Jan. 28, 2014, 12:05 AM
Jan. 27, 2014, 5:30 PM
Jan. 22, 2014, 8:43 AM
- With a 16.7% Tier 1 Capital ratio, CIT Group is among the most overcapitalized banks in the country which "provides a long runway for EPS growth," says analyst Eric Beardsley, starting the stock at Neutral with $55 price target. It also has "hidden" book value of up to another $19 per share from significant NOLs.
- The Neutral rating, nevertheless, reflects an expected below-average ROE of just 4-6% over the next few years, and a stock fairly valued at 13x 2014 estimated earnings.
Jan. 21, 2014, 6:23 PM
Dec. 23, 2013, 8:52 AM
- CIT Group announced the settlement of a tax dispute with Tyco International after Friday's close in which it will pay Tyco $60M, resulting in a $45M charge against earnings in Q4 of this year. It's a not insignificant amount considering CIT earned about $200M in Q3.
- While adjusting his estimates down, BTIG's Mark Palmer nevertheless, reiterates his Buy rating on the stock.
- SEC Form 8-K
Oct. 22, 2013, 8:16 AM
- Net income of $200M or $0.99 per share compares to loss of $299M a year ago. Refinancing of the company's $21.4B in long-term debt helped, with interest costs falling 70% to $233.8M.
- Total assets of $46.2B gained $2.6B from a year ago, and net finance revenue of $357M compares to a loss of $129M last year. Provision for credit losses of $16M vs. $15M in Q2, and about zero a year ago.
- Adjusted operating expenses of $229M were little-changed from last year.
- Previous: Dividend reinstated at quarterly rate of $0.10 per share.
- Conference call is underway.
- Q3 results, press release.
- CIT +3% premarket.
Oct. 22, 2013, 6:34 AM
Oct. 22, 2013, 12:05 AM
Oct. 21, 2013, 5:30 PM
Oct. 21, 2013, 4:59 PM
Oct. 21, 2013, 4:50 PM
- There's more in the way of capital returns at CIT Group (CIT), with the company declaring a $0.10 per share quarterly dividend payable on Nov. 29 to holders of record on Nov.15. It's an annualized yield of less than 1%.
- This move follows the $200M share repurchase plan announced in May after the Fed gave the green light.
- Shares +0.1% AH.
- Press release.
Sep. 30, 2013, 7:47 AM
- CIT Group gets its 2nd Buy rating in a week, with Janney upgrading from Hold, and as well raising its price target to $58 from $52.
- Jefferies gave the stock a ringing upgrade last week - most interesting for its bullishness on the operations of the company. Others seemed focused on CIT's potential as a buyout target.
Sep. 24, 2013, 7:42 AM
- Calling CIT Group "one of the most compelling names in our coverage universe," analyst Daniel Furtado upgrades to Buy with $65 price target (vs. $52 previous).
- "The company is well-positioned for book value and multiple expansion," he says, expecting larger capital returns in the near future. Use of the DTA allowance in 2014 should provide a boost to book value.
Sep. 17, 2013, 11:33 AM
- CIT Group keeps the deals moving as it awaits a phone call on a buyout, acting as lead financier on a $100M secured senior credit facility for AWCC Holdings - a subsidiary of American Wind Capital - to acquire a portfolio of land leases and lease royalties from solar projects across the country.
- Press release.
Sep. 16, 2013, 10:21 AM
- Hopeful or desperation? Not willing to comment on any acquisition activity, CIT Group (CIT +0.4%) CEO John Thain does let it be known on CNBC that his phone number isn't unlisted.
- First loved by value-seeking fans as a turnaround story, CIT's bull case now mostly rests upon a buyout offer for the company. It's been an open secret for many months that CIT is on the block.
- BTIG here.
- Sterne Agee here.
Aug. 29, 2013, 10:38 AM
- Regional banks are thought to be big beneficiaries of higher rates, but CIT Group (CIT +0.5%) may be poised to gain even more, says BTIG's Mark Palmer, who rates the shares a Buy. CIT is up 13.7% since the Treasury market rolled over in early May - nice, but lagging many of the regional lenders.
- "We're asset sensitive," CEO John Thain has said. "Our assets would reprice faster than our liabilities."
- CIT's underperformance, says Palmer, can be traced to the company having no natural equity comps and that it is followed by specialty finance analysts instead of those who cover regional banks.
- Palmer continues to see CIT as an acquisition target and a natural fit for capital-rich Canadian lenders looking to boost its U.S. presence.
- The Canadian banks all reported earnings this week and either boosted dividends or share repurchase programs.
CIT vs. ETF Alternatives
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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