Stock Split Again?
With the stock still recovering from the recession of 2008-09 a split in the near future seems unlikely. In the long term however the board are likely to want to reward long suffering share holders with a split.
This isn’t likely to happen before 2015 however, by which time the company should be firmly back on its feet and its capitalization should be back to pre-recession levels. Should you buy the stock in expectation for a split? No, you should buy it for long term growth.
Does Citigroup Stock Pay a Dividend?
Citigroup currently pays a quarterly dividend of a penny a share. This is well below the level it was at before the financial crisis hit, it’s also well below other financial services companies like JP Morgan which paid out close to $10 billion in dividends during 2011.
Should You Invest in Citigroup Stock?
There’s no question that Citigroup is undervalued at the moment, but is it a good time to buy? Well you’d need to be brave to go out and buy Citigroup stock, don’t forget this is a bank that’s still 34% owned by the U.S. tax payer.
But that being said there’s light at the end of the tunnel, Citigroup is a profitable company with billions in worldwide assets and a very lucrative money management business. Add to that the true value of the bank is currently around the 60.00 mark, so you’re looking at a 50% gain more or less straight away once the banks balance sheet has recovered.
Should you buy? I’d say they’re a good bet right now, and don’t forget you’ll be helping out the economy by doing so, since every share you buy makes the governments stock more valuable which ultimately benefits everyone.
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