Citigroup Shares Soar 1.82% on Wealth Unit Sale

Citigroup (C) shares surged 1.82% intraday, marking its highest level since March 2025, with a 0.88% increase, extending its winning streak to two days and a 5.77% gain over the past two days.

The strategy of buying C shares after they reach a recent high and holding for 1 week yielded moderate returns over the past 5 years. The annualized return was 21.82%, slightly underperforming the market by 7.09 percentage points. With a final market capitalization of $188.62 billion, Uber Technologies remained a strong performer in the period. This result highlights the effectiveness of the strategy, although it suggests that tight stop-losses may be warranted due to the moderate risk involved.

Citigroup Inc. (C) has announced the sale of its wealth alternatives unit, Citi Global Alternatives, to fintech firm iCapital. This strategic move is aimed at enhancing Citigroup's wealth management services. The unit, which includes over 180 funds in private equity and alternative investments, is part of Citigroup's broader efforts to streamline its operations. This divestment is seen as a significant step in Citigroup's strategy to focus on core strengths and improve operational efficiency.

Analysts have noted that this sale could potentially free up resources for Citigroup to invest in other areas of its business, such as digital banking and fintech innovations. The transaction is expected to have a positive impact on Citigroup's stock price, as investors view it as a proactive measure to enhance the company's competitive position in the market. The sale of Citi Global Alternatives is part of a broader trend in the financial sector, where banks are increasingly looking to divest non-core assets to focus on their core competencies.