Home / Feature / Citigroup Inc. (NYSE:C) Stands To Get Less Of A Profit Boost Than Other Big U.S. Banks- American International Group (NYSE:AIG)

Citigroup Inc. (NYSE:C) Stands To Get Less Of A Profit Boost Than Other Big U.S. Banks- American International Group (NYSE:AIG)

Citigroup Inc. (NYSE:C) [Trend Analysis] tries to capture market sentiments, shares declined -0.70% to $59.81. Citigroup Inc (C) declared that it stands to get less of a profit boost than other big U.S. banks from lower corporate tax rates expected from the new government in Washington. A number of bank stock analysts have worked through broad tax proposals by Republicans and President-elect Donald Trump and estimate that a new tax law could increase Citigroup earnings per share only half as much as some rivals.

At the same time, Citigroup may have to slash $4 billion or more of the value of an unusually large income tax asset that the bank holds as a result of losses it suffered during the financial crisis of 2007-2009. “If the U.S. cuts corporate tax rates, they will still benefit, just benefit less,” said Barclays analyst Jason Goldberg. The differences between Citigroup and its competitors highlight how corporations have different interests in the details of a new tax law, such as how foreign income is treated and how bank business consumers might be favored less than individuals.

When calculating EPS estimates for the current year from sell-side analysts, the Price to current year EPS stands at 146.10%. Investors looking further ahead will note that the Price to next year’s EPS is 10.44%. (What Market Forces Produce Volatility in NYSE:C Share? Find Free Report Here)

As for as concerns shares volumes, in share of capital Citigroup Inc. (NYSE:C) has 2879.90 million outstanding shares among them 2842.65 million shares have been floated in market exchange. C institutional ownership remained 73.00% while insider ownership included 0.10%. The firm attains analyst recommendation of 2.20 with week’s performance of -0.59%

American International Group, Inc. (NYSE:AIG) [Trend Analysis] shows fluctuation in active trade, on Wednesday shares fell -0.13% to $67.11. The 52-week high of the share price is -0.53% and 52-week low of the share price is 40.08%. Current stock price is in the upbeat territory taking into account of 20 days moving average with 1.43% and continued bullish run for 50 days moving average with 4.79%.

Moving toward technical analysis, debt to equity ratio stands at 0.36. To take look on ration of tradable shares being shorted in market, float short ration was 1.75%, as compared to sentiment indicator; Short Ratio was 2.92. Taking notice in average true range, it was 0.92.

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About Steve Hart

Steve Hart is a longtime business journalist who has covered everything from municipal bonds to management, major banks and MBA programs. Prior to becoming a writer at Seneca Globe News, Steve Hart was a securities analyst and a budget and fiscal analyst. Steve can be reached at steve.hart@senecaglobe.com

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