CIT Enters $512 Million Stock Buyback Agreement With Morgan Stanley

CIT Group Inc. announced Thursday that it will buy back $512 million worth of its common stock, as part of an accelerated share repurchase (ASR) agreement with Morgan Stanley. Under terms of the ASR, CIT will initially receive 9.25 million shares, but the final amount of shares received will be based on the volume-weighted average price during the term of the ASR. The ASR is part of the financial holding company's plan to return $550 million of capital through share repurchases, in which $38 million worth of open-market share purchases were already completed. The stock inched up less than 0.1% in premarket trade. It has rallied 10.2% year to date, while the S&P 500 has gained 8.9%.