Investors Purchase High Volume of CIT Group Call Options (CIT)

CIT Group Inc. (NYSE:CIT) was the recipient of unusually large options trading activity on Wednesday. Traders acquired 1,753 call options on the stock. This represents an increase of 3,406% compared to the typical daily volume of 50 call options.

Shares of NYSE:CIT traded up $0.48 during trading on Friday, reaching $46.67. 491,365 shares of the company traded hands, compared to its average volume of 987,045. The firm has a market capitalization of $4.91 billion, a P/E ratio of 11.55, a price-to-earnings-growth ratio of 0.95 and a beta of 1.37. CIT Group has a 1-year low of $35.50 and a 1-year high of $56.14. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 1.45.

CIT Group (NYSE:CIT) last issued its earnings results on Tuesday, January 29th. The financial services provider reported $1.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.10 by $0.11. The company had revenue of $421.00 million during the quarter, compared to analyst estimates of $507.00 million. CIT Group had a net margin of 13.66% and a return on equity of 7.58%. During the same quarter last year, the business posted $0.99 EPS. Equities research analysts expect that CIT Group will post 4.89 earnings per share for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Friday, February 22nd. Shareholders of record on Friday, February 8th will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.14%. The ex-dividend date of this dividend is Thursday, February 7th. CIT Group’s dividend payout ratio (DPR) is currently 24.75%.

Several equities analysts have weighed in on CIT shares. Zacks Investment Research cut shares of CIT Group from a “hold” rating to a “sell” rating in a research report on Wednesday, October 10th. ValuEngine cut shares of CIT Group from a “hold” rating to a “sell” rating in a research report on Monday, October 22nd. BMO Capital Markets lifted their price objective on shares of CIT Group from $44.00 to $47.00 and gave the stock a “market perform” rating in a research report on Thursday, October 25th. TheStreet cut shares of CIT Group from a “b” rating to a “c” rating in a research report on Thursday, November 15th. Finally, Morgan Stanley decreased their target price on shares of CIT Group from $56.00 to $52.00 and set an “equal weight” rating for the company in a research note on Tuesday, December 11th. One research analyst has rated the stock with a sell rating, six have issued a hold rating and four have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and an average target price of $53.36.

Several large investors have recently modified their holdings of CIT. First Mercantile Trust Co. lifted its stake in shares of CIT Group by 82.0% in the 4th quarter. First Mercantile Trust Co. now owns 910 shares of the financial services provider’s stock valued at $35,000 after purchasing an additional 410 shares during the last quarter. Tower Research Capital LLC TRC acquired a new stake in shares of CIT Group in the 3rd quarter valued at $123,000. Garner Asset Management Corp acquired a new stake in shares of CIT Group in the 3rd quarter valued at $230,000. Oppenheimer Asset Management Inc. lifted its stake in shares of CIT Group by 5.8% in the 4th quarter. Oppenheimer Asset Management Inc. now owns 4,521 shares of the financial services provider’s stock valued at $173,000 after purchasing an additional 248 shares during the last quarter. Finally, Meag Munich Ergo Kapitalanlagegesellschaft MBH acquired a new stake in shares of CIT Group in the 3rd quarter valued at $330,000.

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CIT Group Company Profile

CIT Group Inc operates as the bank holding company for CIT Bank, National Association that provides banking and related services to commercial and individual customers. The company operates through three segments: Commercial Banking, Consumer Banking, and Non-Strategic Portfolios (NSP). 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; and equipment leasing and secured financing to railroads and non-rail companies.

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