Canopy Partners LLC Makes New Investment in Cintas Corporation (NASDAQ:CTAS)

Key Points

• Canopy Partners LLC has made a new investment in Cintas Corporation, acquiring 1,602 shares valued at approximately $329,000 during the first quarter.
• Cintas reported earnings of $1.09 EPS for the last quarter, exceeding analysts' estimates and indicating an 8% increase in quarterly revenue compared to the prior year.
• Several prominent investment firms, including Goldman Sachs and JPMorgan Chase, have given Cintas favorable ratings and raised their price targets, with a consensus target price of $224.54.

Canopy Partners LLC acquired a new position in shares of Cintas Corporation (NASDAQ:CTAS - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 1,602 shares of the business services provider's stock, valued at approximately $329,000.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Meeder Asset Management Inc. grew its position in Cintas by 239.3% in the fourth quarter. Meeder Asset Management Inc. now owns 190 shares of the business services provider's stock valued at $35,000 after acquiring an additional 134 shares during the last quarter. E Fund Management Hong Kong Co. Ltd. grew its holdings in shares of Cintas by 646.4% during the first quarter. E Fund Management Hong Kong Co. Ltd. now owns 209 shares of the business services provider's stock worth $43,000 after purchasing an additional 181 shares during the last quarter. Washington Trust Advisors Inc. bought a new stake in shares of Cintas during the first quarter worth about $46,000. Olde Wealth Management LLC bought a new stake in shares of Cintas during the first quarter worth about $55,000. Finally, Physician Wealth Advisors Inc. bought a new stake in shares of Cintas during the fourth quarter worth about $59,000. 63.46% of the stock is owned by institutional investors.

Cintas Stock Up 0.2%

Cintas stock traded up $0.45 during midday trading on Wednesday, reaching $223.13. The company's stock had a trading volume of 1,539,276 shares, compared to its average volume of 1,713,041. The company has a quick ratio of 1.82, a current ratio of 2.09 and a debt-to-equity ratio of 0.52. Cintas Corporation has a fifty-two week low of $180.78 and a fifty-two week high of $229.24. The company has a market cap of $90.10 billion, a P/E ratio of 50.60, a P/E/G ratio of 3.46 and a beta of 1.05. The business has a 50-day simple moving average of $221.39 and a 200-day simple moving average of $209.85.

Cintas (NASDAQ:CTAS - Get Free Report) last released its earnings results on Thursday, July 17th. The business services provider reported $1.09 EPS for the quarter, topping the consensus estimate of $1.07 by $0.02. Cintas had a net margin of 17.53% and a return on equity of 41.21%. The firm had revenue of $2.67 billion during the quarter, compared to analysts' expectations of $2.63 billion. During the same period in the previous year, the company earned $3.99 EPS. Cintas's revenue for the quarter was up 8.0% on a year-over-year basis. On average, research analysts expect that Cintas Corporation will post 4.31 earnings per share for the current fiscal year.

Cintas Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Friday, August 15th will be issued a dividend of $0.45 per share. This is a positive change from Cintas's previous quarterly dividend of $0.39. This represents a $1.80 dividend on an annualized basis and a yield of 0.81%. The ex-dividend date is Friday, August 15th. Cintas's payout ratio is presently 35.37%.

Analysts Set New Price Targets

A number of equities analysts have issued reports on CTAS shares. Bank of America assumed coverage on Cintas in a report on Thursday, April 10th. They set a "buy" rating and a $250.00 price target on the stock. Royal Bank Of Canada reiterated a "sector perform" rating and set a $240.00 price target (up previously from $215.00) on shares of Cintas in a research note on Monday, June 9th. Morgan Stanley upped their price objective on shares of Cintas from $213.00 to $220.00 and gave the stock an "equal weight" rating in a research report on Friday, July 18th. Redburn Atlantic cut Cintas from a "neutral" rating to a "sell" rating and set a $171.00 target price on the stock. in a research note on Thursday, May 1st. Finally, Argus upgraded Cintas to a "strong-buy" rating in a report on Wednesday, April 16th. Two research analysts have rated the stock with a sell rating, five have issued a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $224.54.

Insider Transactions at Cintas

In related news, CEO Todd M. Schneider sold 17,301 shares of the business's stock in a transaction that occurred on Monday, July 28th. The shares were sold at an average price of $220.90, for a total value of $3,821,790.90. Following the sale, the chief executive officer directly owned 622,712 shares in the company, valued at $137,557,080.80. The trade was a 2.70% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Martin Mucci acquired 1,200 shares of Cintas stock in a transaction dated Monday, July 21st. The shares were bought at an average cost of $222.55 per share, with a total value of $267,060.00. Following the completion of the purchase, the director owned 2,621 shares in the company, valued at approximately $583,303.55. This represents a 84.45% increase in their ownership of the stock. The disclosure for this purchase can be found here. 15.00% of the stock is currently owned by corporate insiders.

Cintas Company Profile

Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms.