Is Buying Stock Like CIT Group Inc. Good Idea After Today’s Bullish Options Activity?

 Is Buying Stock Like CIT Group Inc. Good Idea After Today's Bullish Options Activity?

In today’s session CIT Group Inc. (CIT) registered an unusually high (675) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the January, 2018 call, expecting serious CIT increase. With 675 contracts traded and 9234 open interest for the Jan, 18 contract, it seems this is a quite bullish bet. The option with symbol: CIT180119C00028000 closed last at: $12.2 or 8.4% up. About 853,554 shares traded hands. CIT Group Inc. (NYSE:CIT) has risen 22.29% since April 12, 2016 and is uptrending. It has outperformed by 17.31% the S&P500.

CIT Group Inc. (NYSE:CIT) Ratings Coverage

Out of 16 analysts covering CIT Group (NYSE:CIT), 4 rate it a “Buy”, 0 “Sell”, while 12 “Hold”. This means 25% are positive. $57.0 is the highest target while $30 is the lowest. The $38.86 average target is -2.61% below today’s ($39.9) stock price. CIT Group has been the topic of 29 analyst reports since July 23, 2015 according to StockzIntelligence Inc. Oppenheimer maintained CIT Group Inc. (NYSE:CIT) rating on Wednesday, November 4. Oppenheimer has “Outperform” rating and $54 price target. The stock has “Buy” rating given by DA Davidson on Friday, August 21. The company was downgraded on Friday, October 7 by Stifel Nicolaus. The stock has “Hold” rating given by Deutsche Bank on Thursday, January 21. As per Friday, April 29, the company rating was downgraded by Bank of America. Credit Suisse maintained CIT Group Inc. (NYSE:CIT) on Monday, August 15 with “Neutral” rating. The stock of CIT Group Inc. (NYSE:CIT) has “Neutral” rating given on Wednesday, February 3 by Citigroup. Oppenheimer maintained CIT Group Inc. (NYSE:CIT) rating on Wednesday, February 3. Oppenheimer has “Outperform” rating and $50 price target. Oppenheimer maintained CIT Group Inc. (NYSE:CIT) rating on Tuesday, January 5. Oppenheimer has “Outperform” rating and $57.0 price target. Macquarie Research upgraded the stock to “Outperform” rating in Thursday, October 22 report.

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 Q2 2016. Its up 0.11, from 1 in 2016Q1. The ratio increased, 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.
The Germany-based Allianz Asset Mgmt Ag has invested 0% in CIT Group Inc. (NYSE:CIT). Assetmark reported 1 shares or 0% of all its holdings. Dupont Mgmt Corp has invested 0.13% of its portfolio in CIT Group Inc. (NYSE:CIT). Moreover, Teachers Advsr has 0.07% invested in CIT Group Inc. (NYSE:CIT) for 1.19M shares. Capital Guardian reported 1.12 million shares or 0.27% of all its holdings. Dimensional Fund Advisors Lp accumulated 0.02% or 1.26 million shares. Aberdeen Asset Public Ltd Co Uk owns 19,221 shares or 0% of their US portfolio. Moreover, Mizuho Asset Coltd has 0.02% invested in CIT Group Inc. (NYSE:CIT) for 3,396 shares. Aqr Capital Mgmt Limited Co has 43,690 shares for 0% of their US portfolio. Panagora Asset Mngmt Inc has 6,123 shares for 0% of their US portfolio. Comerica Savings Bank accumulated 188,166 shares or 0.06% of the stock. The Netherlands-based Pggm Investments has invested 0.02% in CIT Group Inc. (NYSE:CIT). Rafferty Asset Mgmt Lc accumulated 0.05% or 21,463 shares. Wellington Mgmt Gru Llp has 0% invested in the company for 169,207 shares. The New York-based Ibm Retirement Fund has invested 0.02% in CIT Group Inc. (NYSE:CIT).

CIT Group Inc. is a bank holding company. The company has a market cap of $8.07 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 12.76 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 Wsj.com which published an article titled: “CIT Group Hired Boston Consulting to Review Its Operations” on October 24, 2016.

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