Adage Capital Partners GP L.L.C. Trims Stock Position in Cintas Corporation $CTAS

Key Points

• Adage Capital Partners GP L.L.C. has reduced its stake in Cintas Corporation by 1.7% during the first quarter, now holding approximately $56.6 million worth of shares.
• Cintas recently increased its quarterly dividend from $0.39 to $0.45 per share, reflecting a new annualized yield of 0.9%.
• Several analysts have revised their price targets for Cintas, with Goldman Sachs raising it to $257, maintaining a "buy" rating on the stock.

Adage Capital Partners GP L.L.C. decreased its holdings in Cintas Corporation (NASDAQ:CTAS - Free Report) by 1.7% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 275,564 shares of the business services provider's stock after selling 4,641 shares during the quarter. Adage Capital Partners GP L.L.C. owned about 0.07% of Cintas worth $56,637,000 as of its most recent filing with the SEC.

Other large investors have also recently bought and sold shares of the company. WPG Advisers LLC purchased a new position in Cintas in the first quarter worth $27,000. Saudi Central Bank purchased a new position in Cintas in the first quarter worth $29,000. Stone House Investment Management LLC purchased a new position in Cintas in the first quarter worth $41,000. E Fund Management Hong Kong Co. Ltd. raised its position in Cintas by 646.4% in 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 acquiring an additional 181 shares in the last quarter. Finally, Washington Trust Advisors Inc. purchased a new position in Cintas in the first quarter worth $46,000. Hedge funds and other institutional investors own 63.46% of the company's stock.

Insider Activity at Cintas

In related news, Director Ronald W. Tysoe sold 5,084 shares of the stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $223.47, for a total transaction of $1,136,121.48. Following the transaction, the director directly owned 21,945 shares in the company, valued at approximately $4,904,049.15. This represents a 18.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Todd M. Schneider sold 17,301 shares of the stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $220.90, for a total value of $3,821,790.90. Following the transaction, the chief executive officer owned 622,712 shares in the company, valued at $137,557,080.80. This trade represents a 2.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 15.00% of the company's stock.

Analyst Ratings Changes

Several research analysts have issued reports on the company. UBS Group increased their price objective on Cintas from $240.00 to $255.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. JPMorgan Chase & Co. began coverage on Cintas in a report on Monday, July 14th. They issued an "overweight" rating and a $239.00 target price on the stock. Morgan Stanley upped their target price on Cintas from $213.00 to $220.00 and gave the company an "equal weight" rating in a report on Friday, July 18th. Robert W. Baird upped their target price on Cintas from $227.00 to $230.00 and gave the company a "neutral" rating in a report on Friday, July 18th. Finally, Wells Fargo & Company raised Cintas from an "underweight" rating to an "equal weight" rating and upped their target price for the company from $196.00 to $221.00 in a report on Tuesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $224.54.

Cintas Price Performance

Shares of CTAS traded down $2.34 during trading hours on Friday, reaching $204.50. 1,413,719 shares of the company traded hands, compared to its average volume of 1,760,061. The company has a quick ratio of 1.82, a current ratio of 2.09 and a debt-to-equity ratio of 0.52. The stock has a market capitalization of $82.41 billion, a PE ratio of 46.37, a price-to-earnings-growth ratio of 3.57 and a beta of 1.01. Cintas Corporation has a fifty-two week low of $180.78 and a fifty-two week high of $229.24. The stock has a fifty day simple moving average of $217.78 and a 200 day simple moving average of $212.89.

Cintas (NASDAQ:CTAS - Get Free Report) last posted its quarterly earnings data on Thursday, July 17th. The business services provider reported $1.09 EPS for the quarter, beating analysts' consensus estimates of $1.07 by $0.02. The business had revenue of $2.67 billion for the quarter, compared to analyst estimates 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% compared to the same quarter last year. During the same quarter last year, the company earned $3.99 earnings per share. Cintas has set its FY 2026 guidance at 4.710-4.85 EPS. As a group, research analysts predict that Cintas Corporation will post 4.31 EPS for the current fiscal year.

Cintas Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Friday, August 15th will be paid a dividend of $0.45 per share. The ex-dividend date of this dividend is Friday, August 15th. This is an increase from Cintas's previous quarterly dividend of $0.39. This represents a $1.80 dividend on an annualized basis and a dividend yield of 0.9%. Cintas's dividend payout ratio is 40.82%.

About Cintas

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.