Zacks Investment Research Upgrades CIT Group Inc (DEL) (NYSE:CIT) to “Hold”

Zacks Investment Research upgraded shares of CIT Group Inc (DEL) (NYSE:CIT) from a sell rating to a hold rating in a report published on Friday, July 14th.

According to Zacks, “CIT Group’s shares have significantly outperformed the Zacks categorized Miscellaneous Service industry, over the last six months. The company’s efforts in becoming a leading regional commercial banking institution through restructuring and streamlining are commendable. With this aim, in June, the company inked a deal to sell its European Rail business. Also, its enhanced capital deployment activities reflect strong balance sheet position. However, operating expenses and worsening asset quality remain major concerns for the company. Further, sluggish growth in the industries where the company provides finance will likely dent its performance in the near term.”

A number of other brokerages have also commented on CIT. BidaskClub upgraded shares of CIT Group Inc (DEL) from a buy rating to a strong-buy rating in a research note on Tuesday, June 20th. Morgan Stanley initiated coverage on shares of CIT Group Inc (DEL) in a research note on Monday, March 27th. They set an equal weight rating and a $45.00 price target for the company. Credit Suisse Group restated a hold rating and set a $48.00 price target on shares of CIT Group Inc (DEL) in a research note on Sunday, July 2nd. BMO Capital Markets restated a sell rating and set a $30.00 price target on shares of CIT Group Inc (DEL) in a research note on Wednesday, April 26th. Finally, CIBC restated an outperform rating on shares of CIT Group Inc (DEL) in a research note on Tuesday, July 11th. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and seven have assigned a buy rating to the company. The stock has an average rating of Hold and a consensus target price of $45.96.

CIT Group Inc (CIT) traded down 0.04% on Friday, hitting $47.48. 925,328 shares of the stock traded hands. CIT Group Inc has a 1-year low of $33.49 and a 1-year high of $50.40. The stock has a 50-day moving average price of $48.56 and a 200 day moving average price of $44.96. The company’s market cap is $6.43 billion.

CIT Group Inc (DEL) (NYSE:CIT) last announced its quarterly earnings results on Tuesday, July 25th. The financial services provider reported $0.68 EPS for the quarter, beating the Zacks’ consensus estimate of $0.60 by $0.08. The business had revenue of $605 million during the quarter, compared to analyst estimates of $500.05 million. CIT Group Inc (DEL) had a negative net margin of 20.50% and a positive return on equity of 5.19%. CIT Group Inc (DEL)’s quarterly revenue was down 6.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.07 EPS. On average, analysts anticipate that CIT Group Inc will post $2.77 EPS for the current fiscal year.

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The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 25th. Shareholders of record on Friday, August 11th will be issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 1.26%. The ex-dividend date of this dividend is Wednesday, August 9th. CIT Group Inc (DEL)’s dividend payout ratio is -18.02%.

CIT Group Inc (DEL) declared that its board has initiated a share buyback program on Thursday, April 27th that permits the company to buyback $2.75 billion in outstanding shares. This buyback authorization permits the financial services provider to repurchase up to 29.5% of its shares through a dutch auction. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

In related news, EVP Robert Rowe sold 9,244 shares of the business’s stock in a transaction dated Tuesday, May 30th. The shares were sold at an average price of $45.58, for a total value of $421,341.52. Following the transaction, the executive vice president now directly owns 47,286 shares of the company’s stock, valued at approximately $2,155,295.88. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Edward K. Sperling sold 4,480 shares of the business’s stock in a transaction dated Friday, May 26th. The stock was sold at an average price of $45.76, for a total transaction of $205,004.80. Following the completion of the transaction, the executive vice president now directly owns 10,562 shares in the company, valued at $483,317.12. The disclosure for this sale can be found here. Insiders sold a total of 15,974 shares of company stock worth $726,471 over the last three months. 0.47% of the stock is owned by insiders.

Several institutional investors have recently modified their holdings of CIT. State Board of Administration of Florida Retirement System increased its position in shares of CIT Group Inc (DEL) by 2.9% in the second quarter. State Board of Administration of Florida Retirement System now owns 276,483 shares of the financial services provider’s stock worth $13,465,000 after buying an additional 7,819 shares during the period. Bar Harbor Trust Services increased its position in shares of CIT Group Inc (DEL) by 0.5% in the second quarter. Bar Harbor Trust Services now owns 148,067 shares of the financial services provider’s stock worth $7,211,000 after buying an additional 740 shares during the period. SG Americas Securities LLC increased its position in shares of CIT Group Inc (DEL) by 103.5% in the second quarter. SG Americas Securities LLC now owns 5,437 shares of the financial services provider’s stock worth $265,000 after buying an additional 2,765 shares during the period. Canada Pension Plan Investment Board increased its position in shares of CIT Group Inc (DEL) by 35.5% in the second quarter. Canada Pension Plan Investment Board now owns 243,220 shares of the financial services provider’s stock worth $11,845,000 after buying an additional 63,677 shares during the period. Finally, Korea Investment CORP bought a new position in shares of CIT Group Inc (DEL) during the second quarter worth $122,000. 99.84% of the stock is currently owned by institutional investors.

CIT Group Inc (DEL) Company Profile

CIT Group Inc (CIT) is a bank holding company (BHC) and a financial holding company (FHC). The Company, together with its subsidiaries, provides financing, leasing and advisory services to middle market companies in a range of industries in North America. The Company’s segments include Commercial Banking, Consumer Banking, Non-Strategic Portfolios, and Corporate and Other.

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