Cintas Corporation $CTAS Shares Sold by Bank of America Corp DE

Key Points

• Bank of America reduced its Cintas stake by 16% during the first quarter, selling 254,489 shares and retaining 1.34 million shares valued at approximately $226 million. Institutional investors and hedge funds collectively own 63.46% of CTAS.
• Cintas reported better-than-expected quarterly results, with adjusted earnings of $1.29 per share and revenue of $2.91 billion, up 8.9% year over year. The company also raised its quarterly dividend to $0.52 per share, representing a 1.0% annualized yield.
• Analyst sentiment remains positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $212.31; several firms recently raised or reiterated bullish ratings and targets near $230.

Bank of America Corp DE reduced its stake in Cintas Corporation (NASDAQ:CTAS - Free Report) by 16.0% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 1,336,434 shares of the business services provider's stock after selling 254,489 shares during the quarter. Bank of America Corp DE owned approximately 0.33% of Cintas worth $226,044,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of CTAS. Brighton Jones LLC grew its holdings in shares of Cintas by 9.3% in the fourth quarter. Brighton Jones LLC now owns 1,268 shares of the business services provider's stock valued at $232,000 after purchasing an additional 108 shares during the period. Sivia Capital Partners LLC raised its stake in Cintas by 42.3% during the second quarter. Sivia Capital Partners LLC now owns 1,441 shares of the business services provider's stock worth $321,000 after purchasing an additional 428 shares during the period. Gamco Investors INC. ET AL purchased a new position in Cintas during the second quarter worth about $625,000. Treasurer of the State of North Carolina boosted its holdings in Cintas by 20.3% in the 2nd quarter. Treasurer of the State of North Carolina now owns 212,192 shares of the business services provider's stock valued at $47,291,000 after purchasing an additional 35,781 shares during the last quarter. Finally, Ieq Capital LLC boosted its holdings in Cintas by 50.2% in the 2nd quarter. Ieq Capital LLC now owns 92,924 shares of the business services provider's stock valued at $20,710,000 after purchasing an additional 31,068 shares during the last quarter. 63.46% of the stock is owned by institutional investors and hedge funds.

Cintas Price Performance

CTAS opened at $204.01 on Tuesday. The stock's 50-day moving average price is $183.73 and its 200 day moving average price is $184.14. Cintas Corporation has a 12-month low of $161.16 and a 12-month high of $226.75. The firm has a market cap of $81.64 billion, a price-to-earnings ratio of 54.55, a PEG ratio of 3.30 and a beta of 0.91. The company has a current ratio of 1.43, a quick ratio of 1.27 and a debt-to-equity ratio of 0.28.

Cintas (NASDAQ:CTAS - Get Free Report) last released its earnings results on Wednesday, July 15th. The business services provider reported $1.29 earnings per share for the quarter, beating the consensus estimate of $1.24 by $0.05. Cintas had a return on equity of 42.05% and a net margin of 17.75%.The company had revenue of $2.91 billion during the quarter, compared to the consensus estimate of $2.87 billion. During the same period in the previous year, the company posted $1.09 EPS. Cintas's revenue was up 8.9% compared to the same quarter last year. Cintas has set its FY 2027 guidance at 5.360-5.500 EPS. As a group, sell-side analysts expect that Cintas Corporation will post 5.49 earnings per share for the current year.

Cintas Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Friday, August 14th will be issued a dividend of $0.52 per share. This is a boost from Cintas's previous quarterly dividend of $0.45. The ex-dividend date is Friday, August 14th. This represents a $2.08 dividend on an annualized basis and a yield of 1.0%. Cintas's dividend payout ratio (DPR) is currently 48.13%.

Wall Street Analyst Weigh In

CTAS has been the subject of a number of recent analyst reports. Bank of America upgraded shares of Cintas from a "neutral" rating to a "buy" rating and raised their price target for the stock from $200.00 to $230.00 in a report on Thursday, July 16th. Truist Financial decreased their price objective on Cintas from $255.00 to $225.00 and set a "buy" rating on the stock in a report on Monday, June 15th. UBS Group reiterated a "buy" rating and issued a $230.00 price objective (up from $228.00) on shares of Cintas in a research report on Thursday, July 16th. Argus raised Cintas to a "strong-buy" rating in a research note on Friday, July 17th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and issued a $231.00 price target on shares of Cintas in a research note on Wednesday, July 15th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $212.31.

About Cintas

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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