CIT Group Inc.NYSE
Fri, Nov. 18, 8:25 AM
- Analyst Jame Fotheringham takes advantage of the big post-election rally in Wells Fargo (NYSE:WFC), CIT Group (NYSE:CIT) and World Acceptance (NASDAQ:WRLD) to downgrade each to Underperform from Market Perform. Regional Management (NYSE:RM) is downgraded as well, to Market Perform from Outperform.
- He notes there's still value in names like Capital One (NYSE:COF), Morgan Stanley (NYSE:MS), and Ally Financial (NYSE:ALLY), even though they too have had strong moves.
Tue, Oct. 25, 9:33 AM
- It was the rail leasing unit that was mostly behind the earnings miss, says BTIG's Mark Palmer, with ongoing weakness in the energy and steel industries resulting in lower lease rates. Palmer notes management has been steadfast in its determination not to sell the rail leasing business.
- Among management goals is a ROTCE of 10%, and in that regard Q3 was a step back, with ROTCE falling to 7.45% from 8.26% a quarter earlier.
- Palmer reiterates his Buy rating, but cuts the price target to $45 from $52. CIT is down 1.4% to $36 in early action.
- Previously: CIT misses by $0.06, misses on revenue (Oct. 25)
Tue, Oct. 25, 6:31 AM
Mon, Oct. 24, 5:30 PM
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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%