Carderock Capital Management Inc. Cuts Holdings in Cintas Corporation $CTAS

Key Points

• Carderock Capital Management Inc. reduced its stake in Cintas Corporation by 10.8%, selling 5,490 shares and now holds 45,464 shares worth approximately $10.1 million.
• Cintas recently reported a $1.09 EPS for the quarter, exceeding expectations of $1.07, with a year-over-year revenue growth of 8.0%.
• The company announced an increase in its quarterly dividend to $0.45 per share, a rise from the previous dividend of $0.39, signaling confidence in ongoing profitability.

Carderock Capital Management Inc. reduced its holdings in shares of Cintas Corporation (NASDAQ:CTAS - Free Report) by 10.8% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 45,464 shares of the business services provider's stock after selling 5,490 shares during the period. Cintas makes up 2.6% of Carderock Capital Management Inc.'s holdings, making the stock its 7th largest position. Carderock Capital Management Inc.'s holdings in Cintas were worth $10,133,000 as of its most recent SEC filing.

Several other hedge funds also recently added to or reduced their stakes in the business. Moody National Bank Trust Division acquired a new position in Cintas during the 2nd quarter valued at about $202,000. Rockland Trust Co. increased its holdings in shares of Cintas by 5.4% in the second quarter. Rockland Trust Co. now owns 1,575 shares of the business services provider's stock valued at $351,000 after purchasing an additional 80 shares during the period. Contravisory Investment Management Inc. increased its holdings in shares of Cintas by 0.5% in the second quarter. Contravisory Investment Management Inc. now owns 54,228 shares of the business services provider's stock valued at $12,086,000 after purchasing an additional 266 shares during the period. Fulton Bank N.A. increased its holdings in shares of Cintas by 2.3% in the second quarter. Fulton Bank N.A. now owns 20,291 shares of the business services provider's stock valued at $4,522,000 after purchasing an additional 453 shares during the period. Finally, Longboard Asset Management LP acquired a new position in shares of Cintas in the second quarter valued at about $239,000. 63.46% of the stock is owned by institutional investors and hedge funds.

Cintas Price Performance

CTAS stock traded down $1.99 on Tuesday, reaching $200.60. The company had a trading volume of 342,090 shares, compared to its average volume of 1,736,244. Cintas Corporation has a 1 year low of $180.78 and a 1 year high of $229.24. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.82 and a current ratio of 2.09. The company's fifty day moving average is $214.09 and its 200 day moving average is $212.73. The company has a market cap of $80.84 billion, a P/E ratio of 45.52, a PEG ratio of 3.45 and a beta of 1.01.

Cintas (NASDAQ:CTAS - Get Free Report) last released its quarterly earnings data on Thursday, July 17th. The business services provider reported $1.09 EPS for the quarter, topping analysts' consensus estimates of $1.07 by $0.02. The business had revenue of $2.67 billion during the quarter, compared to the consensus estimate of $2.63 billion. Cintas had a return on equity of 41.21% and a net margin of 17.53%.The business's revenue for the quarter was up 8.0% on a year-over-year basis. During the same period in the prior year, the firm posted $3.99 EPS. Cintas has set its FY 2026 guidance at 4.710-4.85 EPS. On average, research analysts forecast that Cintas Corporation will post 4.31 earnings per share for the current year.

Cintas Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Friday, August 15th were paid a dividend of $0.45 per share. This is a boost from Cintas's previous quarterly dividend of $0.39. This represents a $1.80 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Friday, August 15th. Cintas's payout ratio is 40.82%.

Insider Activity

In other news, CEO Todd M. Schneider sold 17,301 shares of the stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $220.90, for a total transaction of $3,821,790.90. Following the transaction, the chief executive officer owned 622,712 shares of the company's stock, valued at approximately $137,557,080.80. This trade represents a 2.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Martin Mucci purchased 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, for a total transaction of $267,060.00. Following the transaction, the director directly owned 2,621 shares of the company's stock, valued at approximately $583,303.55. The trade was a 84.45% increase in their position. The disclosure for this purchase can be found here. Insiders own 14.90% of the company's stock.

Analyst Ratings Changes

A number of brokerages have recently commented on CTAS. JPMorgan Chase & Co. started coverage on Cintas in a research note on Monday, July 14th. They issued an "overweight" rating and a $239.00 target price on the stock. Robert W. Baird lifted their price objective on Cintas from $227.00 to $230.00 and gave the stock a "neutral" rating in a research report on Friday, July 18th. The Goldman Sachs Group lifted their price objective on Cintas from $233.00 to $257.00 and gave the stock a "buy" rating in a research report on Wednesday, July 2nd. Wells Fargo & Company raised Cintas from an "underweight" rating to an "equal weight" rating and raised their target price for the stock from $196.00 to $221.00 in a research note on Tuesday, July 1st. Finally, Royal Bank Of Canada reissued a "sector perform" rating and set a $240.00 target price on shares of Cintas in a research note on Thursday, August 21st. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Cintas has an average rating of "Hold" and an average target price of $224.54.

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.