What Will Happen to CIT Group Inc. Next? The Stock Just Had Huge Bearish Options Activity

 What Will Happen to CIT Group Inc. Next? The Stock Just Had Huge Bearish Options Activity

In today’s session CIT Group Inc. (CIT) recorded an unusually high (1,008) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the January, 2017 put, expecting serious CIT decrease. With 1,008 contracts traded and 6484 open interest for the Jan, 17 contract, it seems this is a quite bearish bet. The option with symbol: CIT170120P00035000 closed last at: $1.97 or 12.6% up. About 558,827 shares traded hands. CIT Group Inc. (NYSE:CIT) has risen 9.17% since March 14, 2016 and is uptrending. It has outperformed by 3.56% the S&P500.

Analysts await CIT Group Inc. (NYSE:CIT) to report earnings on November, 1. They expect $0.78 earnings per share, up 200.00% or $0.52 from last year’s $0.26 per share. CIT’s profit will be $158.99 million for 11.54 P/E if the $0.78 EPS becomes a reality. After $0.90 actual earnings per share reported by CIT Group Inc. for the previous quarter, Wall Street now forecasts -13.33% negative EPS growth.

CIT Group Inc. (NYSE:CIT) Ratings Coverage

Out of 15 analysts covering CIT Group (NYSE:CIT), 4 rate it a “Buy”, 0 “Sell”, while 11 “Hold”. This means 27% are positive. CIT Group has been the topic of 28 analyst reports since July 23, 2015 according to StockzIntelligence Inc. The stock of CIT Group Inc. (NYSE:CIT) has “Outperform” rating given on Tuesday, January 5 by Oppenheimer. The firm has “Neutral” rating by Credit Suisse given on Monday, August 15. On Wednesday, February 3 the stock rating was downgraded by Citigroup to “Neutral”. On Friday, December 18 the stock rating was initiated by JMP Securities with “Mkt Outperform”. Oppenheimer maintained CIT Group Inc. (NYSE:CIT) rating on Wednesday, November 4. Oppenheimer has “Outperform” rating and $54 price target. Bank of America downgraded the shares of CIT in a report on Friday, April 29 to “Underperform” rating. The stock has “Hold” rating given by Deutsche Bank on Thursday, January 21. The firm has “Outperform” rating given on Wednesday, February 3 by Oppenheimer. DA Davidson initiated the stock with “Buy” rating in Friday, August 21 report. The rating was maintained by Oppenheimer with “Outperform” on Tuesday, October 6.

According to Zacks Investment Research, “CIT Group Inc. is a bank holding company that provides financing and leasing capital for commercial companies throughout the world. Covering a wide variety of industries, the Company offers vendor, equipment, commercial, and structured financing products, as well as factoring and management advisory services. CIT operates CIT Bank, a full service Utah state bank, which is regulated by the Utah Department of Financial Institutions and the FDIC. CIT Group operates primarily in North America, with locations in Europe, Latin America, Australia and the Asia-Pacific region. The Company is headquartered in New York City.”

Insitutional Activity: The institutional sentiment increased to 1.11 in 2016 Q2. Its up 0.11, from 1 in 2016Q1. The ratio improved, as 42 funds sold all CIT Group Inc. shares owned while 80 reduced positions. 27 funds bought stakes while 108 increased positions. They now own 182.30 million shares or 0.06% more from 182.19 million shares in 2016Q1.
Lsv Asset Mgmt has invested 0.24% of its portfolio in CIT Group Inc. (NYSE:CIT). California Pub Employees Retirement reported 658,600 shares or 0.03% of all its holdings. Nomura Asset Management Ltd reported 26,468 shares or 0.02% of all its holdings. Calvert Invest Mngmt owns 13,241 shares or 0.02% of their US portfolio. The Alabama-based Fjarde Ap has invested 0.05% in CIT Group Inc. (NYSE:CIT). Prudential holds 794,173 shares or 0.04% of its portfolio. First Pacific Ltd Liability Com last reported 14.19M shares in the company. Kbc Grp Nv accumulated 39,693 shares or 0.02% of the stock. Rockefeller Services Incorporated holds 0% of its portfolio in CIT Group Inc. (NYSE:CIT) for 100 shares. Delta Lloyd Nv holds 0.02% or 15,405 shares in its portfolio. Sandell Asset Mgmt Corporation has 314,443 shares for 2.22% of their US portfolio. Hudock Ltd Liability Company last reported 0.01% of its portfolio in the stock. The Japan-based Meiji Yasuda Asset Management has invested 0.04% in CIT Group Inc. (NYSE:CIT). Andra Ap holds 0.05% or 61,100 shares in its portfolio. Investors, a California-based fund reported 6.39M shares.

CIT Group Inc. is a bank holding company. The company has a market cap of $7.34 billion. The Company, together with its subsidiaries, provides financing, leasing and advisory services to middle market companies in a range of industries in North America, and equipment financing and leasing solutions to the transportation industry around the world. It has a 5.97 P/E ratio. The Company’s divisions include North America Banking (NAB), including Commercial Real Estate, Commercial Banking and Consumer Banking divisions; Transportation & International Finance (TIF), including Aerospace, Rail, Maritime Finance and International Finance divisions, and Legacy Consumer Mortgages (LCM), which includes single-family residential mortgage (SFR) loans and reverse mortgage loans.

CIT Company Profile

CIT Group Inc. (CIT), incorporated on March 12, 2001, is a bank holding company. The Company, together with its subsidiaries, provides financing, leasing and advisory services to middle market companies in a range of industries in North America, and equipment financing and leasing solutions to the transportation industry around the world. The Company’s divisions include North America Banking (NAB), including Commercial Real Estate, Commercial Banking and Consumer Banking divisions; Transportation & International Finance (TIF), including Aerospace, Rail, Maritime Finance and International Finance divisions, and Legacy Consumer Mortgages (LCM), which includes single-family residential mortgage (SFR) loans and reverse mortgage loans. The Company’s services and products include account receivables collection; equipment leases; acquisition and expansion financing; factoring services; financial risk management; asset management and servicing; import and export financing; asset loans; insurance services; credit protection; letters of credit/trade acceptances; debt restructuring; debt underwriting and syndication; mergers and acquisition advisory services (M&A); deposits, and secured lines of credit.

Another recent and important CIT Group Inc. (NYSE:CIT) news was published by Nasdaq.com which published an article titled: “Commit To Purchase CIT Group At $23, Earn 8.4% Using Options” on October 13, 2016.

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