Citigroup Soars 2.24% on Job Cuts, Price Target Hike

Citigroup's stock price surged 2.24% today, marking its fourth consecutive day of gains and a 4.89% increase over the past four days. The share price reached its highest level since February 2025, with an intraday gain of 2.63%.

The strategy of buying C shares after they reached a recent high and holding for 1 week showed underperformance over the past 5 years. The annualized return was -1.2%, significantly lower than the S&P 500's 6.8% return over the same period. This indicates that relying on recent highs as a buying trigger and holding for a short duration may not be an effective strategy, as it failed to capitalize on broader market gains.

Citigroup's recent stock price movements can be attributed to several key factors. The company has announced plans to streamline its operations by cutting 20,000 jobs and aiming for $2-2.5 billion in cost savings by 2026. This strategic move is expected to enhance operational efficiency and boost profits, which has positively influenced investor sentiment.

Additionally, Morgan Stanley analyst Betsy Graseck has raised the price target for Citigroup shares from $90.00 to $94.00. This adjustment reflects a positive outlook for the company, further bolstering investor confidence and contributing to the stock's upward trajectory.