Berkshire doubles Constellation stake, sells Citigroup and other financial stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 15 2025
0mins
Source: Reuters
Berkshire Hathaway's Investment Moves: Warren Buffett's Berkshire Hathaway has more than doubled its stake in Constellation Brands to 12 million shares, valued at $2.2 billion, while exiting its investment in Citigroup and reducing stakes in Bank of America and Capital One.
Cash Reserves and Future Leadership: The company ended March with $347.7 billion in cash, continuing a trend of being a net seller of stocks for the tenth consecutive quarter, while preparing for Greg Abel to succeed Buffett as CEO in January 2026.
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Analyst Views on C
Wall Street analysts forecast C stock price to fall
18 Analyst Rating
15 Buy
3 Hold
0 Sell
Strong Buy
Current: 139.960
Low
87.00
Averages
131.00
High
150.00
Current: 139.960
Low
87.00
Averages
131.00
High
150.00
About C
Citigroup Inc. is a global diversified financial services holding company. The Company’s segments include Services, Markets, Banking, Wealth and U.S. Personal Banking (USPB). The Services segment includes Treasury and Trade Solutions (TTS) and securities services. TTS provides an integrated suite of tailored cash management, trade and working capital solutions to multinational corporations, financial institutions and public sector organizations. The Markets segment provides corporate, institutional and public sector clients around the world with a full range of sales and trading services across equities, foreign exchange, rates, spread products and commodities. The Banking segment includes investment banking, which supports client capital-raising needs to help strengthen and grow their businesses. The Wealth segment includes Private Bank, Wealth at Work and Citigold and provides financial services to a range of client segments. USPB segment includes branded cards and retail services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Reaction: As of June 29, Citigroup's stock fell by 1.8%, reflecting investor caution ahead of the earnings report, which could impact short-term stock performance.
- Earnings Expectations Analysis: The anticipated earnings of $2.64 per share suggest an increase compared to the previous year, indicating that the company's efforts in cost control and revenue enhancement may be yielding positive results, thereby boosting market confidence.
- Revenue Outlook: The revenue expectation of $23.37 billion highlights Citigroup's competitiveness in the global financial services market, particularly in a rising interest rate environment, potentially laying the groundwork for future growth.
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- Environmental Constraints Impact: PJM indicated that certain power plants might face operational constraints due to environmental permits, raising risks to electric reliability and public safety, which could negatively affect CEG's market position.
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- Price Target Reduction: Citigroup lowered its price target for Constellation from $348 to $297, reflecting a diminished outlook on the company's profitability, which may prompt more investors to reassess their holding strategies.
- Market Reaction: Despite the stock's decline, the market views this as a buying opportunity, particularly for investors seeking stable nuclear energy exposure, as Constellation remains an attractive option due to its consistent profitability.
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- Market Comparison: While Citigroup has lowered its target, Morgan Stanley raised its target to $364 last week, highlighting a divergence in market perceptions of Constellation Energy, prompting investors to carefully assess market sentiment.
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- Share Buyback Plans: JPMorgan Chase initiated a $50 million share buyback, while Morgan Stanley launched a $20 million repurchase plan, which will reduce the number of outstanding shares, thereby boosting earnings per share and further driving up stock prices.
- Optimistic Market Outlook: With second-quarter earnings reports approaching, the banking sector is expected to perform strongly, particularly given record investment banking revenues, which should drive stock prices higher and attract more investors.
See More
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- Capital Ratio Dynamics: Under the hypothetical recession scenario, the aggregate common equity tier 1 (CET1) capital ratio of these banks fell from 12.8% in Q4 2025 to 11.2%, yet remained above regulatory minimums, recovering to 12.7%, showcasing the banks' resilience and recovery capacity.
- Dividends and Buybacks: Following the stress test results, major banks like JPMorgan Chase and Wells Fargo announced dividend increases and initiated share buyback plans, with JPMorgan planning a $50 million buyback, which not only enhances investor returns but also reflects the banks' capital strength and profitability.
- Favorable Investment Timing: This is an opportune time to invest in large banks as most are raising dividends and planning stock buybacks, with second-quarter earnings reports on the horizon; strong performance is expected, especially after a robust Q2 stock market, which could further drive bank stock prices upward.
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Citigroup Inc. Q2 Earnings Preview
- Earnings Release Date: Citigroup Inc. is set to announce its Q2 earnings on July 14, with analysts expecting earnings of $2.64 per share and revenue of $23.37 billion, indicating the company's resilience amid economic fluctuations.
- Market Reaction: As of June 29, Citigroup's stock fell by 1.8%, reflecting investor caution ahead of the earnings report, which could impact short-term stock performance.
- Earnings Expectations Analysis: The anticipated earnings of $2.64 per share suggest an increase compared to the previous year, indicating that the company's efforts in cost control and revenue enhancement may be yielding positive results, thereby boosting market confidence.
- Revenue Outlook: The revenue expectation of $23.37 billion highlights Citigroup's competitiveness in the global financial services market, particularly in a rising interest rate environment, potentially laying the groundwork for future growth.
See More
CEG Shares Drop Nearly 5% Amid Electricity Demand Risks
- Significant Stock Drop: Constellation Energy Corp. (CEG) shares fell nearly 5% on Wednesday after Citi cut its price target from $348 to $297, marking the steepest decline in a month and reflecting market concerns about the company's future performance.
- Electricity Demand Risks: PJM warned that peak electricity demand could reach 159,563 MW on July 1 and 162,860 MW on July 2 amid an expected heatwave, posing threats to grid stability and potentially impacting CEG's operations.
- Environmental Constraints Impact: PJM indicated that certain power plants might face operational constraints due to environmental permits, raising risks to electric reliability and public safety, which could negatively affect CEG's market position.
- Retail Sentiment Shift: Despite the stock's decline, retail investor sentiment on Stocktwits shifted from bearish to bullish, indicating optimism about a potential rebound, with users expressing that buying at these prices is a good opportunity.
See More
Constellation Energy Shares Drop 6.2% Amid Lowered Price Target
- Stock Decline: Constellation Energy's shares fell 6.2% today, recovering from an earlier drop of 7.9%, indicating investor concerns about the company's future performance, which could impact market confidence and short-term capital flows.
- Price Target Reduction: Citigroup lowered its price target for Constellation from $348 to $297, reflecting a diminished outlook on the company's profitability, which may prompt more investors to reassess their holding strategies.
- Market Reaction: Despite the stock's decline, the market views this as a buying opportunity, particularly for investors seeking stable nuclear energy exposure, as Constellation remains an attractive option due to its consistent profitability.
- Industry Outlook: The fundamentals for Constellation in the nuclear sector remain unchanged, as it continues to provide essential power for data centers, underscoring its significant role in the energy transition.
See More
Citigroup Lowers Price Target on Constellation Energy
- Price Target Cut: Citigroup has reduced its price target for Constellation Energy from $348 to $297, indicating lowered expectations for the company, which could weaken investor confidence and impact stock performance.
- Stock Volatility: Following the announcement, Constellation Energy's shares fell by 6.2%, recovering from an earlier decline of 7.9%, demonstrating the market's sensitive reaction to Citigroup's target adjustment, potentially intensifying short-term selling pressure.
- Market Comparison: While Citigroup has lowered its target, Morgan Stanley raised its target to $364 last week, highlighting a divergence in market perceptions of Constellation Energy, prompting investors to carefully assess market sentiment.
- Investment Opportunity: Despite the current stock decline, Constellation Energy is still viewed as a solid choice for conservative investors seeking nuclear energy exposure, particularly in the context of stable profitability, which may present opportunities for long-term investors.
See More
U.S. Major Banks Pass Stress Tests, Boost Dividends
- Stress Test Results: The 32 largest U.S. banks passed the Federal Reserve's stress tests, demonstrating their ability to absorb nearly $708 billion in losses, which enhances market confidence in the banking sector.
- Dividend Increases: Following the test results, banks like JPMorgan Chase, Goldman Sachs, and Wells Fargo raised their dividends, indicating their capacity to return capital to investors even under economic stress, likely attracting more investor interest in bank stocks.
- Share Buyback Plans: JPMorgan Chase initiated a $50 million share buyback, while Morgan Stanley launched a $20 million repurchase plan, which will reduce the number of outstanding shares, thereby boosting earnings per share and further driving up stock prices.
- Optimistic Market Outlook: With second-quarter earnings reports approaching, the banking sector is expected to perform strongly, particularly given record investment banking revenues, which should drive stock prices higher and attract more investors.
See More
Federal Reserve Annual Stress Test Results
- Stress Test Success: The Federal Reserve's annual stress test revealed that the 32 largest U.S. banks could absorb nearly $708 billion in losses during a hypothetical severe recession, indicating strong capital adequacy and the ability to continue lending, thereby bolstering market confidence in the banking system.
- Capital Ratio Dynamics: Under the hypothetical recession scenario, the aggregate common equity tier 1 (CET1) capital ratio of these banks fell from 12.8% in Q4 2025 to 11.2%, yet remained above regulatory minimums, recovering to 12.7%, showcasing the banks' resilience and recovery capacity.
- Dividends and Buybacks: Following the stress test results, major banks like JPMorgan Chase and Wells Fargo announced dividend increases and initiated share buyback plans, with JPMorgan planning a $50 million buyback, which not only enhances investor returns but also reflects the banks' capital strength and profitability.
- Favorable Investment Timing: This is an opportune time to invest in large banks as most are raising dividends and planning stock buybacks, with second-quarter earnings reports on the horizon; strong performance is expected, especially after a robust Q2 stock market, which could further drive bank stock prices upward.
See More
