Cibc World Market Inc. Raises Stake in Cintas Corporation $CTAS

Key Points

• Cibc World Market Inc. more than doubled its stake in Cintas in the fourth quarter, increasing holdings by 105.8% to 68,814 shares worth about $12.9 million.
• Cintas reported quarterly earnings of $1.24 EPS, matching estimates, on $2.84 billion in revenue, which topped expectations and rose 8.9% year over year.
• The company announced a quarterly dividend of $0.45 per share payable June 15, while analysts currently rate the stock a Hold on average with a price target of about $215.17.

Cibc World Market Inc. grew its stake in Cintas Corporation (NASDAQ:CTAS - Free Report) by 105.8% in the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 68,814 shares of the business services provider's stock after acquiring an additional 35,381 shares during the quarter. Cibc World Market Inc.'s holdings in Cintas were worth $12,942,000 as of its most recent SEC filing.

Other institutional investors have also modified their holdings of the company. One Capital Management LLC lifted its position in Cintas by 0.9% in the fourth quarter. One Capital Management LLC now owns 6,160 shares of the business services provider's stock valued at $1,159,000 after buying an additional 53 shares during the last quarter. Richardson Financial Services Inc. increased its position in shares of Cintas by 1.1% during the fourth quarter. Richardson Financial Services Inc. now owns 5,058 shares of the business services provider's stock valued at $951,000 after acquiring an additional 54 shares during the last quarter. Mather Group LLC. raised its stake in shares of Cintas by 1.4% in the 4th quarter. Mather Group LLC. now owns 4,381 shares of the business services provider's stock valued at $824,000 after acquiring an additional 59 shares during the period. Woodward Diversified Capital LLC raised its stake in shares of Cintas by 4.8% in the 4th quarter. Woodward Diversified Capital LLC now owns 1,288 shares of the business services provider's stock valued at $242,000 after acquiring an additional 59 shares during the period. Finally, Ausdal Financial Partners Inc. lifted its holdings in shares of Cintas by 2.8% in the 2nd quarter. Ausdal Financial Partners Inc. now owns 2,287 shares of the business services provider's stock worth $510,000 after acquiring an additional 63 shares during the last quarter. Hedge funds and other institutional investors own 63.46% of the company's stock.

Cintas Price Performance

Cintas stock opened at $179.85 on Friday. The company has a quick ratio of 1.74, a current ratio of 1.98 and a debt-to-equity ratio of 0.51. Cintas Corporation has a 52-week low of $161.16 and a 52-week high of $229.24. The firm has a market cap of $71.96 billion, a PE ratio of 50.81, a price-to-earnings-growth ratio of 2.86 and a beta of 0.94. The company's 50 day moving average is $172.59 and its two-hundred day moving average is $184.49.

Cintas (NASDAQ:CTAS - Get Free Report) last posted its quarterly earnings results on Wednesday, March 25th. The business services provider reported $1.24 EPS for the quarter, hitting the consensus estimate of $1.24. Cintas had a net margin of 17.57% and a return on equity of 41.47%. The business had revenue of $2.84 billion during the quarter, compared to the consensus estimate of $2.82 billion. During the same quarter in the previous year, the firm posted $1.13 earnings per share. The company's quarterly revenue was up 8.9% compared to the same quarter last year. On average, research analysts expect that Cintas Corporation will post 4.89 EPS for the current fiscal year.

Cintas Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Friday, May 15th will be paid a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Friday, May 15th. Cintas's payout ratio is presently 50.85%.

Insiders Place Their Bets

In other Cintas news, Director Ronald W. Tysoe sold 4,666 shares of the stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $178.87, for a total value of $834,607.42. Following the sale, the director owned 22,448 shares of the company's stock, valued at $4,015,273.76. This trade represents a 17.21% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 14.90% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several research firms recently weighed in on CTAS. UBS Group reiterated a "buy" rating on shares of Cintas in a report on Thursday, March 12th. Stifel Nicolaus decreased their price target on Cintas from $222.00 to $190.00 and set a "hold" rating on the stock in a research note on Thursday, March 26th. Weiss Ratings cut Cintas from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, April 1st. Bank of America assumed coverage on Cintas in a report on Tuesday, February 17th. They issued a "neutral" rating and a $215.00 price objective on the stock. Finally, Citigroup cut their price objective on Cintas from $181.00 to $160.00 and set a "sell" rating on the stock in a report on Tuesday, March 31st. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $215.17.

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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