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May 17, 2022, 9:57 a.m. EDT

Citigroup Hikes as Buffett Ups Stake

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May 17, 2022 (Baystreet.ca via COMTEX) -- Citigroup /zigman2/quotes/207741460/composite C -0.83% shares got a boost from Warren Buffett who just disclosed a big stake in the struggling bank.

The bank stock jumped after a filing revealed Monday evening that Buffett's Berkshire Hathaway /zigman2/quotes/208872451/composite BRK.A -0.25% added more than 55 million shares to build a stake worth $2.95 billion as of the end of March.

The 91-year-old "Oracle of Omaha" scooped up Citi shares while they have been underperforming the rest of the financial sector in the past 12 months. The stock is down nearly 40% while the Financial Select Sector SPDR Fund is off by 12% over the same period.

Citi welcomed Jane Fraser as its new CEO a year ago, the first female chief of a major U.S. bank. She has set a medium-term target of 11% to 12% for return on tangible common equity, aiming to overhaul a company that has deeply underperformed U.S. rivals for years.

Fraser has opted to exit less-profitable parts of the firm's global empire, including leaving 13 retail markets across Asia and Europe.

Citi now joins some of those rivals in Buffett's portfolio. Berkshire owned $41.6 billion of Bank of America /zigman2/quotes/200894270/composite BAC -1.52% at the end of March, marking its second biggest holding next to Apple. Berkshire has owned Bank of American since 2017.

Berkshire built a $390 million new stake in Ally Financial /zigman2/quotes/206227672/composite ALLY -2.48% . The stock jumped 4% in pre-market trading Tuesday after the disclosure.

The conglomerate also held shares in Bank of NY Mellon /zigman2/quotes/200171276/composite BK -0.89% , U.S. Bancorp /zigman2/quotes/206934678/composite USB -0.89% , Mastercard /zigman2/quotes/207581792/composite MA +1.25% and Visa /zigman2/quotes/203660239/composite V +0.36% . The conglomerate exited its position in Wells Fargo in the first quarter.

C shares galloped $2.55, or 5.4%, to $50.01 early Tuesday.

COMTEX_407333397/2559/2022-05-17T09:57:26

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com. You can also contact MarketWatch Customer Service via our Customer Center.

/zigman2/quotes/207741460/composite
US : U.S.: NYSE
$ 46.82
-0.39 -0.83%
Volume: 6.07M
June 29, 2022 12:49p
P/E Ratio
5.51
Dividend Yield
4.37%
Market Cap
$91.68 billion
Rev. per Employee
$358,868
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/zigman2/quotes/208872451/composite
US : U.S.: NYSE
$ 411,137
-1,033 -0.25%
Volume: 1,153
June 29, 2022 12:49p
P/E Ratio
7.38
Dividend Yield
N/A
Market Cap
$605.07 billion
Rev. per Employee
$742,188
loading...
/zigman2/quotes/200894270/composite
US : U.S.: NYSE
$ 31.77
-0.49 -1.52%
Volume: 15.28M
June 29, 2022 12:49p
P/E Ratio
9.06
Dividend Yield
2.64%
Market Cap
$259.91 billion
Rev. per Employee
$460,394
loading...
/zigman2/quotes/206227672/composite
US : U.S.: NYSE
$ 33.65
-0.85 -2.48%
Volume: 783,474
June 29, 2022 12:49p
P/E Ratio
4.22
Dividend Yield
3.58%
Market Cap
$11.15 billion
Rev. per Employee
$1.02M
loading...
/zigman2/quotes/200171276/composite
US : U.S.: NYSE
$ 42.48
-0.38 -0.89%
Volume: 1.20M
June 29, 2022 12:49p
P/E Ratio
10.51
Dividend Yield
3.21%
Market Cap
$34.62 billion
Rev. per Employee
$326,212
loading...
/zigman2/quotes/206934678/composite
US : U.S.: NYSE
$ 46.02
-0.41 -0.89%
Volume: 1.99M
June 29, 2022 12:49p
P/E Ratio
9.90
Dividend Yield
4.00%
Market Cap
$69.67 billion
Rev. per Employee
$329,554
loading...
/zigman2/quotes/207581792/composite
US : U.S.: NYSE
$ 322.28
+3.99 +1.25%
Volume: 1.67M
June 29, 2022 12:49p
P/E Ratio
33.47
Dividend Yield
0.61%
Market Cap
$309.58 billion
Rev. per Employee
$786,792
loading...
/zigman2/quotes/203660239/composite
US : U.S.: NYSE
$ 198.83
+0.71 +0.36%
Volume: 1.69M
June 29, 2022 12:49p
P/E Ratio
31.92
Dividend Yield
0.76%
Market Cap
$412.72 billion
Rev. per Employee
$1.12M
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