CIT Group Inc. (CIT) Lowered to “Hold” at Zacks Investment Research
CIT Group Inc. (NYSE:CIT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.
According to Zacks, “Estimates have been relatively stable ahead of CIT Group’s third-quarter 2016 earnings release. The company announced the sale of its aircraft leasing business with an aim to become a leading national middle-market bank. Further, the company's amended capital plan to buy back $2.975 million worth shares will enhance investors' confidence in the stock. In addition, the company has been aggressively restructuring its balance sheet which continues to aid net finance margin growth. However, deteriorating asset quality, due to persistent increase in provision for credit losses, remains a major concern. Further, mounting costs and stringent regulations makes us apprehensive.”
A number of other analysts have also weighed in on CIT. BTIG Research set a $52.00 price objective on shares of CIT Group and gave the stock a “buy” rating in a research note on Saturday, October 8th. Barclays PLC cut their price objective on shares of CIT Group from $37.00 to $35.00 and set an “equal weight” rating on the stock in a research note on Friday, July 29th. BMO Capital Markets reiterated a “hold” rating on shares of CIT Group in a research note on Monday, October 10th. Nomura raised their price target on shares of CIT Group from $33.00 to $35.00 and gave the company a “neutral” rating in a research report on Friday, July 29th. Finally, JMP Securities restated a “buy” rating on shares of CIT Group in a research report on Monday, October 10th. Twelve equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus target price of $42.81.
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Shares of CIT Group (NYSE:CIT) traded up 0.03% on Monday, hitting $36.19. 84,689 shares of the stock traded hands. The company has a market cap of $7.31 billion, a PE ratio of 7.22 and a beta of 1.52. The stock has a 50 day moving average of $35.97 and a 200 day moving average of $33.85. CIT Group has a one year low of $25.19 and a one year high of $46.51.
CIT Group (NYSE:CIT) last released its quarterly earnings data on Thursday, July 28th. The financial services provider reported $0.90 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.77 by $0.13. The firm had revenue of $645.10 million for the quarter, compared to analyst estimates of $620.33 million. CIT Group had a net margin of 22.45% and a return on equity of 5.54%. The business’s quarterly revenue was up 58.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.66 earnings per share. Equities analysts anticipate that CIT Group will post $2.33 earnings per share for the current year.
A number of large investors have recently added to or reduced their stakes in CIT. Vanguard Group Inc. boosted its stake in CIT Group by 4.0% in the second quarter. Vanguard Group Inc. now owns 14,092,961 shares of the financial services provider’s stock valued at $449,706,000 after buying an additional 539,701 shares during the last quarter. State Street Corp boosted its stake in shares of CIT Group by 13.7% in the second quarter. State Street Corp now owns 7,010,683 shares of the financial services provider’s stock worth $223,717,000 after buying an additional 847,112 shares in the last quarter. Capital World Investors bought a new stake in shares of CIT Group during the second quarter worth $203,905,000. BlackRock Institutional Trust Company N.A. boosted its stake in shares of CIT Group by 5.4% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 4,400,060 shares of the financial services provider’s stock worth $140,406,000 after buying an additional 223,454 shares in the last quarter. Finally, Canada Pension Plan Investment Board boosted its stake in shares of CIT Group by 27,895.1% in the second quarter. Canada Pension Plan Investment Board now owns 4,132,920 shares of the financial services provider’s stock worth $131,881,000 after buying an additional 4,118,157 shares in the last quarter. Hedge funds and other institutional investors own 98.51% of the company’s stock.
About CIT Group
CIT Group Inc (CIT) is a bank holding company. The Company, together with its subsidiaries, provides financing, leasing and advisory services to middle market companies in a range of industries in North America, and equipment financing and leasing solutions to the transportation industry around the world.
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