Treasury's 3rd Citigroup (C) Stock Trading Plan Ends Tomorrow - Look Out Above
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Today the U.S. Treasury announced a public offering of Citigroup (NYSE: C) trust preferred securities that it owns, but more important short-term news happens tomorrow.
On September 30 the government's third common stock trading plan, covering 1.5 billion shares, comes to an end - with or without being completed.
The temporary halt in the trading plan is related to a blackout period ahead of third quarter earnings results, which starts October 1. Citigroup reports results on October 18, so selling would likely resume shortly after that. Selling in the latest quarter started 7 days after the second quarter earnings results.
Treasury likely sold most, if not all, of the 1.5 billion shares under the plan, which would leave them with about 3.6 billion shares. The government started with 7.7 billion shares.
Shares of Citigroup have tended to outperform during the time the Treasury is not selling.
Last quarter, during the time that the Treasury didn't sell the stock was up 9 percent, versus a 6 percent rise in the S&P 500 and 4.6 percent rise in the Financial Select Sector SPDR (NYSE: XLF).
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On September 30 the government's third common stock trading plan, covering 1.5 billion shares, comes to an end - with or without being completed.
The temporary halt in the trading plan is related to a blackout period ahead of third quarter earnings results, which starts October 1. Citigroup reports results on October 18, so selling would likely resume shortly after that. Selling in the latest quarter started 7 days after the second quarter earnings results.
Treasury likely sold most, if not all, of the 1.5 billion shares under the plan, which would leave them with about 3.6 billion shares. The government started with 7.7 billion shares.
Shares of Citigroup have tended to outperform during the time the Treasury is not selling.
Last quarter, during the time that the Treasury didn't sell the stock was up 9 percent, versus a 6 percent rise in the S&P 500 and 4.6 percent rise in the Financial Select Sector SPDR (NYSE: XLF).
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