Citigroup Inc. Raises Stock Holdings in Cintas Corporation (NASDAQ:CTAS)

Key Points

• Citigroup Inc. increased its holdings in Cintas Corporation by 10.4%, acquiring an additional 58,236 shares in the first quarter, bringing its total ownership to approximately $126.96 million.
• Several hedge funds significantly boosted their stakes in Cintas, with GAMMA Investing LLC increasing its holdings by an impressive 19,644.3%, now owning over 2.26 million shares.
• Cintas Corporation announced a quarterly dividend increase from $0.39 to $0.45, reflecting an annualized dividend yield of 0.8% and a payout ratio of 35.37%.

Citigroup Inc. raised its stake in Cintas Corporation (NASDAQ:CTAS - Free Report) by 10.4% during the first quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 617,721 shares of the business services provider's stock after acquiring an additional 58,236 shares during the period. Citigroup Inc. owned approximately 0.15% of Cintas worth $126,960,000 as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. E Fund Management Hong Kong Co. Ltd. raised its holdings in shares of 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 buying an additional 181 shares during the period. Washington Trust Advisors Inc. purchased a new stake in shares of Cintas in the first quarter worth approximately $46,000. Greykasell Wealth Strategies Inc. purchased a new stake in shares of Cintas in the first quarter worth approximately $46,000. Wellington Shields & Co. LLC purchased a new position in Cintas during the 1st quarter worth $51,000. Finally, Olde Wealth Management LLC purchased a new position in Cintas during the 1st quarter worth $55,000. 63.46% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Cintas

In other Cintas news, CEO Todd M. Schneider sold 17,301 shares of Cintas stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $220.90, for a total transaction of $3,821,790.90. Following the completion of 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 sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Ronald W. Tysoe sold 5,084 shares of Cintas stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $223.47, for a total value of $1,136,121.48. Following the sale, the director directly owned 21,945 shares of the company's stock, valued at approximately $4,904,049.15. This represents a 18.81% decrease in their position. The disclosure for this sale can be found here. Insiders own 15.00% of the company's stock.

Cintas Stock Down 1.1%

Shares of NASDAQ:CTAS traded down $2.39 on Monday, reaching $223.88. The company had a trading volume of 1,108,187 shares, compared to its average volume of 1,488,941. Cintas Corporation has a 52-week low of $180.78 and a 52-week high of $229.24. The firm's 50 day simple moving average is $221.38 and its 200-day simple moving average is $211.44. The firm has a market capitalization of $90.22 billion, a PE ratio of 51.31, a PEG 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.

Cintas (NASDAQ:CTAS - Get Free Report) last posted its quarterly earnings data on Thursday, July 17th. The business services provider reported $1.09 earnings per share for the quarter, topping analysts' consensus estimates of $1.07 by $0.02. The firm had revenue of $2.67 billion during the quarter, compared to analysts' expectations of $2.63 billion. Cintas had a return on equity of 41.21% and a net margin of 17.53%. The business's quarterly revenue was up 8.0% on a year-over-year basis. During the same quarter last year, the firm earned $3.99 EPS. As a group, analysts expect that Cintas Corporation will post 4.31 earnings per share for the current fiscal year.

Cintas Increases Dividend

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

Wall Street Analyst Weigh In

Several research firms have commented on CTAS. UBS Group raised their price objective on Cintas from $240.00 to $255.00 and gave the stock a "buy" rating in a report on Friday, July 18th. Royal Bank Of Canada restated a "sector perform" rating and set a $240.00 price objective (up from $215.00) on shares of Cintas in a report on Monday, June 9th. The Goldman Sachs Group raised their price objective on Cintas from $233.00 to $257.00 and gave the stock a "buy" rating in a report on Wednesday, July 2nd. Robert W. Baird raised their price objective on Cintas from $227.00 to $230.00 and gave the stock a "neutral" rating in a report on Friday, July 18th. Finally, Redburn Atlantic downgraded Cintas from a "neutral" rating to a "sell" rating and set a $171.00 price objective on the stock. in a report on Thursday, May 1st. Two investment analysts have rated the stock with a sell rating, five have given a hold rating, six have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Cintas currently has a consensus rating of "Hold" and an average price target of $224.54.

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.