Cintas Corp. (CTAS) Upgraded to “Hold” by Zacks Investment Research
According to Zacks, “Cintas procures raw materials from a wide variety of domestic and international suppliers, making it susceptible to market risks which are beyond its control. In addition, the company has to continually invest in value drivers to fend competition, which further weakens its profitability. Moreover, persistent challenging macroeconomic environment has mostly driven customers to perform certain in-house services instead of outsourcing these services to Cintas, which have resulted in loss of businesses. However, Cintas’ investment strategy takes a holistic view of the rapidly evolving market and deploys a dynamic capital allocation approach to focus on the relative value of the various sectors within the broader industry. The acquisition of rival G&K Services Inc. is likely to fuel its growth momentum, catering to over one billion business customers with an extended product portfolio and additional processing capacity.”
Several other research analysts also recently weighed in on the company. Nomura reaffirmed a buy rating on shares of Cintas Corp. in a research note on Sunday, July 17th. Barclays PLC reduced their target price on Cintas Corp. from $105.00 to $95.00 and set an equal weight rating for the company in a research note on Wednesday, July 20th. KeyCorp upped their target price on Cintas Corp. from $110.00 to $130.00 and gave the stock an overweight rating in a research note on Wednesday, August 17th. Morgan Stanley reaffirmed an underweight rating and set a $80.00 target price (up from $75.00) on shares of Cintas Corp. in a research note on Wednesday, August 17th. Finally, Piper Jaffray Cos. reaffirmed a neutral rating and set a $106.00 target price (up from $95.00) on shares of Cintas Corp. in a research note on Wednesday, July 20th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and four have issued a buy rating to the company. Cintas Corp. currently has a consensus rating of Hold and a consensus price target of $115.40.
Cintas Corp. (NASDAQ:CTAS) traded up 2.755% on Tuesday, hitting $116.555. 644,160 shares of the company were exchanged. The stock has a market capitalization of $12.15 billion, a P/E ratio of 18.673 and a beta of 0.85. The stock’s 50-day moving average price is $113.99 and its 200-day moving average price is $99.48. Cintas Corp. has a 52-week low of $80.00 and a 52-week high of $119.94.
Cintas Corp. (NASDAQ:CTAS) last announced its quarterly earnings results on Tuesday, September 27th. The company reported $1.26 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.08 by $0.18. Cintas Corp. had a return on equity of 24.16% and a net margin of 14.14%. The company earned $1.29 billion during the quarter. During the same period in the previous year, the firm posted $0.93 earnings per share. The company’s revenue was up 7.6% compared to the same quarter last year. On average, equities research analysts anticipate that Cintas Corp. will post $4.42 earnings per share for the current fiscal year.
In related news, Director Gerald S. Adolph sold 2,000 shares of the firm’s stock in a transaction dated Monday, July 25th. The stock was sold at an average price of $108.12, for a total transaction of $216,240.00. Following the completion of the transaction, the director now directly owns 11,590 shares in the company, valued at approximately $1,253,110.80. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 19.10% of the company’s stock.
Institutional investors have recently made changes to their positions in the stock. Williams Jones & Associates LLC boosted its position in shares of Cintas Corp. by 10.8% in the second quarter. Williams Jones & Associates LLC now owns 13,794 shares of the company’s stock worth $1,354,000 after buying an additional 1,344 shares during the period. Kentucky Retirement Systems Insurance Trust Fund purchased a new position in shares of Cintas Corp. during the second quarter worth approximately $343,000. Kentucky Retirement Systems purchased a new position in shares of Cintas Corp. during the second quarter worth approximately $723,000. Mason Street Advisors LLC purchased a new position in shares of Cintas Corp. during the second quarter worth approximately $1,146,000. Finally, Royal Bank of Canada boosted its position in shares of Cintas Corp. by 108.2% in the second quarter. Royal Bank of Canada now owns 353,658 shares of the company’s stock worth $34,705,000 after buying an additional 183,781 shares during the period. Institutional investors own 65.78% of the company’s stock.
Cintas Corp. Company Profile
Cintas Corporation is a provider of corporate identity uniforms through rental and sales programs, as well as a provider of related business services, including entrance mats, restroom cleaning services and supplies, carpet and tile cleaning services, first aid and safety services and fire protection products and services.
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