Charles Schwab Investment Management Inc. Raises Position in Cintas Corporation (NASDAQ:CTAS)

Key Points

• Charles Schwab Investment Management Inc. increased its stake in Cintas Corporation by 1.8%, owning approximately 1,978,355 shares valued at $406.6 million as of the end of the first quarter.
• Cintas Corporation reported a quarterly earnings per share of $1.09, exceeding estimates, and saw an 8% increase in revenue compared to the previous year.
• The company has announced a dividend increase from $0.39 to $0.45 per share, which will be paid to stockholders of record on August 15th, reflecting a dividend yield of 0.8%.

Charles Schwab Investment Management Inc. lifted its holdings in Cintas Corporation (NASDAQ:CTAS - Free Report) by 1.8% during the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 1,978,355 shares of the business services provider's stock after acquiring an additional 35,604 shares during the period. Charles Schwab Investment Management Inc. owned approximately 0.49% of Cintas worth $406,611,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also recently made changes to their positions in the business. Pinnacle Wealth Management Advisory Group LLC boosted its position in Cintas by 3.9% during the first quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,256 shares of the business services provider's stock valued at $258,000 after acquiring an additional 47 shares during the last quarter. MJP Associates Inc. ADV boosted its position in Cintas by 2.1% during the fourth quarter. MJP Associates Inc. ADV now owns 2,412 shares of the business services provider's stock valued at $441,000 after acquiring an additional 50 shares during the last quarter. Kathmere Capital Management LLC boosted its position in Cintas by 4.1% during the first quarter. Kathmere Capital Management LLC now owns 1,293 shares of the business services provider's stock valued at $266,000 after acquiring an additional 51 shares during the last quarter. Pinnacle Associates Ltd. boosted its position in Cintas by 4.1% during the first quarter. Pinnacle Associates Ltd. now owns 1,291 shares of the business services provider's stock valued at $265,000 after acquiring an additional 51 shares during the last quarter. Finally, Johnson Financial Group Inc. boosted its position in Cintas by 7.7% during the fourth quarter. Johnson Financial Group Inc. now owns 728 shares of the business services provider's stock valued at $146,000 after acquiring an additional 52 shares during the last quarter. Institutional investors and hedge funds own 63.46% of the company's stock.

Cintas Stock Down 0.3%

NASDAQ CTAS traded down $0.57 during trading hours on Tuesday, hitting $223.31. The company's stock had a trading volume of 1,399,238 shares, compared to its average volume of 1,691,793. Cintas Corporation has a 52 week low of $180.78 and a 52 week high of $229.24. The company has a market capitalization of $89.99 billion, a PE ratio of 50.64, a price-to-earnings-growth ratio of 3.90 and a beta of 1.03. The company has a current ratio of 2.09, a quick ratio of 1.82 and a debt-to-equity ratio of 0.52. The company's 50-day simple moving average is $221.32 and its two-hundred day simple moving average is $211.62.

Cintas (NASDAQ:CTAS - Get Free Report) last posted 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 for the quarter, compared to analysts' expectations of $2.63 billion. During the same quarter last year, the firm earned $3.99 EPS. The company's quarterly revenue was up 8.0% compared to the same quarter last year. Research analysts anticipate that Cintas Corporation will post 4.31 EPS for the current fiscal year.

Cintas Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Friday, August 15th will be paid a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Friday, August 15th. This is a positive change from Cintas's previous quarterly dividend of $0.39. Cintas's dividend payout ratio (DPR) is presently 35.37%.

Insider Buying and Selling

In related news, CEO Todd M. Schneider sold 17,301 shares of Cintas 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 owned 622,712 shares of the company's stock, valued at approximately $137,557,080.80. The trade was a 2.70% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Martin Mucci purchased 1,200 shares of the stock in a transaction that occurred on Monday, July 21st. The stock was bought at an average cost of $222.55 per share, for a total transaction of $267,060.00. Following the acquisition, the director directly owned 2,621 shares in the company, valued at $583,303.55. This trade represents a 84.45% increase in their position. The disclosure for this purchase can be found here. 15.00% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

CTAS has been the topic of a number of research analyst reports. JPMorgan Chase & Co. initiated coverage on shares of Cintas in a research report on Monday, July 14th. They set an "overweight" rating and a $239.00 price objective on the stock. Morgan Stanley increased 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. Royal Bank Of Canada reissued a "sector perform" rating and set a $240.00 price objective (up previously from $215.00) on shares of Cintas in a research report on Monday, June 9th. Robert W. Baird increased their price objective on shares of Cintas from $227.00 to $230.00 and gave the stock a "neutral" rating in a research report on Friday, July 18th. Finally, Redburn Atlantic downgraded shares of Cintas from a "neutral" rating to a "sell" rating and set a $171.00 price target for the company. in a research report on Thursday, May 1st. Two equities research analysts have rated the stock with a sell rating, five have given a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus 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.