The present market capitalization of Citigroup Inc. (NYSE: C) is $185.9B, working out to $67.90 a share. Citigroup has a notable price-to-sales ratio. Where the industry average is 6.44, Citigroup’s ratio is 2.51. Price-to-sales ratio is a generally accepted figure for comparing stock values; traders and investors can easily derive the ratio themselves by dividing market capitalization by total sales in the past year. Companies with lower ratios are generally more attractive investment opportunities.
In the past five years, Citigroup Inc. sales have averaged -1.9 percent, yet earnings per share in the same period grew strongly – an average of 17.2 percent.
Returning Value To Shareholders
Many companies reward their shareholders through the use of a dividend system. Dividends can be paid to shareholders in many different ways. Companies may pay dividends in cash, stocks, or in less-common ways. Dividends are typically taken from a company’s profits. The particulars of dividend payments are set by its board of directors; the company’s shareholders have to collectively approve the dividend system established by the directors.
In the past twelve months, Citigroup has paid dividends to shareholders at a ratio of 17.7 percent. At present, Citigroup offers dividend growth over a five-year period of 88.82 percent, and a general dividend yield of 1.89 percent. Citigroup shares have traded between $80.70 and $56.55 in the past year. At present, Citigroup’s stock price is over its 52-week low (20.07%) and trailing its 52 week high (-15.86%).
Citigroup Inc. (NYSE: C) showed the stock volatility of 2.73 percent over the last week. This compares well to volatility for the past month was 2.17 percent. The stock’s weekly and monthly overall performance were less impressive, at -7.58% and -10.97%, respectively. This falls in line with long-term trends; Citigroup’s last quarter saw a drop of -9.05 percent, and over the past 12 months, it was 16.97%. Year to Date performance for Citigroup was at -8.75%.
Today a significant number of traders and investors rely on stochastic indicators to conduct technical stock analyses. Invented and popularized by George Lane, the stochastic is a method for judging the momentum of a given security by comparing its closing price to its price range over a set period of time. Stochastic indicators predict that closing prices veer into the upper range of price movements when the security’s price is undergoing a surge.
Citigroup Inc.’s (NYSE: C) stochastic value has been steady at 18.48% for the past nine days. Over longer ranges, 14 and 20 days, that value stands at 18.69% and 14.32%, respectively.
Wells Fargo & Company (NYSE: WFC) last closed at $50.98 per share. The stock price has moved nearly 16 percent downwards since the start of the year. Although the industry average price to sales ratio is 6.44, Wells Fargo has kept its own price to sales ratio at a respectable 2.84. (This ratio represents equity market value versus stock sales. This ratio tends to fluctuate with changes in the company’s total revenues. Wells Fargo’s revenue has been growing 4 percent per year, on overage, in the last five years. Net income has grown at an average rate of 1.5 percent over the same period.
At the close of the last trading session, Wells Fargo’s stock stood at 23.12 percent below its high in the last year and 14.84 percent below SMA 50. The simple moving average, or SMA, is calculated by adding a security’s closing prices together over a number of time periods and dividing the total by the number of periods being tracked. Wells Fargo’s current stock price stands 10.59 percent beneath its SMA 20 and 9.28 percent under its SMA 200. This post from Barclay Simpson examines what is going on at Wells Fargo in detail.
Technical Analysis, In-Depth
Smart investors use a wide range of different technical indicators in order to make accurate technical analysis of stocks that interest them. One key figure is average true range, a value derived by taking a moving average of a security’s true ranges over a span of multiple time periods. The most frequently-used average true range is a 14-day one.
Average True Range, or ATR, is important because it gives traders and investors fairly insightful data on how volatile an asset currently is. It’s an easy-to-derive figure which does not require advanced mathematics to find. An accurate ATR can be calculated using nothing but publically-available price data for the historical period being examined. One critical piece of information to keep in mind is that ATR speaks only to volatility. The raw number itself says nothing about what direction the asset’s price is moving.