Dearborn Partners LLC Buys New Holdings in Cintas Corporation $CTAS

Key Points

• Dearborn Partners initiated a Cintas position by purchasing 108,220 shares worth approximately $18.4 million in the second quarter. Institutional investors collectively own 63.46% of CTAS, with BlackRock also reporting a new multibillion-dollar stake.
• Cintas exceeded quarterly expectations, reporting $1.29 in earnings per share and $2.91 billion in revenue, up 8.9% year over year. The company also raised its quarterly dividend to $0.52 per share, equating to 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, compared with a recent share price of $204.15.

Dearborn Partners LLC purchased a new position in shares of Cintas Corporation (NASDAQ:CTAS - Free Report) during the 2nd quarter, according to its most recent 13F filing with the SEC. The firm purchased 108,220 shares of the business services provider's stock, valued at approximately $18,406,000.

A number of other large investors have also bought and sold shares of CTAS. BlackRock Inc. bought a new position in shares of Cintas in the second quarter worth approximately $4,520,425,000. State Street Corp raised its holdings in Cintas by 1.4% during the 4th quarter. State Street Corp now owns 15,311,491 shares of the business services provider's stock valued at $2,879,632,000 after buying an additional 210,477 shares during the last quarter. Geode Capital Management LLC raised its holdings in Cintas by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 9,293,485 shares of the business services provider's stock valued at $1,746,453,000 after buying an additional 97,220 shares during the last quarter. Norges Bank purchased a new stake in Cintas during the 4th quarter valued at $923,672,000. Finally, Morgan Stanley boosted its position in Cintas by 0.8% during the 4th quarter. Morgan Stanley now owns 4,393,116 shares of the business services provider's stock valued at $826,214,000 after buying an additional 36,666 shares during the period. 63.46% of the stock is owned by hedge funds and other institutional investors.

Cintas Stock Down 0.8%

Shares of Cintas stock opened at $204.15 on Friday. 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 Corporation has a 12-month low of $161.16 and a 12-month high of $219.16. The company has a market cap of $81.69 billion, a P/E ratio of 54.59, a PEG ratio of 3.32 and a beta of 0.92. The company's fifty day simple moving average is $193.76 and its two-hundred day simple moving average is $185.38.

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, topping the consensus estimate of $1.24 by $0.05. The firm had revenue of $2.91 billion during the quarter, compared to analysts' expectations of $2.87 billion. Cintas had a net margin of 17.75% and a return on equity of 42.05%. The company's quarterly revenue was up 8.9% compared to the same quarter last year. During the same period last year, the company posted $1.09 EPS. Cintas has set its FY 2027 guidance at 5.360-5.500 EPS. Research analysts anticipate that Cintas Corporation will post 5.49 EPS for the current year.

Cintas Increases Dividend

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

Analyst Ratings Changes

CTAS has been the topic of a number of analyst reports. Robert W. Baird boosted their price objective on shares of Cintas from $200.00 to $214.00 and gave the company an "outperform" rating in a research report on Thursday, July 16th. Argus upgraded shares of Cintas to a "strong-buy" rating in a report on Friday, July 17th. Weiss Ratings raised Cintas from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, July 10th. The Goldman Sachs Group restated a "buy" rating and set a $231.00 price target on shares of Cintas in a report on Wednesday, July 15th. Finally, UBS Group restated a "buy" rating and set a $230.00 price target (up from $228.00) on shares of Cintas in a report on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $212.31.

Cintas Company 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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