According to an announcement by the US Office of the Comptroller of the Currency on Friday, Citibank is to pay a fine of $30 million, as it repeatedly violated real estate holding rules and did not manage to meet its commitment to take corrective actions.
Citigroup shares closed higher for a fourth consecutive trading session in New York on Monday. The stock edged up 0.20% ($0.14) to $70.24, after touching an intraday low at $69.61, or a price level not seen since October 10th ($67.55).
Shares of Citigroup Inc have risen 34.92% so far in 2019 compared with an 18.32% gain for the benchmark index, S&P 500 (SPX).
In 2018, Citigroup’s stock went down 30.04%, thus, it underperformed the S&P 500, which registered a 6.24% loss.
The time period, during which a national bank may hold foreclosed and “other real estate owned” assets, is limited by federal law.
Last Friday a spokesperson for Citigroup said that the Wall Street bank failed to meet the holding requirement in some instances. However, its clients remained unaffected.
“Since identifying the issue, we have strengthened controls, processes and procedures to ensure the timely disposition of these assets,” the person was quoted as saying by Reuters.
Analyst stock price forecast and recommendation
According to CNN Money, the 22 analysts, offering 12-month forecasts regarding Citigroup Inc’s stock price, have a median target of $80.00, with a high estimate of $107.00 and a low estimate of $52.00. The median estimate represents a 13.90% upside compared to the closing price of $70.24 on October 14th.
The same media also reported that at least 18 out of 24 surveyed investment analysts had rated Citigroup Inc’s stock as “Buy”, while 2 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
