Cintas Corporation (CTAS) Upgraded by Zacks Investment Research to Buy
Cintas Corporation (NASDAQ:CTAS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Thursday. The firm currently has a $153.00 price objective on the business services provider’s stock. Zacks Investment Research‘s price target points to a potential upside of 12.07% from the stock’s current price.
According to Zacks, “Cintas aims to continually achieve revenue build-up by increasing penetration levels at existing customers and broadening the customer base. The acquisition of G&K Services is anticipated to be accretive to Cintas’ earnings. The combined company is likely to cater to over one billion business customers with an extended product portfolio and additional processing capacity. The synergies from the combined operations are expected to yield $130 million to $140 million in cost savings from the fourth year of its operation. 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. Cintas has also outperformed the industry year to date. However, volatility in raw material prices and third-party supply constraints remain potential headwinds for the company.”
Other research analysts have also recently issued reports about the company. Robert W. Baird set a $152.00 price target on Cintas Corporation and gave the company a “buy” rating in a report on Thursday, August 24th. Deutsche Bank AG set a $130.00 price target on Cintas Corporation and gave the company a “hold” rating in a report on Friday, July 21st. Instinet cut Cintas Corporation from a “buy” rating to a “neutral” rating and cut their price target for the company from $142.00 to $130.00 in a report on Tuesday, June 27th. Stifel Nicolaus lifted their price target on Cintas Corporation from $123.00 to $136.00 and gave the company a “hold” rating in a report on Friday, July 21st. Finally, BidaskClub cut Cintas Corporation from a “hold” rating to a “sell” rating in a report on Monday, July 31st. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and five have assigned a buy rating to the company’s stock. Cintas Corporation presently has an average rating of “Hold” and an average target price of $135.70.
Cintas Corporation (NASDAQ:CTAS) traded down 0.12% during mid-day trading on Thursday, hitting $136.36. 109,044 shares of the company were exchanged. The company has a market cap of $14.38 billion, a price-to-earnings ratio of 31.08 and a beta of 0.85. The stock’s 50 day moving average is $133.77 and its 200-day moving average is $127.29. Cintas Corporation has a 12-month low of $102.07 and a 12-month high of $139.74.
Cintas Corporation (NASDAQ:CTAS) last issued its quarterly earnings data on Thursday, July 20th. The business services provider reported $0.75 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.05 by ($0.30). The company had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.53 billion. Cintas Corporation had a net margin of 8.90% and a return on equity of 23.38%. The firm’s revenue was up 23.1% compared to the same quarter last year. During the same period in the previous year, the business posted $1.08 earnings per share. Equities research analysts predict that Cintas Corporation will post $5.23 EPS for the current year.
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In other Cintas Corporation news, CFO J. Michael Hansen sold 800 shares of the business’s stock in a transaction dated Friday, August 11th. The stock was sold at an average price of $130.75, for a total transaction of $104,600.00. Following the completion of the sale, the chief financial officer now directly owns 54,370 shares of the company’s stock, valued at approximately $7,108,877.50. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Gerald S. Adolph sold 2,000 shares of the business’s stock in a transaction dated Tuesday, August 15th. The stock was sold at an average price of $133.69, for a total value of $267,380.00. Following the sale, the director now directly owns 13,135 shares of the company’s stock, valued at $1,756,018.15. The disclosure for this sale can be found here. Insiders own 18.90% of the company’s stock.
A number of large investors have recently made changes to their positions in CTAS. BlackRock Inc. raised its holdings in Cintas Corporation by 1,737.2% during the 1st quarter. BlackRock Inc. now owns 6,465,344 shares of the business services provider’s stock worth $818,121,000 after purchasing an additional 6,113,425 shares during the last quarter. Janus Henderson Group PLC raised its holdings in Cintas Corporation by 10,719.0% during the 2nd quarter. Janus Henderson Group PLC now owns 1,113,279 shares of the business services provider’s stock worth $140,318,000 after purchasing an additional 1,102,989 shares during the last quarter. MARSHALL WACE ASIA Ltd bought a new stake in Cintas Corporation during the 1st quarter worth about $57,378,000. Marshall Wace North America L.P. bought a new stake in Cintas Corporation during the 1st quarter worth about $57,378,000. Finally, Artisan Partners Limited Partnership raised its holdings in Cintas Corporation by 34.4% during the 1st quarter. Artisan Partners Limited Partnership now owns 1,304,321 shares of the business services provider’s stock worth $165,049,000 after purchasing an additional 333,957 shares during the last quarter. 64.76% of the stock is owned by hedge funds and other institutional investors.
About Cintas Corporation
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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