CIT Group Target of Unusually Large Options Trading (NYSE:CIT)

CIT Group Inc. (NYSE:CIT) was the recipient of some unusual options trading activity on Wednesday. Stock investors bought 1,400 put options on the stock. This is an increase of approximately 1,208% compared to the average daily volume of 107 put options.

CIT traded up $0.43 during trading hours on Thursday, hitting $50.51. 53,862 shares of the company’s stock were exchanged, compared to its average volume of 634,996. CIT Group has a 1-year low of $35.50 and a 1-year high of $55.48. The stock has a market capitalization of $4.88 billion, a price-to-earnings ratio of 12.42, a PEG ratio of 1.04 and a beta of 1.50. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.18.

CIT Group (NYSE:CIT) last announced its earnings results on Tuesday, April 23rd. The financial services provider reported $1.18 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.09 by $0.09. CIT Group had a net margin of 14.23% and a return on equity of 8.58%. The business had revenue of $466.20 million during the quarter, compared to analysts’ expectations of $461.11 million. During the same quarter in the prior year, the company posted $0.69 earnings per share. The firm’s revenue was down 5.9% on a year-over-year basis. As a group, research analysts predict that CIT Group will post 4.86 earnings per share for the current fiscal year.

The firm also recently announced a quarterly dividend, which was paid on Friday, May 24th. Investors of record on Friday, May 10th were issued a dividend of $0.35 per share. This is a boost from CIT Group’s previous quarterly dividend of $0.25. The ex-dividend date of this dividend was Thursday, May 9th. This represents a $1.40 annualized dividend and a yield of 2.77%. CIT Group’s dividend payout ratio is presently 34.65%.

Institutional investors and hedge funds have recently made changes to their positions in the stock. Norges Bank acquired a new stake in shares of CIT Group during the 4th quarter worth about $79,790,000. New Mountain Vantage Advisers L.L.C. increased its stake in CIT Group by 79.6% during the 4th quarter. New Mountain Vantage Advisers L.L.C. now owns 3,732,784 shares of the financial services provider’s stock valued at $142,854,000 after purchasing an additional 1,653,858 shares in the last quarter. Lakewood Capital Management LP grew its stake in shares of CIT Group by 101.7% in the 4th quarter. Lakewood Capital Management LP now owns 2,409,870 shares of the financial services provider’s stock worth $92,226,000 after acquiring an additional 1,215,000 shares in the last quarter. Northern Trust Corp grew its stake in shares of CIT Group by 77.0% in the 4th quarter. Northern Trust Corp now owns 1,618,737 shares of the financial services provider’s stock worth $61,948,000 after acquiring an additional 704,217 shares in the last quarter. Finally, Wedge Capital Management L L P NC bought a new stake in shares of CIT Group in the 1st quarter worth $26,215,000.

CIT has been the subject of several recent analyst reports. TheStreet raised shares of CIT Group from a “c+” rating to a “b” rating in a research note on Monday, March 25th. UBS Group increased their price objective on shares of CIT Group from $55.00 to $60.00 and gave the stock a “buy” rating in a research report on Wednesday, April 24th. Citigroup increased their price objective on shares of CIT Group from $55.00 to $62.00 and gave the stock a “buy” rating in a research report on Wednesday, April 24th. Zacks Investment Research raised shares of CIT Group from a “sell” rating to a “hold” rating in a research report on Monday, April 22nd. Finally, ValuEngine raised shares of CIT Group from a “sell” rating to a “hold” rating in a research report on Saturday, April 13th. Seven equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. CIT Group currently has an average rating of “Hold” and a consensus price target of $55.26.

CIT Group Company Profile

CIT Group Inc operates as the holding company for CIT Bank, N.A. that provides banking and related services to commercial and individual customers. The company operates through Commercial Banking and Consumer Banking segments. The Commercial Banking segment offers lending, leasing, and other financial and advisory services primarily to small and middle-market companies; factoring, receivables management products, and secured supply chain financing; equipment leasing and secured financing to railroads and non-rail companies; equipment financing to small businesses.

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