BlackRock Inc. Makes New Investment in Cintas Corporation $CTAS

Key Points

• BlackRock acquired 26.6 million Cintas shares during the second quarter, worth approximately $4.52 billion and representing a 6.64% stake. Institutional investors collectively own 63.46% of the company.
• Cintas exceeded quarterly expectations, reporting $1.29 in earnings per share and $2.91 billion in revenue, with revenue rising 8.9% year over year. Analysts maintain a “Moderate Buy” consensus and a $212.31 average price target.
• Cintas increased its quarterly dividend from $0.45 to $0.52 per share, equating to an annualized dividend of $2.08 and a 1.0% yield.

BlackRock Inc. acquired a new stake in shares of Cintas Corporation (NASDAQ:CTAS - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm acquired 26,578,230 shares of the business services provider's stock, valued at approximately $4,520,425,000. BlackRock Inc. owned approximately 6.64% of Cintas as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also modified their holdings of the stock. Nemes Rush Group LLC purchased a new stake in Cintas during the 4th quarter valued at about $25,000. First United Bank & Trust purchased a new position in Cintas in the 1st quarter worth approximately $25,000. Whipplewood Advisors LLC boosted its holdings in shares of Cintas by 1,712.5% during the 1st quarter. Whipplewood Advisors LLC now owns 145 shares of the business services provider's stock worth $25,000 after purchasing an additional 137 shares during the last quarter. Swiss RE Ltd. acquired a new position in shares of Cintas during the 4th quarter worth approximately $25,000. Finally, Camelot Portfolios LLC purchased a new stake in shares of Cintas in the fourth quarter valued at approximately $26,000. Hedge funds and other institutional investors own 63.46% of the company's stock.

Cintas Stock Performance

NASDAQ:CTAS opened at $199.45 on Wednesday. The company has a current ratio of 1.43, a quick ratio of 1.27 and a debt-to-equity ratio of 0.28. The company has a market capitalization of $79.81 billion, a P/E ratio of 53.33, a price-to-earnings-growth ratio of 3.22 and a beta of 0.91. The firm has a 50-day moving average price of $189.72 and a two-hundred day moving average price of $184.77. Cintas Corporation has a twelve month low of $161.16 and a twelve month high of $219.87.

Cintas (NASDAQ:CTAS - Get Free Report) last posted its quarterly earnings results 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 during the quarter, compared to analysts' expectations of $2.87 billion. During the same quarter in the previous year, the business earned $1.09 EPS. The firm's 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, research analysts expect that Cintas Corporation will post 5.49 earnings per share for the current fiscal year.

Cintas Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, August 14th will be paid a $0.52 dividend. The ex-dividend date is Friday, August 14th. This is a positive change 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 is currently 55.61%.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on CTAS. Robert W. Baird upped their price target on Cintas from $200.00 to $214.00 and gave the company an "outperform" rating in a research note on Thursday, July 16th. Argus upgraded shares of Cintas to a "strong-buy" rating in a research report on Friday, July 17th. UBS Group reissued a "buy" rating and issued a $230.00 price target (up from $228.00) on shares of Cintas in a research note on Thursday, July 16th. Wells Fargo & Company reissued an "overweight" rating and issued a $250.00 target price (up from $245.00) on shares of Cintas in a research report on Thursday, July 16th. Finally, Truist Financial decreased their price target on Cintas from $255.00 to $225.00 and set a "buy" rating on the stock in a research note on Monday, June 15th. 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 given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $212.31.

Cintas 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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