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 report released on Thursday. The brokerage currently has a $129.00 target price on the stock. Zacks Investment Research’s price target suggests a potential upside of 11.86% from the stock’s current price.
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. In addition, healthy organic growth over the past few quarters has lent stability to the revenues and has enabled the company to comfortably beat earnings estimates in each of the trailing four quarters for a positive earnings surprise. However, persistent challenging macroeconomic environment has mostly driven customers to perform certain in-house services themselves, resulting in a loss of businesses.”
A number of other analysts have also recently issued reports on 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 report on Thursday, August 25th. Morgan Stanley reiterated an “underweight” rating and set a $80.00 target price (up previously from $75.00) on shares of Cintas Corp. in a report on Wednesday, August 17th. Barclays PLC restated 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 price target on shares of Cintas Corp. in a report on Friday, September 30th. Finally, Macquarie began coverage on Cintas Corp. in a report on Thursday, August 25th. They issued a “neutral” rating and a $130.00 price target for the company. One analyst has rated the stock with a sell rating, five have assigned a hold rating and five have assigned a buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus price target of $117.50.
Cintas Corp. (NASDAQ:CTAS) remained flat at $115.32 during mid-day trading on Thursday. 583,353 shares of the company’s stock traded hands. The company has a market capitalization of $12.10 billion, a PE ratio of 17.34 and a beta of 0.86. Cintas Corp. has a one year low of $80.00 and a one year high of $119.94. The company’s 50-day moving average price is $108.27 and its 200 day moving average price is $104.97.
Cintas Corp. (NASDAQ:CTAS) last issued its earnings results on Tuesday, September 27th. The company reported $1.26 earnings per share (EPS) for the quarter, topping 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 earned $1.29 billion during the quarter. During the same quarter in the previous year, the firm posted $0.93 EPS. The firm’s revenue for the quarter was up 7.6% compared to the same quarter last year. On average, equities analysts forecast that Cintas Corp. will post $4.60 earnings per share for the current year.
The company also recently declared an annual dividend, which will be paid on Friday, December 2nd. Investors of record on Friday, November 4th will be given a dividend of $1.33 per share. This is a positive change from Cintas Corp.’s previous annual dividend of $1.05. This represents a dividend yield of 1.23%. The ex-dividend date is Wednesday, November 2nd. Cintas Corp.’s dividend payout ratio is currently 20.24%.
Large investors have recently bought and sold shares of the stock. Quadrant Capital Group LLC raised 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 in the last quarter. First Personal Financial Services raised 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 in the last quarter. Mizuho Asset Management Co. Ltd. raised 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 in the last quarter. Trust Co. of Vermont purchased a new stake in Cintas Corp. during the third quarter valued at about $118,000. Finally, Parasol Investment Management LLC raised 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 in the last quarter. 65.25% of the stock is currently owned by institutional investors and hedge funds.
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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