Zacks Investment Research Downgrades Cintas Corp. (CTAS) to Hold
Cintas Corp. (NASDAQ:CTAS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.
According to Zacks, “Cintas started fiscal 2017 on a positive note on the back of healthy top-line growth. The company has a positive earnings history, beating estimates in each of the trailing four quarters. 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 is likely to fuel its growth momentum, catering to over one billion business customers with an extended product portfolio and additional processing capacity. However, 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. It procures raw materials from domestic and international suppliers, a sustained increase in raw material costs may weigh on the margins.”
A number of other analysts also recently issued reports on the stock. KeyCorp lifted their price target on shares of Cintas Corp. from $130.00 to $135.00 and gave the company an “overweight” rating in a report on Monday, October 3rd. Barclays PLC reiterated an “overweight” rating and issued a $130.00 price target on shares of Cintas Corp. in a report on Friday, September 30th. Robert W. Baird restated an “outperform” rating and issued a $140.00 target price on shares of Cintas Corp. in a report on Friday, September 30th. Oppenheimer Holdings Inc. restated a “market perform” rating on shares of Cintas Corp. in a report on Wednesday, September 28th. Finally, Morgan Stanley set a $87.00 target price on shares of Cintas Corp. and gave the stock a “sell” rating in a report on Wednesday, September 28th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and four have given a buy rating to the stock. The stock has a consensus rating of “Hold” and an average price target of $117.10.
Shares of Cintas Corp. (NASDAQ:CTAS) opened at 109.14 on Monday. The stock’s 50 day moving average is $108.36 and its 200-day moving average is $104.11. The stock has a market capitalization of $11.45 billion, a price-to-earnings ratio of 16.41 and a beta of 0.86. Cintas Corp. has a 12-month low of $80.00 and a 12-month 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 analysts’ consensus estimates of $1.08 by $0.18. The company had revenue of $1.29 billion for the quarter. Cintas Corp. had a net margin of 14.63% and a return on equity of 24.60%. The business’s revenue was up 7.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.93 earnings per share. On average, analysts expect that Cintas Corp. will post $4.60 earnings per share for the current year.
The business also recently disclosed an annual dividend, which will be paid on Friday, December 2nd. Shareholders of record on Friday, November 4th will be given a $1.33 dividend. This represents a yield of 1.23%. This is a boost from Cintas Corp.’s previous annual dividend of $1.05. The ex-dividend date of this dividend is Wednesday, November 2nd. Cintas Corp.’s payout ratio is 20.24%.
A number of large investors have recently added to or reduced their stakes in CTAS. Trust Co. of Vermont bought a new stake in Cintas Corp. during the third quarter valued at about $118,000. Parasol Investment Management LLC boosted its stake in Cintas Corp. by 19.2% in the third quarter. Parasol Investment Management LLC now owns 1,054 shares of the company’s stock valued at $119,000 after buying an additional 170 shares during the period. First Personal Financial Services boosted its stake in Cintas Corp. by 38.1% in the second quarter. First Personal Financial Services now owns 1,105 shares of the company’s stock valued at $108,000 after buying an additional 305 shares during the period. Mizuho Asset Management Co. Ltd. boosted its stake in Cintas Corp. by 50.2% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 1,128 shares of the company’s stock valued at $111,000 after buying an additional 377 shares during the period. Finally, Quadrant Capital Group LLC boosted its stake in Cintas Corp. by 0.8% in the second quarter. Quadrant Capital Group LLC now owns 1,129 shares of the company’s stock valued at $106,000 after buying an additional 9 shares during the period. 64.03% of the stock is owned by institutional investors.
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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