Baxter Bros Inc. Buys New Position in Cintas Corporation $CTAS

Key Points

• Baxter Bros Inc. acquired 8,800 Cintas shares in the second quarter, worth approximately $1.5 million. Institutional investors collectively own 63.46% of CTAS.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $212.31; Bank of America upgraded the stock to “buy” and raised its target to $230.
• Cintas beat quarterly earnings and revenue estimates, reporting $1.29 in EPS and $2.91 billion in revenue, while increasing its quarterly dividend to $0.52 per share.

Baxter Bros Inc. acquired a new position in shares of Cintas Corporation (NASDAQ:CTAS - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 8,800 shares of the business services provider's stock, valued at approximately $1,497,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Riverbridge Partners LLC boosted its stake in Cintas by 7.7% during the first quarter. Riverbridge Partners LLC now owns 229,158 shares of the business services provider's stock valued at $38,760,000 after buying an additional 16,437 shares during the last quarter. Oppenheimer Asset Management Inc. purchased a new position in Cintas during the 2nd quarter valued at approximately $4,972,000. Summit Global Investments bought a new stake in Cintas in the 2nd quarter worth approximately $950,000. SEB Asset Management AB bought a new stake in Cintas in the 1st quarter worth approximately $22,366,000. Finally, Northwestern Mutual Wealth Management Co. raised its holdings in shares of Cintas by 2,286.3% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 736,620 shares of the business services provider's stock worth $138,536,000 after acquiring an additional 705,751 shares in the last quarter. 63.46% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have commented on CTAS. Weiss Ratings raised shares of Cintas from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, July 10th. Robert W. Baird boosted their target price on Cintas from $200.00 to $214.00 and gave the company an "outperform" rating in a research report on Thursday, July 16th. UBS Group restated a "buy" rating and issued a $230.00 price target (up from $228.00) on shares of Cintas in a research report on Thursday, July 16th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $206.00 price objective on shares of Cintas in a research note on Thursday, July 16th. Finally, Bank of America upgraded shares of Cintas from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $200.00 to $230.00 in a research report on Thursday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $212.31.

Cintas Price Performance

Shares of CTAS stock opened at $199.52 on Monday. The stock has a 50 day moving average price of $188.85 and a 200 day moving average price of $184.65. Cintas Corporation has a 52-week low of $161.16 and a 52-week high of $221.36. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.27 and a current ratio of 1.43. The firm has a market capitalization of $79.84 billion, a P/E ratio of 53.35, a P/E/G ratio of 3.22 and a beta of 0.91.

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

Cintas Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Friday, August 14th will be issued a $0.52 dividend. The ex-dividend date is Friday, August 14th. This is a boost from Cintas's previous quarterly dividend of $0.45. This represents a $2.08 dividend on an annualized basis and a dividend yield of 1.0%. Cintas's dividend payout ratio (DPR) is currently 55.61%.

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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