Cintas (NASDAQ:CTAS) Reaches New 52-Week Low - Here's What Happened

Key Points

• Shares of Cintas reached a new 52-week low of $165.46 (last traded about $167.82) on Tuesday, with roughly 192,230 shares changing hands.
• Analysts are mixed: the consensus rating is "Hold" with a $215.17 consensus price target, while firms have both lowered targets (Stifel to $190, Citi to $160 with a sell) and issued upgrades (Baird to outperform with a $250 target).
• Cintas reported quarterly EPS of $1.24 (meeting estimates) and revenue of $2.84 billion, up 8.9% year-over-year, and declared a $0.45 quarterly dividend ($1.80 annual, ~1.1% yield).

Shares of Cintas Corporation (NASDAQ:CTAS - Get Free Report) reached a new 52-week low on Tuesday . The company traded as low as $165.46 and last traded at $167.8160, with a volume of 192230 shares trading hands. The stock had previously closed at $166.89.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on CTAS. Stifel Nicolaus lowered their price objective on shares of Cintas from $222.00 to $190.00 and set a "hold" rating for the company in a research report on Thursday, March 26th. Robert W. Baird upgraded Cintas from a "neutral" rating to an "outperform" rating and set a $250.00 target price on the stock in a report on Wednesday, March 11th. UBS Group restated a "buy" rating on shares of Cintas in a report on Thursday, March 12th. Bank of America assumed coverage on Cintas in a report on Tuesday, February 17th. They issued a "neutral" rating and a $215.00 price target for the company. Finally, Citigroup lowered their price target on Cintas from $181.00 to $160.00 and set a "sell" rating for the company in a report on Tuesday, March 31st. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $215.17.

Cintas Stock Up 1.4%

The firm has a fifty day simple moving average of $183.59 and a 200-day simple moving average of $187.21. The company has a market capitalization of $67.74 billion, a P/E ratio of 47.91, a P/E/G ratio of 2.99 and a beta of 0.96. 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 quarterly earnings results on Wednesday, March 25th. The business services provider reported $1.24 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.24. Cintas had a return on equity of 41.47% and a net margin of 17.57%.The firm had revenue of $2.84 billion for the quarter, compared to the consensus estimate of $2.82 billion. During the same quarter last year, the business posted $1.13 EPS. The company's revenue for the quarter was up 8.9% on a year-over-year basis. On average, equities research analysts expect that Cintas Corporation will post 4.89 EPS for the current fiscal year.

Cintas Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Shareholders 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 annualized dividend and a dividend yield of 1.1%. Cintas's dividend payout ratio (DPR) is currently 50.85%.

Insider Activity

In other Cintas 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 sale, the director owned 22,448 shares of the company's stock, valued at $4,015,273.76. This trade represents a 17.21% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 14.90% of the stock is owned by corporate insiders.

Institutional Trading of Cintas

Hedge funds and other institutional investors have recently modified their holdings of the company. Brighton Jones LLC increased its position in shares of Cintas by 9.3% in the fourth 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 last quarter. Sivia Capital Partners LLC increased its position in shares of Cintas by 42.3% in the second 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 last quarter. Gamco Investors INC. ET AL acquired a new stake in shares of Cintas in the second quarter valued at about $625,000. Treasurer of the State of North Carolina increased its position in shares of Cintas by 20.3% in the second quarter. Treasurer of the State of North Carolina now owns 212,192 shares of the business services provider's stock valued at $47,291,000 after acquiring an additional 35,781 shares during the last quarter. Finally, Ieq Capital LLC increased its position in shares of Cintas by 50.2% in the second quarter. Ieq Capital LLC now owns 92,924 shares of the business services provider's stock valued at $20,710,000 after acquiring an additional 31,068 shares during the last quarter. Institutional investors and hedge funds 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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