Citigroup (C) shares are inching down this morning following reports that legendary investor Warren Buffett no longer has a position in the financial services behemoth.
According to a recent 13F filing with the Securities and Exchange Commission, his conglomerate, Berkshire Hathaway, has sold all 14.6 million shares of the bank that it held heading into 2025. Investors should note that the 13F filing is current as of March 31.
Despite today’s price action, Citi stock is up nearly 36% versus its year-to-date low.
Why Is Buffett’s Move Significant for Citi Stock?
Berkshire’s filing is significant for the bank stock since Buffett is known for his long-term, value-driven investment strategy. Him pulling out of C stock could, therefore, signal concerns about the Citi’s future prospects, leading other investors to reconsider their positions as well.
More importantly, the “Oracle of Omaha” bailed on Citi shares to load up on Constellation Brands (STZ), indicating he prefers consumer goods over bank stocks for the back half of 2025.
Wells Fargo Disagrees with Buffett on C Shares
Despite Buffett’s revelation, a senior Wells Fargo analyst, Mike Mayo remains uber bullish on Citi stock, primarily because it’s currently going for about a 20% discount to its tangible book value.
C shares remain worth owning because the firm’s largest reorganization in 50 years has improved management’s accountability, driving efficiency and lowering expenses, he told clients in a recent note.
All in all, the bank stock is well-positioned to outperform even in a mild downturn as it continues to transition from “value destruction to value creation,” the analyst added.
Note that Citi reported its financial results for the first quarter that handily topped Street estimates in April. Plus, the company currently pays a dividend yield of 2.97%, which makes it all the more exciting to own in 2025.
Mayo’s $110 price target on the former Warren Buffett stock signals potential upside of close to 50% from here.
Should You Invest in Citigroup in May?
The rest of the Wall Street is positive on Citi’s major overhaul in recent months as well.
The consensus rating on C shares currently sits at “Moderate Buy” with the mean target of about $84 indicating potential upside of 12% from current levels.
