Cintas Corporation (NASDAQ:CTAS) Given Average Recommendation of "Hold" by Analysts

Key Points

• Cintas Corporation (NASDAQ:CTAS) has received a consensus recommendation of "Hold" from fourteen analysts, with two selling, five holding, six buying, and one strongly buying the stock.
• The company recently increased its quarterly dividend from $0.39 to $0.45 per share, representing an annual yield of 0.9%.
• Cintas reported earnings of $1.09 per share for the last quarter, exceeding analysts' expectations, with revenue of $2.67 billion, up by 8.0% year-over-year.

Shares of Cintas Corporation (NASDAQ:CTAS - Get Free Report) have earned a consensus recommendation of "Hold" from the fourteen analysts that are covering the stock, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company. The average 1-year price target among analysts that have updated their coverage on the stock in the last year is $224.5385.

CTAS has been the topic of a number of research reports. Wells Fargo & Company raised shares of Cintas from an "underweight" rating to an "equal weight" rating and boosted their target price for the stock from $196.00 to $221.00 in a report on Tuesday, July 1st. The Goldman Sachs Group boosted their target price on shares of Cintas from $233.00 to $257.00 and gave the stock a "buy" rating in a report on Wednesday, July 2nd. Morgan Stanley boosted their target price on shares of Cintas from $213.00 to $220.00 and gave the stock an "equal weight" rating in a report on Friday, July 18th. JPMorgan Chase & Co. initiated coverage on shares of Cintas in a report on Monday, July 14th. They set an "overweight" rating and a $239.00 target price on the stock. Finally, Royal Bank Of Canada reissued a "sector perform" rating and set a $240.00 target price on shares of Cintas in a report on Thursday, August 21st.

Insider Activity

In other news, Director Martin Mucci acquired 1,200 shares of Cintas stock in a transaction dated Monday, July 21st. The shares were bought at an average cost of $222.55 per share, with a total value of $267,060.00. Following the purchase, the director owned 2,621 shares in the company, valued at $583,303.55. This trade represents a 84.45% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Todd M. Schneider sold 17,301 shares of the company's stock in a transaction on Monday, July 28th. The shares were sold at an average price of $220.90, for a total transaction of $3,821,790.90. Following the completion of the sale, the chief executive officer directly owned 622,712 shares in the company, valued at approximately $137,557,080.80. This represents a 2.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 15.00% of the company's stock.

Institutional Investors Weigh In On Cintas

A number of institutional investors have recently modified their holdings of CTAS. Nuveen LLC bought a new stake in shares of Cintas in the 1st quarter valued at $1,877,760,000. Norges Bank acquired a new position in shares of Cintas during the 2nd quarter valued at $925,531,000. GAMMA Investing LLC lifted its position in shares of Cintas by 19,644.3% during the 1st quarter. GAMMA Investing LLC now owns 2,263,091 shares of the business services provider's stock valued at $465,133,000 after acquiring an additional 2,251,629 shares during the period. Voya Investment Management LLC lifted its position in shares of Cintas by 516.8% during the 1st quarter. Voya Investment Management LLC now owns 854,032 shares of the business services provider's stock valued at $175,529,000 after acquiring an additional 715,570 shares during the period. Finally, Los Angeles Capital Management LLC lifted its position in shares of Cintas by 90.1% during the 2nd quarter. Los Angeles Capital Management LLC now owns 1,214,098 shares of the business services provider's stock valued at $270,586,000 after acquiring an additional 575,372 shares during the period. 63.46% of the stock is owned by institutional investors.

Cintas Trading Up 1.5%

Shares of Cintas stock opened at $204.50 on Friday. The firm has a market capitalization of $82.41 billion, a PE ratio of 46.37, a price-to-earnings-growth ratio of 3.47 and a beta of 1.01. The company has a current ratio of 2.09, a quick ratio of 1.82 and a debt-to-equity ratio of 0.52. The firm's 50 day moving average is $216.36 and its 200 day moving average is $212.82. Cintas has a 1 year low of $180.78 and a 1 year high of $229.24.

Cintas (NASDAQ:CTAS - Get Free Report) last announced its quarterly earnings results on Thursday, July 17th. The business services provider reported $1.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.07 by $0.02. The company had revenue of $2.67 billion for the quarter, compared to analyst estimates of $2.63 billion. Cintas had a net margin of 17.53% and a return on equity of 41.21%. The firm's revenue was up 8.0% on a year-over-year basis. During the same period in the previous year, the firm posted $3.99 EPS. Cintas has set its FY 2026 guidance at 4.710-4.85 EPS. Equities research analysts forecast that Cintas will post 4.31 earnings per share for the current fiscal year.

Cintas Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Friday, August 15th will be issued a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Friday, August 15th. This is a positive change from Cintas's previous quarterly dividend of $0.39. Cintas's payout ratio is presently 40.82%.

About Cintas

Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms.

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