Citigroup Hits New 52-Week High: What's Next for the Stock?

Citigroup Inc. (C) shares hit a 52-week high of $88.82, driven by investors' optimism following the bank's passage of the Federal Reserve's 2025 stress test. The company can now return excess capital to shareholders via dividends and share repurchases, with plans to increase its quarterly dividend by 7% to 60 cents per share. C has a strong liquidity position, with $761 billion in cash and due from banks and total investments, and a $20 billion common stock repurchase program. The company's restructuring efforts, including the elimination of 20,000 jobs, also contributed to its recent price surge.

Citigroup Inc. (C) shares reached a new 52-week high of $88.82 on July 2, 2025, driven by investor optimism following the bank's successful completion of the Federal Reserve's 2025 stress test. The test confirmed that Citigroup has sufficient capital to withstand severe economic downturns, enabling the company to return excess capital to shareholders through dividends and share repurchases.

Citigroup announced plans to increase its quarterly dividend by 7%, to 60 cents per share, starting in the third quarter of 2025, subject to board approval. This move reflects the bank's strong liquidity position, with $761 billion in cash and due from banks and total investments, and a $20 billion common stock repurchase program. The company's dividend yield currently stands at 2.56%, compared to 1.94% for Wells Fargo & Company (WFC) and 2.14% for Bank of America (BAC) [3].

In addition to the dividend increase, Citigroup's restructuring efforts have contributed to its recent price surge. The company plans to eliminate 20,000 jobs, reducing management layers from 13 to eight, and saving $2-2.5 billion annually by 2026. These efforts are expected to lower expenses for 2025 to slightly below $53.4 billion, down from $53.9 billion in 2024 [3].

Citigroup's exit from non-core operations has also freed up capital for investment in higher-return segments, such as wealth management and investment banking (IB). The company expects IB revenues to increase by a mid-single-digit percentage in the second quarter of 2025. Consistent improvement in net interest income (NII) with a compound annual growth rate (CAGR) of 8.4% from 2020 to 2024 has further bolstered investor confidence [3].

References:
[1] https://www.tradingview.com/news/DJN_DN20250701008819:0-u-s-banks-plan-dividend-boosts-buybacks-after-passing-fed-s-stress-test-update/
[2] https://economictimes.indiatimes.com/tech/technology/tech-layoffs-microsoft-tiktok-lead-latest-round-of-job-cuts/articleshow/122226160.cms
[3] https://finviz.com/news/98280/citigroup-hits-52-week-high-how-to-approach-the-stock-now