Latest news with #Citigroup
Daily Mail
5 hours ago
- Business
- Daily Mail
Warren Buffett's quiet moves send shockwaves through Wall Street: 'Canary in the coal mine'
Famed investor Warren Buffett has quietly executed a series of multi-billion-dollar exits from major US banks. It appears to be a strategic shift that analysts say signals a sharp turn in sentiment from the world's most closely watched investor - and a growing belief that America's booming financial sector is headed for turbulence. During the first half of 2025, Buffett's Berkshire Hathaway sold more than $3.2 billion in shares tied to the banking industry, including a $1 billion exit from Citigroup, a $2 billion reduction in Bank of America, while also trimming holdings in Capital One. The moves were disclosed through SEC filings and confirmed by analysts monitoring Berkshire's quarterly portfolio updates. 'Berkshire has clearly been reducing its exposure to U.S. bank stocks,' said Larry Cunningham, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware to The Telegraph. 'That activity signals a cautious or even bearish outlook on banking.' The divestments come at a moment of strong profitability in the sector. Goldman Sachs this week reported a 22% jump in quarterly earnings, while Citigroup profits surged 25%, both beating Wall Street expectations. The KBW Nasdaq Bank Index is nearing record highs. Yet despite these short-term gains, Buffett is building a historically large cash position - now exceeding $350 billion - and repositioning Berkshire's portfolio toward energy and consumer staples, including fresh investments in Occidental Petroleum and Constellation Brands. Buffet famously warned about derivatives as 'financial weapons of mass destruction' years before the 2008 collapse. He quietly accumulated cash before the COVID crash in 2020. Markets may be known for their irrational behavior but Buffett's moves are usually based on numbers, patterns, and a gut instinct honed over seven decades. His legacy is built not just on the billions he made, but the crashes he avoided. His cooling on banks is the classic contrarian signal the Oracle of Omaha is famous for. The rapid repositioning has not gone unnoticed by investors already rattled by political volatility, surging inflation, and uncertainty surrounding US monetary policy. 'Part of this could be driven by expectations that these current equity valuations are not sustainable,' said Gennadiy Goldberg, head of US rates strategy at TD Securities. Buffett's moves align with a broader pullback among major industry leaders. Jamie Dimon, CEO of JPMorgan Chase, sold $31.5 million in company stock in April, following a $125 million sale in 2024. It was his first personal sell-off since becoming CEO in 2005. Such exits come as Wall Street deals with rising inflation and uncertainty over Trump's economic policy. The Trump administration's revived trade wars have injected volatility into the markets and uncertainty into long-term growth projections. US inflation hit 2.7% in June, and the Federal Reserve has twice slashed its 2025 GDP forecast, from 2.1% to 1.4%. The central bank's projections signal weakening consumer demand and a potential slowdown in growth during the second half of the year. Higher inflation could force long-term Treasury yields up - triggering a domino effect of rising loan defaults, declining merger activity, and stress on bond portfolios. 'The big, big red flag is going to be consumption,' said Kambiz Kazemi, chief investment officer at Validus Risk Management. 'If unemployment goes up and consumer spending drops, it triggers a feedback loop through the entire borrowing ecosystem.' Concerns are also rising over the Trump administration's confrontational stance toward the Federal Reserve. Meanwhile, Trump's escalating threats to remove Federal Reserve Chairman Jerome Powell have rattled investors and bank CEOs alike. JPMorgan's Dimon, Goldman Sachs' David Solomon, Citigroup's Jane Fraser, and Bank of America's Brian Moynihan have all warned the White House against destabilizing monetary policy. 'Uncertainty around tariffs, and more generally, uncertainty about most subjects — the way the administration is running things - is going to be slowly eroding the trust in the system,' Kazemi added. 'The reality has to catch up.' A shake-up at the Fed could lead to artificially lowered short-term interest rates, further distorting inflation expectations. While trading revenues have remained strong amid tariff-driven market volatility, other banking segments, particularly corporate lending and dealmaking are already showing signs of strain. The bond market has begun to reflect broader investor skepticism. Bill Gross, co-founder of Pimco and widely regarded as the 'Bond King,' issued a warning on X earlier this week: 'Investors wake up! I for one am moving defensively - more cash, buying value with 4-5% dividend yields. And an emphasis on non-US.' Gross's comments underscore growing unease in global markets, with inflation, rate uncertainty, and trade policy reshaping the investment landscape faster than Wall Street earnings can keep up. Although Berkshire Hathaway maintains significant exposure to the financial sector - 16.4% in American Express and 10.1% in Bank of America, its trajectory seems clear. The firm is reallocating toward sectors traditionally seen as more resilient in downturns. 'It's always hard to know how much of Berkshire's selling reflects macroeconomic pessimism versus firm-specific or internal considerations,' Cunningham said. 'But the concentration in energy and staples suggests a shift toward stability and defensiveness.'
Yahoo
7 hours ago
- Business
- Yahoo
AGNC Investment Earnings: What To Look For From AGNC
Mortgage REIT AGNC Investment (NASDAQ:AGNC) will be reporting earnings this Monday after the bell. Here's what to look for. AGNC Investment missed analysts' revenue expectations by 73.6% last quarter, reporting revenues of $78 million, down 83.3% year on year. It was a slower quarter for the company, with a slight miss of analysts' tangible book value per share estimates. Is AGNC Investment a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting AGNC Investment's revenue to grow 1,246% year on year to $274.9 million, a reversal from the 108% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.41 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Looking at AGNC Investment's peers in the banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Citigroup delivered year-on-year revenue growth of 8%, beating analysts' expectations by 3.5%, and Texas Capital Bank reported revenues up 15.2%, topping estimates by 2.7%. Citigroup traded up 2.9% following the results while Texas Capital Bank was also up 4.8%. Read our full analysis of Citigroup's results here and Texas Capital Bank's results here. There has been positive sentiment among investors in the banks segment, with share prices up 10.3% on average over the last month. AGNC Investment's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $9.66 (compared to the current share price of $9.26). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
Yahoo
7 hours ago
- Business
- Yahoo
AGNC Investment Earnings: What To Look For From AGNC
Mortgage REIT AGNC Investment (NASDAQ:AGNC) will be reporting earnings this Monday after the bell. Here's what to look for. AGNC Investment missed analysts' revenue expectations by 73.6% last quarter, reporting revenues of $78 million, down 83.3% year on year. It was a slower quarter for the company, with a slight miss of analysts' tangible book value per share estimates. Is AGNC Investment a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting AGNC Investment's revenue to grow 1,246% year on year to $274.9 million, a reversal from the 108% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.41 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Looking at AGNC Investment's peers in the banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Citigroup delivered year-on-year revenue growth of 8%, beating analysts' expectations by 3.5%, and Texas Capital Bank reported revenues up 15.2%, topping estimates by 2.7%. Citigroup traded up 2.9% following the results while Texas Capital Bank was also up 4.8%. Read our full analysis of Citigroup's results here and Texas Capital Bank's results here. There has been positive sentiment among investors in the banks segment, with share prices up 10.3% on average over the last month. AGNC Investment's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $9.66 (compared to the current share price of $9.26). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
Yahoo
17 hours ago
- Business
- Yahoo
Citigroup (C) Partners With Ant International For Enhanced FX Solutions In Aviation Industry
Citigroup recently initiated a pilot FX risk management solution with Ant International, targeting the aviation industry's payment challenges. Over the last quarter, Citigroup's share price rose by 48%, significantly outperforming the broader market rise of 15% over the past year. This impressive performance can be partly attributed to the company's strong earnings report, where net income increased from the previous year, and its active share buyback strategy. Additionally, the inclusion of Citigroup in various Russell indices and multiple dividends announcements likely provided further momentum to the stock's gains. Buy, Hold or Sell Citigroup? View our complete analysis and fair value estimate and you decide. These 17 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch. The recent announcement of Citigroup's pilot FX risk management solution with Ant International highlights its ongoing efforts to address challenges in the aviation industry's payment systems. This initiative could have positive implications on Citigroup's revenue and earnings forecasts, as it aligns with the company's strategic focus on innovation and client acquisition, potentially enhancing operational efficiency and widening profit margins. Over a five-year period, Citigroup's shareholders enjoyed a total return of 118.37%. This longer-term performance underscores the company's ability to generate value through market cycles, despite the challenges it faces due to economic and geopolitical uncertainties. Over the past year, Citigroup outperformed the broader market, delivering returns above the market's 15% increase. When examining the current share price of US$93.45 relative to the consensus price target of approximately US$99.12, there remains a modest discount of approximately 6%. The company's recent achievements and strategic initiatives may influence analysts' projections, potentially resulting in upward revisions to revenue and earnings estimates. Nonetheless, it's important to continuously assess the impact of macroeconomic factors, regulatory changes, and trade challenges that could alter these forecasts. Evaluate Citigroup's historical performance by accessing our past performance report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include C. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Valaris Gets Target Bump from Citi as Offshore Execution Holds Steady
Valaris is one of the best oil drilling stocks according to hedge funds, backed by a recent rating adjustment from Wall Street. On July 11, Citigroup maintained a Neutral rating on the stock but raised its price target from $47 to $50. The move signals growing confidence in Valaris's ability to navigate the offshore cycle, even as conditions remain mixed. Analyst Scott Gruber pointed to Valaris's modern fleet and a strong slate of recent contract wins as key reasons for the target bump. He noted that while macro softness is still weighing on day rates, Valaris's utilization trends and operational execution offer a base for potential upside once pricing firms. Oil platform Valaris (NYSE: VAL) is a pure-play offshore driller with a global fleet of high-spec drillships, semisubmersibles, and jackups. The company serves deepwater markets across the Gulf of Mexico, North Sea, West Africa, and the Middle East, with most of its revenue tied directly to drilling operations. While we acknowledge the potential of VAL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None.
