Cintas (NASDAQ:CTAS) Hits New 52-Week Low - Should You Sell?

Key Points

• Cintas hit a new 52-week low, trading as low as $177.53 (last $178.13) with volume ~2.33M shares, while its 50-day and 200-day moving averages (~$194.42 and $192.08) remain well above the current price.
• Analysts are mixed but overall optimistic: consensus rating is a “Moderate Buy” with an average price target of $220.25, ranging from sell opinions (Citigroup $181) to bullish targets (Robert W. Baird $250).
• Fundamentals show a large, profitable company (market cap $71.2B) with a high valuation (P/E ~51.9), a quarterly dividend of $0.45 (1.0% yield) and a payout ratio of ~52%, and institutions own about 63.5% of the stock.

Cintas Corporation (NASDAQ:CTAS - Get Free Report) shares hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $177.53 and last traded at $178.13, with a volume of 2327964 shares trading hands. The stock had previously closed at $181.21.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. UBS Group reissued a "buy" rating on shares of Cintas in a report on Thursday, March 12th. Robert W. Baird raised shares of Cintas from a "neutral" rating to an "outperform" rating and set a $250.00 target price on the stock in a research report on Wednesday, March 11th. Morgan Stanley cut their price target on shares of Cintas from $220.00 to $210.00 and set an "equal weight" rating on the stock in a research note on Wednesday, December 17th. Citigroup reissued a "sell" rating and issued a $181.00 price target (up from $176.00) on shares of Cintas in a research report on Monday, December 22nd. Finally, Weiss Ratings upgraded shares of Cintas from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, March 17th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Cintas presently has an average rating of "Moderate Buy" and an average target price of $220.25.

Cintas Price Performance

The company has a quick ratio of 1.49, a current ratio of 1.71 and a debt-to-equity ratio of 0.54. The firm has a market capitalization of $71.23 billion, a price-to-earnings ratio of 51.93, a P/E/G ratio of 3.27 and a beta of 0.95. The company has a fifty day moving average price of $194.42 and a two-hundred day moving average price of $192.08.

Cintas Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, March 13th. Investors of record on Friday, February 13th were paid a dividend of $0.45 per share. The ex-dividend date was Friday, February 13th. This represents a $1.80 dividend on an annualized basis and a yield of 1.0%. Cintas's dividend payout ratio is currently 52.48%.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Beacon Investment Advisors LLC boosted its stake in shares of Cintas by 3.2% during the second quarter. Beacon Investment Advisors LLC now owns 1,725 shares of the business services provider's stock worth $381,000 after buying an additional 53 shares during the period. One Capital Management LLC increased its position in Cintas by 0.9% in the 4th quarter. One Capital Management LLC now owns 6,160 shares of the business services provider's stock valued at $1,159,000 after acquiring an additional 53 shares during the period. CreativeOne Wealth LLC increased its position in Cintas by 0.3% in the 2nd quarter. CreativeOne Wealth LLC now owns 16,697 shares of the business services provider's stock valued at $3,721,000 after acquiring an additional 54 shares during the period. Richardson Financial Services Inc. raised its stake in Cintas by 1.1% during the 4th quarter. Richardson Financial Services Inc. now owns 5,058 shares of the business services provider's stock valued at $951,000 after acquiring an additional 54 shares during the last quarter. Finally, Woodward Diversified Capital LLC raised its stake in Cintas by 4.7% during the 3rd quarter. Woodward Diversified Capital LLC now owns 1,229 shares of the business services provider's stock valued at $252,000 after acquiring an additional 55 shares during the last quarter. 63.46% of the stock is currently owned by institutional investors and hedge funds.

About Cintas

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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