Why Shares of Citigroup Are Falling Today
Shares of Citigroup (NYSE: C) traded roughly 4.5% down in the first half hour of trading today after the stock got downgraded by Jefferies. As of 11 a.m. ET, Citigroup had recouped some of those losses and only traded down about 2.2%.
Since its highly anticipated investor day last week, analysts have been downgrading Citigroup for its weaker-than-expected medium-term financial targets.
The bank said it expects to achieve an 11% to 12% return on tangible common equity (ROTCE) over the next three to five years, lower than analysts had been expecting. ROTCE is the return on shareholder capital minus intangible assets, goodwill, and preferred equity.
Source Fool.com