Many stocks have been testing new highs in 2020, and one of the most notable is CIT Group Inc. (CIT). Currently, CIT is trading at $29.63 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $28.70.
To add more color to this target, the company’s high over the last year is $53.40 and the low is $12.02. Over the last 52 weeks, CIT is down -44.51% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, CIT reported a profit of $287.9 million. CIT Group Inc. also saw revenues increase to $513.6 million. In addition, CIT has free cash flow of -$625.4 million as of 03-2020.
CIT booked profit margins of -11.70%, its Return on Equity (ROE) is -4.20%, and its Return on Assets is -0.40%. All told, it is clear that, CIT needs to be on your watchlist.
About CIT Group Inc.
If readers are unfamiliar, 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 provides a range of commercial lending, leasing, and deposit products; loans comprising revolving lines of credit, term loans, unsecured loans, collateral-backed loans, asset-based loans, commercial real estate loans, and cash flow loans; and ancillary services and products, including cash management, capital markets, and advisory services primarily to small and middle market companies. This segment also offers asset management, factoring, receivable management, and secured financing services; supply chain financing, leasing and equipment financing to small businesses and middle market, and railroads and shippers. The Consumer Banking segment provides checking, savings, money market, and individual retirement accounts; time deposits and certificates of deposit; residential mortgage loans; small business administration loans; payment solutions; and fiduciary services. The company also offers leasing and advisory, and online banking services. It operates through a network of approximately 60 branches located in southern California. CIT Group Inc. was founded in 1908 and is based in New York, New York.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CIT has a short ratio of 2.52 and outstanding shares of 98.09M.
CIT has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 3.5 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -2.31. Investors should also keep an eye on sector updates as CIT has historically followed its peers on positive news.
All told, CIT Group Inc. CIT has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CIT represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
CIT Group Inc. CIT is now commanding a market cap of 2.91B and a float of 95.82M. CIT is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CIT stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in CIT, either long or short, and we have not been compensated for this article.