Citigroup’s $20 Billion Buyback Plan Signals Strength: What Investors Need to Know

Investors responded to Citigroup’s (C) quarterly earnings with enthusiasm as the stock jumped more than 7%.

The mega financial company reported quarterly results that surpassed Wall Street analyst recommendations this morning.

For the quarter, Citigroup reported strong operating results in all five of the company’s business lines.  Top line revenue came in better than expected at $19.58 billion.  Expectations were for $19.51 billion.

The company’s earnings per share also beat their target by $0.12 per share at $1.34 for the quarter.

Citigroup initiated a major transformation plan in 2024 in an effort to unlock value and drive higher returns.  Management backed that initiative up by announcing a new $20 billion stock buyback program.

Like many of the other large financials, Citigroup shares have been trading in a range ahead of the earnings results.  Investors have been anxious about the outlook for banking stocks as the interest rate outlook for 2025 becomes vaguer.

Comments from Goldman Sach’s CEO today suggest that the business environment for banking may improve dramatically as incoming President-elect Trump is perceived to be more business friendly.

From the stock’s chart perspective, Citigroup is set to move higher over the next 3-4 months not withstanding any economic challenges.

Shares are supported by strong technical trend support from their 50- and 200-day moving averages. This suggests that Citigroup shares will continue to experience positive momentum.

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