Cintas Corp. (CTAS) Downgraded to “Hold” at Zacks Investment Research
Cintas Corp. (NASDAQ:CTAS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.
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 fuel growth. The acquisition of rival G&K Services is likely to fuel its growth momentum with an extended product portfolio and additional processing capacity. 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, resulting in a loss of businesses. A sustained increase in raw material prices, adverse foreign currency translation risks, and stiff competition remain additional headwinds.”
Other analysts have also recently issued research reports about the company. Nomura reiterated a “buy” rating and set a $135.00 target price (up previously from $124.00) on shares of Cintas Corp. in a research report on Thursday, August 25th. KeyCorp increased their price target on Cintas Corp. from $110.00 to $130.00 and gave the company an “overweight” rating in a research note on Wednesday, August 17th. Morgan Stanley reissued an “underweight” rating and set a $80.00 price target (up from $75.00) on shares of Cintas Corp. in a research note on Wednesday, August 17th. Barclays PLC raised Cintas Corp. from an “equal weight” rating to an “overweight” rating and increased their price target for the company from $110.00 to $130.00 in a research note on Wednesday, August 17th. Finally, Oppenheimer Holdings Inc. reissued a “market perform” rating on shares of Cintas Corp. in a research note on Wednesday, September 28th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and four have assigned a buy rating to the stock. The company has a consensus rating of “Hold” and an average target price of $116.80.
Cintas Corp. (NASDAQ:CTAS) traded up 0.89% during trading on Tuesday, hitting $113.79. The stock had a trading volume of 230,528 shares. The stock has a 50 day moving average price of $108.10 and a 200-day moving average price of $104.72. The stock has a market cap of $11.94 billion, a price-to-earnings ratio of 17.11 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 released its earnings results on Tuesday, September 27th. The company reported $1.26 earnings per share (EPS) for the quarter, topping the 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 firm earned $1.29 billion during the quarter. During the same quarter in the prior year, the business posted $0.93 EPS. The business’s revenue for the quarter was up 7.6% compared to the same quarter last year. On average, equities analysts predict that Cintas Corp. will post $4.60 EPS for the current year.
The firm also recently declared an annual dividend, which will be paid on Friday, December 2nd. Stockholders of record on Friday, November 4th will be issued a $1.33 dividend. This represents a dividend yield of 1.23%. This is an increase from Cintas Corp.’s previous annual dividend of $1.05. The ex-dividend date of this dividend is Wednesday, November 2nd. Cintas Corp.’s dividend payout ratio is presently 20.24%.
Several large investors have recently modified their holdings of CTAS. Quadrant Capital Group LLC increased its stake in shares of 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 increased its stake 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 last quarter. Mizuho Asset Management Co. Ltd. increased its stake 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 last quarter. Trust Co. of Vermont acquired a new stake in shares of Cintas Corp. during the third quarter valued at $118,000. Finally, Parasol Investment Management LLC increased its stake 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 last quarter. Hedge funds and other institutional investors 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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