Arwa LLC Takes Position in Cintas Corporation $CTAS

Key Points

• Arwa LLC initiated a new position in Cintas during the fourth quarter, buying 6,778 shares valued at about $1.275 million.
• Other institutional investors also added to Cintas, and hedge funds and other institutions now own 63.46% of the company’s stock.
• Cintas recently reported earnings in line with expectations, posting $1.24 EPS on revenue of $2.84 billion, while also paying a quarterly dividend of $0.45 per share.

Arwa LLC bought a new position in Cintas Corporation (NASDAQ:CTAS - Free Report) during the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 6,778 shares of the business services provider's stock, valued at approximately $1,275,000.

Several other hedge funds have also recently modified their holdings of the business. State Street Corp boosted its holdings in shares of Cintas by 1.4% in the 4th quarter. State Street Corp now owns 15,311,491 shares of the business services provider's stock valued at $2,879,632,000 after buying an additional 210,477 shares in the last quarter. Geode Capital Management LLC grew its position in Cintas by 1.1% during the fourth quarter. Geode Capital Management LLC now owns 9,293,485 shares of the business services provider's stock valued at $1,746,453,000 after buying an additional 97,220 shares during the period. Norges Bank purchased a new position in shares of Cintas during the 4th quarter valued at approximately $923,672,000. Morgan Stanley lifted its holdings in Cintas by 0.8% during the fourth quarter. Morgan Stanley now owns 4,393,116 shares of the business services provider's stock valued at $826,214,000 after purchasing an additional 36,666 shares in the last quarter. Finally, Nordea Investment Management AB lifted its holdings in Cintas by 6.2% in the 4th quarter. Nordea Investment Management AB now owns 2,729,394 shares of the business services provider's stock valued at $517,466,000 after purchasing an additional 158,785 shares in the last quarter. Hedge funds and other institutional investors own 63.46% of the company's stock.

Cintas Price Performance

CTAS stock opened at $170.85 on Friday. The stock has a market cap of $68.36 billion, a PE ratio of 48.26, a price-to-earnings-growth ratio of 2.72 and a beta of 0.94. 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 Corporation has a fifty-two week low of $161.16 and a fifty-two week high of $226.75. The firm's 50-day simple moving average is $173.50 and its 200 day simple moving average is $183.88.

Cintas (NASDAQ:CTAS - Get Free Report) last released its quarterly earnings results on Wednesday, March 25th. The business services provider reported $1.24 EPS for the quarter, hitting analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $2.82 billion. During the same period in the previous year, the firm earned $1.13 EPS. Cintas's revenue was up 8.9% on a year-over-year basis. As a group, sell-side analysts predict that Cintas Corporation will post 4.89 EPS for the current year.

Cintas Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Friday, May 15th were paid a $0.45 dividend. The ex-dividend date of this dividend was Friday, May 15th. This represents a $1.80 dividend on an annualized basis and a yield of 1.1%. Cintas's dividend payout ratio (DPR) is currently 50.85%.

Insider Buying and Selling at Cintas

In other news, Director Ronald W. Tysoe sold 4,666 shares of the 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 directly owned 22,448 shares of the company's stock, valued at $4,015,273.76. This represents a 17.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 14.90% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of brokerages have commented on CTAS. Citigroup reduced their target price on shares of Cintas from $181.00 to $160.00 and set a "sell" rating on the stock in a research note on Tuesday, March 31st. Truist Financial decreased their target price on Cintas from $255.00 to $225.00 and set a "buy" rating for the company in a report on Monday, June 15th. Stifel Nicolaus reduced their target price on shares of Cintas from $222.00 to $190.00 and set a "hold" rating on the stock in a 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 research note on Wednesday, March 11th. Finally, UBS Group restated a "buy" rating on shares of Cintas in a research report on Thursday, March 12th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $215.92.

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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