Citigroup Stock Rises 67% in Past Year, Still Trading at Discount
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2026
0mins
Source: Fool
- Stock Performance: Citigroup's stock has risen over 67% in the past year, driven by CEO Jane Fraser's strategic restructuring and profitability improvements, indicating a gradual recovery in a competitive market.
- Strategic Restructuring: Since taking over in 2021, Fraser has divested unprofitable divisions and increased investment in core businesses, which has enhanced overall return rates and bolstered market confidence.
- M&A Opportunities: With an acceleration in banking sector mergers and acquisitions, investors should consider bank stocks likely to be acquired, a strategy that not only mitigates market risk but also offers potential premium returns, especially in the current undervalued environment.
- Valuation Appeal: BankUnited, as a potential acquisition target, trades at only 114% of its tangible book value, making it an attractive choice for larger banks with higher stock currencies, which could lead to immediate value accretion.
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Analyst Views on BKU
Wall Street analysts forecast BKU stock price to fall
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 48.310
Low
42.00
Averages
47.50
High
55.00
Current: 48.310
Low
42.00
Averages
47.50
High
55.00
About BKU
BankUnited, Inc. is a bank holding company of BankUnited (the Bank). The Bank provides a full range of commercial lending and both commercial and consumer deposit services through banking centers located in Florida, the New York metropolitan area and Dallas, Texas, and a comprehensive suite of wholesale products to customers through an Atlanta office focused on the Southeast region. The Bank’s lending products include commercial loans, commercial real estate loans, residential mortgages and other consumer loans. It offers traditional deposit products including commercial and consumer checking accounts, money market deposit accounts, savings accounts and certificates of deposit with a variety of terms and rates, as well as a robust suite of treasury, payments and cash management services. The Bank provides certain commercial lending and deposit products through national platforms and certain consumer deposit products through an online channel.
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.
BankUnited Reports Strong Q4 Earnings, Announces $200 Million Buyback
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- Sales Growth: The company achieved quarterly sales of $288.203 million, exceeding the analyst estimate of $280.052 million, reflecting the successful execution of its organic growth strategy and boosting investor confidence.
- Increased Shareholder Returns: Chairman Rajinder Singh announced an additional $200 million stock buyback authorization and a $0.02 increase in the next quarterly dividend, demonstrating the company's confidence in future growth and commitment to shareholders.
- Analyst Target Upgrades: Following the earnings announcement, several analysts raised their price targets for BankUnited, with Keefe, Bruyette & Woods increasing theirs from $42 to $55, indicating optimistic market expectations for the company's future performance.
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- Significant Deposit Growth: NIDDA grew by $485 million in the quarter and $1.5 billion for the year, showcasing the company's success in attracting deposits, which further solidifies its funding base and liquidity.
- Capital Buyback Plan: The Board authorized an additional $200 million stock buyback plan, adding to the previously announced $50 million, resulting in a total buyback capacity of approximately $250 million, demonstrating the company's confidence in its stock value and commitment to shareholder returns.
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- Security Framework Established: The agreement with NATO's Secretary General Mark Rutte on a future deal regarding Greenland signifies a strategic shift in U.S. interests in the Arctic region.
- Negotiation Team Formation: Trump appointed Vice President JD Vance, Secretary of State Marco Rubio, and Special Envoy Steve Witkoff to lead negotiations, highlighting the administration's commitment to Greenland.
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- Adjusted Earnings: The adjusted net income stood at $72.0 million, or $0.94 per share, indicating stability in the company's core operations despite external challenges.
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See More
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See More
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See More
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- Earnings Beat: BankUnited reported Q4 earnings of $0.94 per share, surpassing the analyst consensus of $0.88, indicating strong financial performance and reinforcing its market position.
- Sales Growth: The company achieved quarterly sales of $288.203 million, exceeding the analyst estimate of $280.052 million, reflecting the successful execution of its organic growth strategy and boosting investor confidence.
- Increased Shareholder Returns: Chairman Rajinder Singh announced an additional $200 million stock buyback authorization and a $0.02 increase in the next quarterly dividend, demonstrating the company's confidence in future growth and commitment to shareholders.
- Analyst Target Upgrades: Following the earnings announcement, several analysts raised their price targets for BankUnited, with Keefe, Bruyette & Woods increasing theirs from $42 to $55, indicating optimistic market expectations for the company's future performance.
See More
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- Strong Earnings Performance: BankUnited reported a net income of $69.3 million for Q4 2025, translating to an EPS of $0.90 and an adjusted EPS of $0.94, indicating a significant enhancement in profitability and reflecting the company's strengthened competitive position in the market.
- Significant Deposit Growth: NIDDA grew by $485 million in the quarter and $1.5 billion for the year, showcasing the company's success in attracting deposits, which further solidifies its funding base and liquidity.
- Capital Buyback Plan: The Board authorized an additional $200 million stock buyback plan, adding to the previously announced $50 million, resulting in a total buyback capacity of approximately $250 million, demonstrating the company's confidence in its stock value and commitment to shareholder returns.
- Optimistic Future Outlook: Management anticipates a 6% growth in core loans and a continued 12% growth in NIDDA for 2026, with revenue expected to rise by 8%, indicating a positive outlook on the company's growth potential and market opportunities ahead.
See More
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- Tariff Cancellation: Trump announced the cancellation of tariffs scheduled to take effect on February 1, 2026, following a productive meeting with NATO Secretary General, indicating a focus on Arctic security.
- Security Framework Established: The agreement with NATO's Secretary General Mark Rutte on a future deal regarding Greenland signifies a strategic shift in U.S. interests in the Arctic region.
- Negotiation Team Formation: Trump appointed Vice President JD Vance, Secretary of State Marco Rubio, and Special Envoy Steve Witkoff to lead negotiations, highlighting the administration's commitment to Greenland.
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- Adjusted Earnings: The adjusted net income stood at $72.0 million, or $0.94 per share, indicating stability in the company's core operations despite external challenges.
- Interest Income Decline: Total interest income decreased to $442.40 million from $467.99 million last year, suggesting pressure on bank profitability due to changing interest rate environments, which may affect future financial performance.
- Increased Shareholder Returns: Chairman and CEO Rajinder Singh announced an additional stock buyback authorization of $200 million and a $0.02 increase in the next quarterly dividend, demonstrating confidence in future profitability and commitment to shareholders.
See More
BankUnited (BKU) Reports Q4 Non-GAAP EPS of $0.94, Beating Estimates
- Earnings Highlights: BankUnited's Q4 non-GAAP EPS of $0.94 exceeds expectations by $0.05, indicating sustained profitability despite cautious market sentiment regarding future upgrades.
- Revenue Growth: The company reported Q4 revenue of $288.2 million, a 9.0% year-over-year increase, surpassing estimates by $8.12 million, demonstrating robust growth in a competitive landscape.
- Executive Appointment: BankUnited appointed James Mackey as CFO, aiming to enhance financial management and strategic planning to support long-term development goals.
- Rating Change: Despite strong performance, Jefferies upgraded BankUnited's rating from Hold to Buy, reflecting market recognition of its future growth potential.
See More
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- Strong Financial Performance: BankUnited's net income increased by 15% in 2025 compared to 2024, demonstrating successful execution of its organic growth strategy, which enhances investor confidence and boosts shareholder returns.
- Loan Portfolio Growth: As of December 31, 2025, total loans grew by $571 million, with commercial real estate and industrial loans increasing by $276 million and $474 million respectively, reflecting robust performance across core business lines and further solidifying market position.
- Increased Capital Returns: The company announced an additional $200 million stock buyback authorization and raised the next quarterly dividend by $0.02, indicating confidence in future profitability while attracting more investor interest.
- Improved Asset Quality: Despite a decline in non-performing loans, the net provision for credit losses was $25.6 million in Q4 2025, significantly up from the previous quarter, showcasing the company's proactive risk management and enhancing capital adequacy.
See More
