Citigroup's Stock Is Down 7% Since March 25. Is It About to Drop Further?
Shareholders in Citigroup are reeling from yet another hit to its ongoing recovery. The Wall Street Journalreported this week that the bank is telling shareholders that it will likely miss an important self-imposed profitability target.
Although reports like this aren't unusual on Wall Street, negative news is starting to accumulate at the nation's third largest bank by assets. On March 26, the Federal Reserve rejected Citigroup's request to increase its dividend and share buyback program. And on Monday of this week, the bank said its first-quarter earnings took a $100 million hit from a legal settlement related to the sale of mortgage-backed securities.
Will these issues cause Citigroup's shares to drop when the bank reports earnings next week? In the following video, Motley Fool contributor John Maxfield explains why he doesn't think this is the case -- though, at the current rate, something else could come along in the meantime that might.
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The article Citigroup's Stock Is Down 7% Since March 25. Is It About to Drop Further? originally appeared on Fool.com.John Maxfield has no position in any stocks mentioned. The Motley Fool owns shares of Citigroup. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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