Compass Capital Management Inc. Invests $46.52 Million in Cintas Corporation $CTAS

Key Points

• Compass Capital Management purchased 273,510 Cintas shares worth approximately $46.5 million, making CTAS about 2.8% of its portfolio and its 21st-largest holding. Institutional investors collectively own 63.46% of Cintas.
• Cintas exceeded quarterly expectations with adjusted EPS of $1.29 and revenue of $2.91 billion, up 8.9% year over year. The company issued fiscal 2027 EPS guidance of $5.36–$5.50.
• Cintas increased its quarterly dividend from $0.45 to $0.52 per share, or $2.08 annually, representing a 1.0% yield. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $212.31.

Compass Capital Management Inc. purchased a new position in shares of Cintas Corporation (NASDAQ:CTAS - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 273,510 shares of the business services provider's stock, valued at approximately $46,519,000. Cintas accounts for about 2.8% of Compass Capital Management Inc.'s investment portfolio, making the stock its 21st largest holding. Compass Capital Management Inc. owned approximately 0.07% of Cintas at the end of the most recent quarter.

Other institutional investors have also recently made changes to their positions in the company. Norges Bank purchased a new stake in Cintas during the fourth quarter worth $923,672,000. Bank of New York Mellon Corp purchased a new position in Cintas in the second quarter valued at $644,334,000. Two Sigma Investments LP raised its position in shares of Cintas by 5,641.3% in the third quarter. Two Sigma Investments LP now owns 1,016,671 shares of the business services provider's stock worth $208,682,000 after acquiring an additional 998,963 shares during the period. Voloridge Investment Management LLC raised its position in shares of Cintas by 275.2% in the third quarter. Voloridge Investment Management LLC now owns 1,123,237 shares of the business services provider's stock worth $230,556,000 after acquiring an additional 823,885 shares during the period. Finally, Freestone Grove Partners LP boosted its stake in shares of Cintas by 5,341.8% during the 3rd quarter. Freestone Grove Partners LP now owns 747,109 shares of the business services provider's stock worth $153,352,000 after acquiring an additional 733,380 shares in the last quarter. 63.46% of the stock is owned by hedge funds and other institutional investors.

Cintas Stock Performance

CTAS opened at $199.52 on Monday. The company has a current ratio of 1.43, a quick ratio of 1.27 and a debt-to-equity ratio of 0.28. The firm's 50-day moving average price is $188.85 and its 200 day moving average price is $184.65. The firm has a market capitalization of $79.84 billion, a PE ratio of 53.35, a PEG ratio of 3.22 and a beta of 0.91. Cintas Corporation has a twelve month low of $161.16 and a twelve month high of $221.36.

Cintas (NASDAQ:CTAS - Get Free Report) last posted its earnings results on Wednesday, July 15th. The business services provider reported $1.29 EPS for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $2.87 billion. During the same quarter in the previous year, the business earned $1.09 earnings per share. The company's revenue for the quarter was up 8.9% on a year-over-year basis. 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 EPS for the current fiscal year.

Cintas Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, August 14th will be given a $0.52 dividend. This is a positive change from Cintas's previous quarterly dividend of $0.45. The ex-dividend date is Friday, August 14th. This represents a $2.08 annualized dividend and a yield of 1.0%. Cintas's payout ratio is currently 55.61%.

Wall Street Analyst Weigh In

CTAS has been the topic of a number of analyst reports. Royal Bank Of Canada restated a "sector perform" rating and set a $206.00 target price on shares of Cintas in a research report on Thursday, July 16th. UBS Group reiterated a "buy" rating and set a $230.00 price target (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 report on Friday, July 17th. Wells Fargo & Company reissued an "overweight" rating and issued a $250.00 price objective (up from $245.00) on shares of Cintas in a report on Thursday, July 16th. Finally, Robert W. Baird boosted their price objective on Cintas from $200.00 to $214.00 and gave the company an "outperform" rating in a research report on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus 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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