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

Key Points

• Analyst consensus: Fourteen analysts give Cintas an average "Hold" rating (1 sell, 7 hold, 5 buy, 1 strong buy) with a 12‑month mean price target of $215.17 versus the stock's recent open of $175.90, implying meaningful upside.
• Quarterly results: Cintas reported Q results with EPS of $1.24 (in line) and revenue of $2.84B (slightly above estimates), with revenue up 8.9% year‑over‑year and sell‑side forecasts of $4.89 EPS for the fiscal year.
• Dividends and ownership moves: The company declared a $0.45 quarterly dividend (1.0% yield), an insider sold 4,666 shares, and institutional investors now own 63.46% of the stock, including large recent purchases by Norges Bank and Two Sigma.

Shares of Cintas Corporation (NASDAQ:CTAS - Get Free Report) have been assigned an average recommendation of "Hold" from the fourteen research firms that are currently covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, seven have assigned a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $215.1667.

A number of research analysts recently issued reports on the company. Bank of America assumed coverage on Cintas in a report on Tuesday, February 17th. They set a "neutral" rating and a $215.00 target price on the stock. Weiss Ratings cut Cintas from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, April 1st. UBS Group reissued a "buy" rating on shares of Cintas in a research note on Thursday, March 12th. Argus raised Cintas to a "strong-buy" rating in a research note on Wednesday, January 21st. Finally, Robert W. Baird raised Cintas from a "neutral" rating to an "outperform" rating and set a $250.00 price target on the stock in a research note on Wednesday, March 11th.

Cintas Price Performance

NASDAQ:CTAS opened at $175.90 on Friday. The business's 50-day moving average price is $185.31 and its 200 day moving average price is $187.78. The firm has a market cap of $70.38 billion, a P/E ratio of 49.69, a PEG ratio of 3.13 and a beta of 1.01. Cintas has a 52-week low of $165.60 and a 52-week high of $229.24. The company has a quick ratio of 1.74, a current ratio of 1.98 and a debt-to-equity ratio of 0.51.

Cintas (NASDAQ:CTAS - Get Free Report) last released its earnings results on Wednesday, March 25th. The business services provider reported $1.24 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $1.24. The firm had revenue of $2.84 billion for the quarter, compared to analyst estimates of $2.82 billion. Cintas had a return on equity of 41.47% and a net margin of 17.57%.Cintas's revenue was up 8.9% compared to the same quarter last year. During the same period in the previous year, the company earned $1.13 earnings per share. As a group, sell-side analysts predict that Cintas will post 4.89 earnings per share for the current fiscal year.

Cintas Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Friday, May 15th will be paid a $0.45 dividend. The ex-dividend date of this dividend is Friday, May 15th. This represents a $1.80 dividend on an annualized basis and a yield of 1.0%. Cintas's dividend payout ratio (DPR) is currently 50.85%.

Insiders Place Their Bets

In related news, Director Ronald W. Tysoe sold 4,666 shares of Cintas stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $178.87, for a total value of $834,607.42. Following the transaction, the director owned 22,448 shares of the company's stock, valued at approximately $4,015,273.76. This trade represents a 17.21% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 14.90% of the company's stock.

Hedge Funds Weigh In On Cintas

A number of institutional investors have recently bought and sold shares of CTAS. Norges Bank purchased a new position in Cintas in the 4th quarter worth about $923,672,000. Two Sigma Investments LP increased its stake in Cintas by 5,641.3% in the 3rd quarter. Two Sigma Investments LP now owns 1,016,671 shares of the business services provider's stock worth $208,682,000 after purchasing an additional 998,963 shares in the last quarter. SG Americas Securities LLC increased its stake in Cintas by 2,653.0% in the 4th quarter. SG Americas Securities LLC now owns 1,003,031 shares of the business services provider's stock worth $188,640,000 after purchasing an additional 966,597 shares in the last quarter. Voloridge Investment Management LLC increased its stake in Cintas by 275.2% in the 3rd quarter. Voloridge Investment Management LLC now owns 1,123,237 shares of the business services provider's stock worth $230,556,000 after purchasing an additional 823,885 shares in the last quarter. Finally, Freestone Grove Partners LP increased its stake in Cintas by 5,341.8% in the 3rd quarter. Freestone Grove Partners LP now owns 747,109 shares of the business services provider's stock worth $153,352,000 after purchasing an additional 733,380 shares in the last quarter. Hedge funds and other institutional investors own 63.46% of the company's stock.

Cintas Company Profile

Cintas Corporation NASDAQ: CTAS is a provider of business services and products focused on workplace appearance, safety and facility maintenance. The company is best known for its uniform rental and corporate apparel programs, which include rental, leasing and direct-purchase options, laundering and garment repair. Cintas markets its services to a wide range of end-users, including manufacturing, food service, healthcare, hospitality, retail and government customers.

Beyond uniforms, Cintas offers a suite of facility services and products designed to help organizations maintain clean, safe and compliant workplaces.

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