CIT Group Inc.NYSE
Tue, Oct. 18, 4:47 PM
Tue, Oct. 11, 9:41 AM
- CIT Group (NYSE:CIT) is up 1% in early action as BAML upgrades to Neutral from Underperform in the wake of last week's sale of the company's air leasing unit for as much as $3.3B.
- Bulls on CIT say the sale will allow the return of a massive amount of capital to shareholders, and result in a simpler, more focused middle-market lender.
Fri, Oct. 7, 2:05 PM
- The markets thus far are mostly yawning in response to last night's announcement by CIT Group (CIT +1.2%) of a sale of its air leasing unit for up to $3.3B.
- The sale - expected to close by the end of Q1 2017 - will allow CIT to return up to $3.3B, or more than a third of its tangible common equity, to shareholders through buybacks and special dividends, says Mark Palmer. The company received a "non objection" of its capital return plan from the Fed, which last summer rejected the initial plan.
- The deal also moves CIT closer to its goal of transforming itself into a simpler, U.S.-focused middle-market lender that ought to earn a better valuation than the current 0.66x tangible book value, he says.
- Palmer reiterates his Buy rating and $52 price target (1x tangible book), or more than 40% upside.
Thu, Oct. 6, 5:58 PM
- CIT Group (NYSE:CIT) is up 5.8% after hours, having sealed a definitive deal to sell its CIT Commercial Air to Avolon Holdings (NYSE:AVOL), for $10B.
- That marks a 6.7% premium to net assets, and makes Avolon into one of the top five aircraft lessors in the world. Expectations had Avolon buying aircraft leasing assets for between $3B and $4B.
- Avolon gets the business' operations, forward order commitments and (as of June 30) assets of $11.1B and liabilities of $1.7B.
- The deal's expected to close by the end of Q1 2017, and CIT says it has "non-objection" from the New York Fed for its plan to return $2.975B of proceeds from the sale to its shareholders, as well as return $325M in common equity (contingent upon the issuance of a similar amount of Tier 1 qualifying preferred stock) and pay $64M a year in dividends after the sale's done.
- Conference call link
Tue, Sep. 6, 7:18 AM
- Avolon (NYSE:AVOL) is nearing a deal to buy the aircraft leasing assets of CIT Group (NYSE:CIT) for between $3B-$4B, Reuters reports.
- The purchase would turn Avolon into one of the world's top five lessors, building on a series of acquisitions that HNA Group has completed over the past two years. An announcement could come as early as this week.
Wed, Aug. 17, 10:28 AM
- The WSJ yesterday reported initial bids for the operation exceeded $4B versus expectations for a sale to take place between $3B and $4B. The report also cited a source as saying Aircastle (NYSE:AYR) - the world's 5th-largest commercial air leasing company - had joined the bidding.
- A bullish Mark Palmer from BTIG reminds CIT Group (CIT +2.9%) management has said the sale of the commercial air unit would allow the company buy back 40% of its stock, while significantly cutting long-term debt.
- He reiterates his Buy rating and $52 price target, suggesting nearly 45% upside from the current level.
Thu, Jul. 28, 12:59 PM
- Q2 EPS from continuing operations of $0.90 blew through estimates for $0.78, with a decline in credit loss provisions more than offsetting flattish asset growth, writes BTIG's Mark Palmer.
- Alongside, the company took an after-tax charge of $0.80 per share relating to an increased interest curtailment reserve for Financial Freedom - the reverse mortgage servicing business purchased as part of the OneWest acquisition.
- The catalyst the stock needs, says Palmer, would be the separation (whether by spinoff or sale) of the Commercial Air unit. This would enable CIT to buy back 40% of its shares and cut its long-term debt to 20% of funding (from 30%).
- Palmer reiterates his Buy rating and $52 price target.
- Shares +0.65% to $34.59
Thu, Jul. 28, 6:34 AM
Wed, Jul. 27, 5:30 PM
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Tue, Jul. 19, 2:35 PM
Wed, Jun. 29, 4:34 PM
Tue, May 31, 12:03 PM
- "The strong line-up of Chinese and Japanese suitors in the auction underscores the growing importance of cashed-up Asian lessors who are investing billions of dollars in a sector that offers stable, long-term and dollar-based revenue," reports Reuters.
- The operation is expected to fetch something in the area of $3B-$4B. First round bids are due in June., and some potential bidders will be given access to detailed financials in the next few weeks, according to the report.
- CIT +0.8%
Fri, Apr. 29, 1:53 PM
- CIT (NYSE:CIT) declares $0.15/share quarterly dividend, in line with previous.
- Forward yield 1.75%
- Payable May 27; for shareholders of record May 13; ex-div May 11.
Thu, Apr. 28, 1:33 PM
- Q1 earnings from continuing operations of $0.75 rose from $0.59 one year ago, but missed consensus estimates by a penny. At issue were provisions, which rose to $99M from $58M in Q4 and $35M a year ago (thank energy).
- Nevertheless, says BTIG's Mark Palmer (results missed his estimate by $0.03), the company reported commercial loan growth of 2% during a not-so-good period for middle-market lending. Plus, there's valuation, with the firm now trading for just 0.72x tangible book value per share of $48.39 (up from $46.89 a year ago).
- A catalyst is needed, says Palmer, and that could be the announcement of a sale or spin of the Commercial Air unit ... timing uncertain.
- He reiterates his Buy rating and $52 price target. CIT +0.4% to $34.68.
Thu, Apr. 28, 6:36 AM
- CIT (NYSE:CIT): Q1 EPS of $0.75 misses by $0.01.
- Revenue of $653.8M (+54.3% Y/Y) beats by $35.05M.
Wed, Apr. 27, 5:30 PM
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