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 note issued to 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.”
Several other equities analysts have also recently commented on the stock. JMP Securities reaffirmed a “buy” rating on shares of CIT Group in a research note on Monday, October 10th. Bank of America Corp. raised shares of CIT Group from an “underperform” rating to a “neutral” rating and set a $39.00 price target for the company in a research note on Tuesday, October 11th. BMO Capital Markets reissued a “hold” rating on shares of CIT Group in a research note on Monday, October 10th. BTIG Research set a $52.00 target price on CIT Group and gave the company a “buy” rating in a research note on Saturday, October 8th. Finally, Stifel Nicolaus downgraded CIT Group from a “buy” rating to a “hold” rating and lifted their target price for the company from $40.00 to $41.00 in a research note on Friday, October 7th. Twelve investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus target price of $42.81.
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CIT Group (NYSE:CIT) opened at 36.18 on Monday. CIT Group has a 1-year low of $25.19 and a 1-year high of $46.51. The stock’s 50 day moving average is $35.97 and its 200 day moving average is $33.85. The firm has a market capitalization of $7.31 billion, a price-to-earnings ratio of 7.22 and a beta of 1.52.
CIT Group (NYSE:CIT) last issued its quarterly earnings data on Thursday, July 28th. The financial services provider reported $0.90 EPS for the quarter, beating the consensus estimate of $0.77 by $0.13. The company earned $645.10 million during the quarter, compared to analysts’ expectations of $620.33 million. CIT Group had a net margin of 22.45% and a return on equity of 5.54%. CIT Group’s revenue for the quarter was up 58.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.66 earnings per share. Analysts predict that CIT Group will post $2.33 EPS for the current fiscal year.
Several hedge funds have recently modified their holdings of the stock. Seven Eight Capital LLC raised its stake in shares of CIT Group by 249.0% in the first quarter. Seven Eight Capital LLC now owns 13,456 shares of the financial services provider’s stock worth $418,000 after buying an additional 9,600 shares in the last quarter. Kingstown Capital Management L.P. bought a new stake in shares of CIT Group during the first quarter worth $62,060,000. Birch Run Capital Advisors LP raised its stake in shares of CIT Group by 290.7% in the first quarter. Birch Run Capital Advisors LP now owns 293,000 shares of the financial services provider’s stock worth $9,092,000 after buying an additional 218,000 shares in the last quarter. Legal & General Group Plc raised its stake in shares of CIT Group by 0.3% in the first quarter. Legal & General Group Plc now owns 828,832 shares of the financial services provider’s stock worth $25,720,000 after buying an additional 2,864 shares in the last quarter. Finally, Price Michael F raised its stake in shares of CIT Group by 11.8% in the first quarter. Price Michael F now owns 520,000 shares of the financial services provider’s stock worth $16,136,000 after buying an additional 55,000 shares in the last quarter. 98.51% of the stock is owned by institutional investors and hedge funds.
CIT Group Company Profile
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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