Cintas Co. (NASDAQ:CTAS) Receives Average Recommendation of “Hold” from Analysts

Shares of Cintas Co. (NASDAQ:CTAS) have earned a consensus rating of “Hold” from the sixteen analysts that are covering the company, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating and six have given a buy rating to the company. The average 1 year price objective among brokerages that have issued ratings on the stock in the last year is $742.36.

Several equities analysts have recently weighed in on CTAS shares. Redburn Atlantic started coverage on Cintas in a report on Friday. They issued a “neutral” rating and a $670.00 price objective for the company. UBS Group raised their price target on Cintas from $790.00 to $874.00 and gave the company a “buy” rating in a research note on Friday, July 19th. Baird R W cut Cintas from a “strong-buy” rating to a “hold” rating in a research note on Friday, July 19th. StockNews.com raised Cintas from a “hold” rating to a “buy” rating in a report on Friday, June 14th. Finally, Citigroup downgraded shares of Cintas from a “neutral” rating to a “sell” rating and boosted their target price for the stock from $530.00 to $570.00 in a report on Friday, May 24th.

Insider Buying and Selling at Cintas

In other news, Director Gerald S. Adolph sold 1,100 shares of the business’s stock in a transaction that occurred on Wednesday, July 24th. The stock was sold at an average price of $765.72, for a total transaction of $842,292.00. Following the completion of the sale, the director now owns 31,452 shares in the company, valued at $24,083,425.44. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Insiders own 15.10% of the company’s stock.

Institutional Investors Weigh In On Cintas

A number of hedge funds and other institutional investors have recently modified their holdings of the company. LGT Financial Advisors LLC raised its position in shares of Cintas by 311.1% in the second quarter. LGT Financial Advisors LLC now owns 37 shares of the business services provider’s stock valued at $26,000 after buying an additional 28 shares in the last quarter. Atwood & Palmer Inc. acquired a new position in Cintas in the 2nd quarter valued at $27,000. Pathway Financial Advisers LLC bought a new stake in Cintas during the first quarter worth about $29,000. Janiczek Wealth Management LLC lifted its position in Cintas by 113.0% during the fourth quarter. Janiczek Wealth Management LLC now owns 49 shares of the business services provider’s stock worth $30,000 after purchasing an additional 26 shares during the period. Finally, Rise Advisors LLC acquired a new stake in Cintas during the first quarter worth about $30,000. Institutional investors and hedge funds own 63.46% of the company’s stock.

Cintas Price Performance

Shares of CTAS opened at $759.63 on Thursday. The stock has a 50 day simple moving average of $722.91 and a 200 day simple moving average of $676.94. Cintas has a 52-week low of $474.74 and a 52-week high of $773.95. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.52 and a current ratio of 1.74. The firm has a market capitalization of $77.07 billion, a PE ratio of 52.46, a P/E/G ratio of 4.06 and a beta of 1.31.

Cintas shares are scheduled to split before the market opens on Thursday, September 12th. The 4-1 split was announced on Thursday, May 2nd. The newly created shares will be payable to shareholders after the market closes on Wednesday, September 11th.

Cintas (NASDAQ:CTAS) last posted its quarterly earnings data on Thursday, July 18th. The business services provider reported $3.99 earnings per share for the quarter, topping the consensus estimate of $3.80 by $0.19. Cintas had a return on equity of 37.82% and a net margin of 16.38%. The company had revenue of $2.47 billion during the quarter, compared to analysts’ expectations of $2.47 billion. During the same period in the prior year, the firm earned $3.33 earnings per share. Cintas’s revenue for the quarter was up 8.2% compared to the same quarter last year. Sell-side analysts predict that Cintas will post 16.62 EPS for the current fiscal year.

Cintas Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 3rd. Investors of record on Thursday, August 15th will be issued a dividend of $1.56 per share. This is an increase from Cintas’s previous quarterly dividend of $1.35. The ex-dividend date of this dividend is Thursday, August 15th. This represents a $6.24 annualized dividend and a dividend yield of 0.82%. Cintas’s payout ratio is presently 43.09%.

Cintas declared that its Board of Directors has approved a share buyback plan on Tuesday, July 23rd that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the business services provider to reacquire up to 1.3% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its shares are undervalued.

About Cintas

Cintas Corporation provides corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms.