Cintas Corp. (CTAS) Stock Rating Upgraded by Zacks Investment Research
Cintas Corp. (NASDAQ:CTAS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Thursday. The firm presently has a $122.00 price objective on the stock. Zacks Investment Research’s target price indicates a potential upside of 9.21% from the stock’s previous close.
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. Buoyed by the healthy first-quarter results, Cintas has also increased its guidance for fiscal 2017. 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.”
CTAS has been the topic of a number of other reports. Barclays PLC cut their price target on Cintas Corp. from $105.00 to $95.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 20th. Robert W. Baird restated an “outperform” rating and set a $140.00 target price on shares of Cintas Corp. in a research note on Friday, September 30th. Oppenheimer Holdings Inc. restated a “market perform” rating on shares of Cintas Corp. in a research note on Wednesday, September 28th. KeyCorp boosted their target price on Cintas Corp. from $130.00 to $135.00 and gave the stock an “overweight” rating in a research note on Monday, October 3rd. Finally, Nomura restated a “buy” rating and set a $124.00 target price (up from $107.00) on shares of Cintas Corp. in a research note on Wednesday, August 17th. One analyst has rated the stock with a sell rating, five have given a hold rating and five have given a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus target price of $116.80.
Cintas Corp. (NASDAQ:CTAS) opened at 111.71 on Thursday. The stock has a 50 day moving average price of $108.09 and a 200 day moving average price of $104.35. The company has a market cap of $11.72 billion, a P/E ratio of 16.79 and a beta of 0.86. Cintas Corp. has a 1-year low of $80.00 and a 1-year 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 24.60% and a net margin of 14.63%. The business had revenue of $1.29 billion for the quarter. During the same quarter in the prior year, the business 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 $4.60 EPS for the current fiscal year.
The company also recently declared an annual dividend, which will be paid on Friday, December 2nd. Shareholders of record on Friday, November 4th will be paid a dividend of $1.33 per share. This represents a yield of 1.23%. The ex-dividend date is Wednesday, November 2nd. This is an increase from Cintas Corp.’s previous annual dividend of $1.05. Cintas Corp.’s payout ratio is presently 20.24%.
Hedge funds have recently bought and sold shares of the stock. Quadrant Capital Group LLC increased 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 last quarter. First Personal Financial Services boosted its position in shares of 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 position in shares of 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. Trust Co. of Vermont bought a new position in shares of Cintas Corp. during the third quarter valued at about $118,000. Finally, Parasol Investment Management LLC boosted its position in shares of 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. Institutional investors and hedge funds own 65.25% of the company’s stock.
About Cintas Corp.
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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