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CIT Group Closes Joint Venture Stake Sale: What's Next?
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CIT Group Inc. completed the sale of its 30% stake in the joint ventures with Tokyo Century Corporation. The deal to divest the stakes was announced last month.
The joint ventures were formed in Oct 2014 with a 70% equity contribution by Tokyo Century and 30% equity contribution by CIT Group. As part of the deal, CIT Group divested its stakes in aircraft leasing joint ventures – TC-CIT Aviation Ireland and TC-CIT Aviation U.S., Inc. The financial terms of the deal were not disclosed.
The stake sale is in sync with CIT Group’s long-term strategy to simplify operations and focus on becoming a leading regional commercial banking entity. The company intends to concentrate on its middle-market and small business lending areas that will likely get support from its growing banking franchise.
Earlier in Oct 2016, CIT Group announced a transaction to divest its aircraft leasing business, CIT Commercial Air for $10 billion and completed the sale of its Canada business. Notably, over the past few years, it sold its businesses in Brazil and Mexico, completed the sale of the UK Equipment Finance platform and continues to make progress in the sale of its China assets.
Driven by these efforts, CIT Group has been able to improve its operating efficiency. Also, the company remains on track to achieve expense saving target from continuing operations of $150 million by 2018. Overall, these streamlining initiatives raises hope for performance enhancement in the future.
Over the last six months, shares of CIT Group increased 17.1%, marginally outpacing the Zacks categorized Miscellaneous Service industry’s gain of 16.5%.
Currently, CIT Group carries a Zacks Rank #3 (Hold).
BancFirst Corporation witnessed upward earnings estimate revision of 0.4%, over the past 60 days. Also, its share price gained 24.4%, over the last six months.
Southside Bancshares' earnings estimates remained stable over the past 60 days. Its share price jumped 2.7%, over the last six months.
Texas Capital witnessed an upward earnings estimate revision of 0.5%, over the past two months. Over the last six months, its share price surged 48.1%.
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CIT Group Closes Joint Venture Stake Sale: What's Next?
CIT Group Inc. completed the sale of its 30% stake in the joint ventures with Tokyo Century Corporation. The deal to divest the stakes was announced last month.
The joint ventures were formed in Oct 2014 with a 70% equity contribution by Tokyo Century and 30% equity contribution by CIT Group. As part of the deal, CIT Group divested its stakes in aircraft leasing joint ventures – TC-CIT Aviation Ireland and TC-CIT Aviation U.S., Inc. The financial terms of the deal were not disclosed.
The stake sale is in sync with CIT Group’s long-term strategy to simplify operations and focus on becoming a leading regional commercial banking entity. The company intends to concentrate on its middle-market and small business lending areas that will likely get support from its growing banking franchise.
Earlier in Oct 2016, CIT Group announced a transaction to divest its aircraft leasing business, CIT Commercial Air for $10 billion and completed the sale of its Canada business. Notably, over the past few years, it sold its businesses in Brazil and Mexico, completed the sale of the UK Equipment Finance platform and continues to make progress in the sale of its China assets.
Driven by these efforts, CIT Group has been able to improve its operating efficiency. Also, the company remains on track to achieve expense saving target from continuing operations of $150 million by 2018. Overall, these streamlining initiatives raises hope for performance enhancement in the future.
Over the last six months, shares of CIT Group increased 17.1%, marginally outpacing the Zacks categorized Miscellaneous Service industry’s gain of 16.5%.
Currently, CIT Group carries a Zacks Rank #3 (Hold).
Some Stocks Worth a Look
Some better-ranked finance stocks worth considering include BancFirst Corporation (BANF - Free Report) , Southside Bancshares, Inc. (SBSI - Free Report) and Texas Capital Bancshares, Inc. (TCBI - Free Report) . All these stocks carry a Zacks Rank #2(Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
BancFirst Corporation witnessed upward earnings estimate revision of 0.4%, over the past 60 days. Also, its share price gained 24.4%, over the last six months.
Southside Bancshares' earnings estimates remained stable over the past 60 days. Its share price jumped 2.7%, over the last six months.
Texas Capital witnessed an upward earnings estimate revision of 0.5%, over the past two months. Over the last six months, its share price surged 48.1%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>