Tue, Nov. 3, 8:51 AM
Mon, Nov. 2, 5:30 PM
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Thu, Oct. 22, 9:46 AM
- The company last night announced the coming exit of CEO John Thain along with further steps to transition to a commercial bank model.
- A fan of the moves, BTIG's Mark Palmer reiterates his Buy rating and $56 price target. John Thain's job is done, says Palmer, noting he was brought in due to his ability to fix teetering businesses. Now's the time for an experienced commercial bank leader, and former RBS Citizens Financial boss Ellen Alemany is a good choice (Thain will remain chairman).
- Macquarie upgrades to Outperform with $65 price target.
- CIT +12.6% to $44.89.
- Previously: CIT Group higher as Thain sets retirement; sales of units planned (Oct. 21)
Wed, Oct. 21, 4:30 PM
- CIT Group (NYSE:CIT) CEO John Thain will retire on March 31, but remain board chairman. He'll be succeeded by board member Ellen Alemany.
- Vice chairman Steven Mnuchin will step down from management on March 31, but remain on the board.
- Corporate Controller Carol Hayles will become CFO, effective Nov. 1.
- Alemany has been on the board since January 2014, and is the former head of RBS Americas, and also served as chairman and CEO of RBS's Citizens Financial Group.
- Designed to move forward the company's transition to a commercial bank, CIT is exploring strategic alternatives for its $10B commercial air business, and is putting on the block its CIT Canada and CIT China businesses.
- Shares +5.1% after hours
Wed, Oct. 21, 8:34 AM
Mon, Oct. 19, 4:42 PM
Tue, Oct. 13, 2:36 PM
- With a sluggish economy and low rates making for a challenging banking environment, lenders are subject to growing ranks of shareholder activists, reports SNL Financial.
- A bank with an ROE in the 5-6% range when the cost of capital is closer to 9% or 10% is going to make for a ripe target, says RBC's Gerard Cassidy. And those activists have an ally in proxy advisory firms which have recently been in favor of the shareholders instead of management teams, says Sandler O'Neill's Emmett Daly. Daly notes the pending sale of Metro Bancorp (NASDAQ:METR) to F.N.B. Corp. (NYSE:FNB) - Metro went from having no activists to a handful. "I don't think anyone is too strong," says Daly.
- Other campaigns include Trian and Bank of New York Mellon (NYSE:BK) and State Street (NYSE:STT), Greenlight and Citizens Financial (NYSE:CFG) and CIT Group (NYSE:CIT), and Basswood and First California (NASDAQ:FCAL), Bank of California (NYSE:BANC), Hudson Valley Holding (NYSE:HVB), Synovus (NYSE:SNV), Astoria (NYSE:AF), and the above-mentioned Metro.
Wed, Aug. 26, 12:34 PM
- With a focus on special situations, the new credit platform - Strategic Credit Partners - will have a target size of $500M.
- David Bonderman's TPG manages about $75B in assets, and its Special Situations Partners has about $12B in AUM.
- “This joint venture will further advance our efforts to grow our commercial lending franchise," says Jim Hudak, president of CIT Corporate Finance.
- Source: Press Release
Tue, Jul. 28, 8:30 AM
- Q2 net income of $115M or $0.66 per share vs. $247M and $1.29 one year ago.
- Net finance revenue of $343M vs. $361M a year ago. Average earning assets of $34.1B vs. $33.2B. Net finance revenue as a percent of average earning assets of 4.02% up 33 basis points.
- Operating expenses of $235M vs. $225M.
- Non-accrual loans of $198M or 1.01% of finance receivables vs. 0.94% a quarter ago, 1.02% one year ago.
- CET1 ratio of 14.4%. Tangible book value per share of $47.51 up from $46.89 a quarter ago, $44.16 one year ago. 1.3M shares repurchased during quarter at an average price of $45.87 each.
- The OneWest purchase is expected to close on August 3.
- Conference call is underway.
- Previously: CIT EPS in-line, misses on revenue (July 28)
- CIT flat premarket
Tue, Jul. 28, 6:33 AM
Mon, Jul. 27, 5:30 PM
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Fri, Jul. 24, 3:31 PM
- Goldman's (GS -1.8%) Q2 results confirmed the team's expectation of positive revisions to 2016 consensus EPS. Zions (ZION -0.7%) has "multiple catalysts" to reach improve profitability goals and EPS growth over the next three years.
- Guggenheim's four key investment themes: 1) Names levered to improving M&A, with Goldman being the best idea, followed by Morgan Stanley (MS -1.3%); 2) Restructuring stories, with Zions the best idea, but First Horizon (FHN -1%), Ally Financial (ALLY -1.8%), and BofA (BAC -1.6%) also worth looking at; 3) Idiosyncratic growth stories like MasterCard (MA +0.7%), Visa (V +4.5%), Synchrony Financial (SYF -2.4%), and Signature Bank (SBNY -0.8%); 4) Names with a distinct M&A catalyst in the regionals group like BB&T (BBT -1.5%), CIT Group (CIT -1.6%), and Springleaf (LEAF -1.4%).
- Mixed results from credit card companies affirm the team's preference for SYF, but the risk/reward at AmEx (AXP -1.4%) is improving. AmEx, CapOne (COF -13%), and Discover (DFS -2.7%) results show the boosted competition they face form the banks, which is slowing growth, and lifting marketing and rewards costs.
- Source: Barron's
- Previously: Capital One tumbles after earnings miss and trio of downgrades (July 24)
Wed, Jul. 22, 5:17 PM
Wed, Jul. 22, 11:05 AM
- The OneWest purchase is expected to be 20% accretive to CIT Group's (CIT +0.1%) EPS in 2016 while generating an IRR of 15%, says BTIG's Mark Palmer, reiterating a Buy rating and $55 price target after CIT was given the regulatory go-ahead for the acquisition.
- CIT will report earnings on July 28, and Palmer's expectation is for just $0.61 in EPS versus consensus at $0.65.
- In addition to more color on the OneWest deal, Palmer expects to hear about the potential impact of GE Capital's exit from businesses in which it competes with CIT.
- Previously: CIT Group gains after winning regulatory green light for OneWest purchase (July 21)
Tue, Jul. 21, 3:39 PM
- The OCC grants conditional approval for CIT Group's (CIT +2.7%) purchase of OneWest Bank.
- The two agreed to the $3.4B cash and stock deal roughly one year ago to the day, and the acquisition will give CIT access to OneWest's sizable deposit base ($15B in deposits as of the date of the agreement).
- Previous coverage
Tue, Apr. 28, 12:28 PM
- This morning's weak Q1 results - EPS of $0.59 trailed Street estimates by $0.12 - shows just how much CIT Group (CIT -5.2%) has riding on obtaining regulatory approval for the OneWest purchase, says BTIG, reiterating its Buy rating and $55 price target.
- The team notes CEO John Thain on the earnings call as saying he expects the closing to occur mid-year. The company expects the purchase to be accretive by 20% to EPS in 2016, as reduced funding costs and operational efficiencies allow an IRR of 15%.
- BTIG notes the stock now trades at a discount to tangible book value of $46.89 per share. The $55 price target is based on 1.2x estimated 2016 TBV, discounted at 8%.
- Previously: CIT Group launches next buyback plan (April 28)
CIT Group Inc provides financing, leasing and advisory services principally to middle market companies in industries primarily in North America, and equipment financing and leasing solutions to the transportation industry worldwide.
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