CIT Group is up 2.2% since the start of June, and paid its $0.15 dividend. This increase is mainly due to the possibility of increasing interest rates. CIT Group has been growing their loan book and has been growing their airplane fleet. CIT Group has also been participating in a stock buy back program which all is increasing the price of the stock.
I recommend that we continue to hold CIT Group in the portfolio. CIT Group has a 4% net interest margin, which is higher than industry. CIT also services small and middle markets, and the financing industry is changing because GE Finance is looking to sell their division. CIT Group is also still in the processes of acquiring OneWest bank which a deal should be completed in the coming months. However, no public advancements on the merger have happened since March since the public hearing.