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CIT Group Inc. (CIT - Analyst Report) recently announced that its board of directors has approved of a $300 million share buyback program. The shares can be repurchased till Dec 31, 2014.

Additionally, CIT Group got an extension of the time period to repurchase shares worth $7 million left from its 2013 share buyback program. The company, after the termination of its agreement with FRBNY (which restrained it from deploying capital without prior approval) in May 2013, announced a $200 million share buyback program. At the end of 2013, the company was able to repurchase $193 million shares.

Besides the share buyback programs, CIT Group reinstated its quarterly dividend of 10 cents per share in Oct 2013. The dividend will be paid on Feb 28, 2014 to shareholders of record as of Feb 14, 2014. Given the company’s stable capital position, we believe that it will continue to enhance shareholder value.

Apart from the capital deployment plans, we believe CIT Group’s efforts to lower its debt burden by either eliminating or refinancing high-cost, long-term debt will work in favor of the company. This action will lower funding costs and will aid in margin growth. Also, a steadily improving global economy and an advancing domestic market will boost demand for financing of inventories and capital equipments, considered to be favorable for CIT Group.

The Zacks Consensus Estimate for CIT Group currently stands at $3.57 for 2013 and $4.10 for 2014, reflecting year-over-year growth of 221.1% and 14.8%, respectively. The company is scheduled to release its 2013 financial results on Jan 28, 2014.

CIT Group currently has a $9.9 billion market capitalization. The stock currently has a Zacks Rank #2 (Buy). Other stocks to watch out for in the industry are American Express Co. (AXP - Analyst Report), Financial Engines, Inc. (FNGN - Snapshot Report) and Portfolio Recovery Associates Inc. (PRAA - Analyst Report). All these companies carry the same Zacks Rank as CIT Group.

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