Citigroup (C) Shares Set to Outperform Through Q2 Results
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After trading below the $4 per share level since June 28th, Citigroup, Inc. (NYSE: C) is close to re-taking that key psychological level. Shares last traded at $3.98.
The stock has been seeing a benefit recently as the overhang from U.S. government's share sales has been temporarily put on hold during the company's quite period for second quarter earnings.
From April 26 through July 1, Treasury sold 2.6 billion shares of Citigroup. On average, Treasury has sold 57 million shares per day, or about 7% of the avenge three month daily volume.
Citigroup's stock is down 18 percent since the government started selling shares. This is worse than the 12.3 percent drop in the S&P 500 during that time frame. This is also worse than the 14.7 percent drop in the Financial Select Sector SPDR (NYSE: XLF) during that time frame.
This underperformance changed once the government halted selling.
Citigroup's stock is up 6 percent since the government announced it would temporary halt sales. This gain has outperformed the 3.5 percent rise in the S&P 500 during that time frame. This gain has also outpaced the 3.3 percent rise in the Financial Select Sector SPDR (NYSE: XLF) during that time frame.
The data above suggests that Citigroup will continue to outpace the sector and broader market until Treasury sales resume. Once they resume, shares could once again underperform.
Citigroup will issue its second quarter results on Friday, July 16, 2010. Treasury still owns approximately 5.1 billion shares of Citigroup and will continue to sell in an "orderly fashion" once the blackout period ends.
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The stock has been seeing a benefit recently as the overhang from U.S. government's share sales has been temporarily put on hold during the company's quite period for second quarter earnings.
From April 26 through July 1, Treasury sold 2.6 billion shares of Citigroup. On average, Treasury has sold 57 million shares per day, or about 7% of the avenge three month daily volume.
Citigroup's stock is down 18 percent since the government started selling shares. This is worse than the 12.3 percent drop in the S&P 500 during that time frame. This is also worse than the 14.7 percent drop in the Financial Select Sector SPDR (NYSE: XLF) during that time frame.
This underperformance changed once the government halted selling.
Citigroup's stock is up 6 percent since the government announced it would temporary halt sales. This gain has outperformed the 3.5 percent rise in the S&P 500 during that time frame. This gain has also outpaced the 3.3 percent rise in the Financial Select Sector SPDR (NYSE: XLF) during that time frame.
The data above suggests that Citigroup will continue to outpace the sector and broader market until Treasury sales resume. Once they resume, shares could once again underperform.
Citigroup will issue its second quarter results on Friday, July 16, 2010. Treasury still owns approximately 5.1 billion shares of Citigroup and will continue to sell in an "orderly fashion" once the blackout period ends.
Market Moving News and Intelligence - Free Sign-Up
http://www.streetinsider.com/premium_content.php
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