Cintas (NASDAQ:CTAS) Reaches New 12-Month Low - What's Next?

Key Points

• Cintas hit a new 52-week low during intraday trading, falling to as low as $164.60 and last changing hands near $165.58, down about 1.7% on the day.
• Despite the stock weakness, analysts still see upside: the consensus rating is “Hold,” but the average price target is $215.17, and several firms have maintained or upgraded their views.
• The company recently posted solid quarterly results and a dividend, with earnings matching estimates, revenue beating expectations, and a quarterly dividend of $0.45 per share set to be paid in June.

Cintas Corporation (NASDAQ:CTAS - Get Free Report) reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $164.60 and last traded at $165.5750, with a volume of 76172 shares trading hands. The stock had previously closed at $166.97.

Wall Street Analysts Forecast Growth

CTAS has been the subject of a number of analyst reports. Bank of America initiated coverage on shares of Cintas in a report on Tuesday, February 17th. They set a "neutral" rating and a $215.00 target price for the company. Stifel Nicolaus dropped their target price on shares of Cintas from $222.00 to $190.00 and set a "hold" rating for the company in a report on Thursday, March 26th. Wells Fargo & Company upgraded shares of Cintas from a "cautious" rating to an "overweight" rating and increased their target price for the stock from $205.00 to $245.00 in a report on Wednesday, January 14th. UBS Group reiterated a "buy" rating on shares of Cintas in a report on Thursday, March 12th. Finally, Argus raised shares of Cintas to a "strong-buy" rating in a research note on Wednesday, January 21st. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Cintas currently has a consensus rating of "Hold" and an average price target of $215.17.

Cintas Trading Down 1.7%

The company has a market cap of $65.64 billion, a P/E ratio of 46.33, a PEG ratio of 2.94 and a beta of 0.96. The stock's 50 day moving average is $181.83 and its 200-day moving average is $186.85. The company has a current ratio of 1.98, a quick ratio of 1.74 and a debt-to-equity ratio of 0.51.

Cintas (NASDAQ:CTAS - Get Free Report) last announced its quarterly earnings results on Wednesday, March 25th. The business services provider reported $1.24 earnings per share for the quarter, meeting the consensus estimate of $1.24. Cintas had a net margin of 17.57% and a return on equity of 41.47%. The company had revenue of $2.84 billion during the quarter, compared to the consensus estimate of $2.82 billion. During the same quarter last year, the firm earned $1.13 earnings per share. The firm's quarterly revenue was up 8.9% compared to the same quarter last year. Research analysts anticipate that Cintas Corporation will post 4.89 earnings per share for the current fiscal year.

Cintas Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Friday, May 15th will be given a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Friday, May 15th. Cintas's payout ratio is 50.85%.

Insider Buying and Selling

In other Cintas news, Director Ronald W. Tysoe sold 4,666 shares of Cintas stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $178.87, for a total value of $834,607.42. Following the completion of the sale, the director owned 22,448 shares of the company's stock, valued at approximately $4,015,273.76. The trade was a 17.21% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 14.90% of the company's stock.

Institutional Investors Weigh In On Cintas

Large investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC grew its position in shares of Cintas by 9.3% during the 4th quarter. Brighton Jones LLC now owns 1,268 shares of the business services provider's stock valued at $232,000 after acquiring an additional 108 shares during the period. Sivia Capital Partners LLC grew its position in shares of Cintas by 42.3% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,441 shares of the business services provider's stock valued at $321,000 after acquiring an additional 428 shares during the period. Gamco Investors INC. ET AL bought a new position in shares of Cintas during the 2nd quarter valued at approximately $625,000. Treasurer of the State of North Carolina increased its holdings in Cintas by 20.3% in the 2nd quarter. Treasurer of the State of North Carolina now owns 212,192 shares of the business services provider's stock worth $47,291,000 after acquiring an additional 35,781 shares in the last quarter. Finally, Ieq Capital LLC increased its holdings in Cintas by 50.2% in the 2nd quarter. Ieq Capital LLC now owns 92,924 shares of the business services provider's stock worth $20,710,000 after acquiring an additional 31,068 shares in the last quarter. 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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