Another Bank Stock, Citigroup, Set to Take on the Earnings Confessional

The equity has lost 25% this year

Digital Content Manager
Jul 13, 2022 at 12:09 PM
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The shares of Citigroup Inc (NYSE:C) are down 1.8% at $45.31 this afternoon as investors gear up for the bank name's second-quarter earnings report, which is due out before the open on Friday, July 15. With a slew of bank names set to kick off another busy earnings season, we'll take a closer look at C, specifically, and break down what traders might be able to expect following its Friday confessional. 

Looking back over the past two years, Citigroup stock has a fairly dismal history of post-earnings returns. After all but two of these last eight reports C was lower during the following session, averaging a next-day swing of 2.5%, regardless of direction. This time around, the options pits are pricing in a larger 5.9% return. 

Speaking of options traders, Citigroup stock's options pits have rarely been more bearish during the past year. While calls are still outnumbering puts on an overall basis, the equity's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than all but 1% of readings from the past year. 

Analysts are hesitant ahead of the event. Of the 15 in coverage, nine say "hold" or worse. Meanwhile, the 12-month consensus price target of $59.40 is a 30.8% premium to current levels. 

This general pessimism isn't unfounded. C has traded near its annual lows since June, and earlier today hit its lowest level since November 2020 at $44.66. Citigroup stock's 70-day moving average put pressure on the stock's late-May rally attempt, sending C to a near 25% year-to-date deficit. 

c july 13

 

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