Bank of America Corp DE Makes New Investment in Cintas Corporation $CTAS

Key Points

• Bank of America acquired 1.37 million Cintas shares during the second quarter, worth approximately $233.1 million and representing about 0.34% of the company.
• Cintas reported quarterly EPS of $1.29, exceeding estimates by $0.05, while revenue rose 8.9% year over year to $2.91 billion. The company also increased its quarterly dividend to $0.52 per share.
• Institutional investors own 63.46% of Cintas, and analysts maintain a “Moderate Buy” consensus with an average price target of $212.31.

Bank of America Corp DE acquired a new position in Cintas Corporation (NASDAQ:CTAS - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 1,370,595 shares of the business services provider's stock, valued at approximately $233,111,000. Bank of America Corp DE owned about 0.34% of Cintas at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Caisse de depot et placement du Quebec bought a new position in shares of Cintas during the 2nd quarter worth $21,295,000. Man Group plc purchased a new stake in Cintas during the second quarter valued at about $119,083,000. Invst LLC bought a new position in Cintas during the second quarter worth about $592,000. First Bancorp Inc ME bought a new position in Cintas during the second quarter worth about $39,000. Finally, Jupiter Topco LLC purchased a new position in shares of Cintas in the second quarter worth about $6,661,000. 63.46% of the stock is owned by institutional investors.

Cintas Stock Up 0.3%

CTAS stock opened at $199.46 on Thursday. The company's 50 day moving average is $201.14 and its 200 day moving average is $185.72. The stock has a market cap of $79.82 billion, a price-to-earnings ratio of 53.33, a price-to-earnings-growth ratio of 3.21 and a beta of 0.91. The company has a current ratio of 1.43, a quick ratio of 1.27 and a debt-to-equity ratio of 0.28. Cintas Corporation has a 1-year low of $161.16 and a 1-year high of $219.16.

Cintas (NASDAQ:CTAS - Get Free Report) last announced its earnings results on Wednesday, July 15th. The business services provider reported $1.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.24 by $0.05. Cintas had a net margin of 17.75% and a return on equity of 42.05%. The business had revenue of $2.91 billion during the quarter, compared to analyst estimates of $2.87 billion. During the same period in the previous year, the business posted $1.09 earnings per share. Cintas's revenue for the quarter was up 8.9% on a year-over-year basis. Cintas has set its FY 2027 guidance at 5.360-5.500 EPS. Sell-side analysts predict that Cintas Corporation will post 5.49 EPS for the current fiscal year.

Cintas Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Friday, August 14th were given a $0.52 dividend. This represents a $2.08 annualized dividend and a yield of 1.0%. This is a boost from Cintas's previous quarterly dividend of $0.45. The ex-dividend date was Friday, August 14th. Cintas's dividend payout ratio (DPR) is presently 55.61%.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on CTAS. Royal Bank Of Canada reissued a "sector perform" rating and issued a $206.00 price target on shares of Cintas in a research report on Thursday, July 16th. Truist Financial reduced their price objective on shares of Cintas from $255.00 to $225.00 and set a "buy" rating for the company in a research note on Monday, June 15th. UBS Group reissued a "buy" rating and set a $230.00 target price (up from $228.00) on shares of Cintas in a report on Thursday, July 16th. The Goldman Sachs Group restated a "buy" rating and set a $231.00 target price on shares of Cintas in a research report on Wednesday, July 15th. Finally, Sanford C. Bernstein reaffirmed a "market perform" rating on shares of Cintas in a report on Thursday, September 10th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $212.31.

About Cintas

Cintas Corporation is a provider of workplace products and services for businesses across North America. The company helps organizations manage employee appearance, workplace cleanliness, safety, and compliance through a range of recurring service programs.

Its offerings include uniform rental and workwear, branded apparel, entrance mats, restroom supplies, and facility cleaning services. Cintas also provides first-aid and safety products, training, and fire protection services, including inspection and maintenance programs for fire extinguishers, sprinkler systems, alarms, and related equipment.

Headquartered in Mason, Ohio, Cintas traces its roots to a family-operated industrial laundry business established by Richard T.

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