E Fund Management Co. Ltd. Boosts Stake in Cintas Corporation (NASDAQ:CTAS)

Key Points

• E Fund Management Co. Ltd. increased its stake in Cintas Corporation by 100.5%, now holding shares worth approximately $2.31 million.
• Cintas recently announced a quarterly dividend of $0.45 per share, an increase from the previous $0.39, with a yield of 0.8%.
• The company's latest quarterly earnings exceeded expectations, reporting an EPS of $1.09 and revenue of $2.67 billion, up 8% year-over-year.

E Fund Management Co. Ltd. increased its holdings in Cintas Corporation (NASDAQ:CTAS - Free Report) by 100.5% during the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 11,230 shares of the business services provider's stock after buying an additional 5,628 shares during the period. E Fund Management Co. Ltd.'s holdings in Cintas were worth $2,308,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Stone House Investment Management LLC purchased a new stake in Cintas during the first quarter valued at about $41,000. E Fund Management Hong Kong Co. Ltd. increased 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 position in shares of Cintas in the first quarter worth about $46,000. Greykasell Wealth Strategies Inc. bought a new stake in shares of Cintas in the first quarter worth about $46,000. Finally, Wellington Shields & Co. LLC bought a new stake in shares of Cintas in the first quarter worth about $51,000. Hedge funds and other institutional investors own 63.46% of the company's stock.

Cintas Stock Performance

CTAS traded down $4.81 during mid-day trading on Friday, reaching $216.55. 1,398,396 shares of the company traded hands, compared to its average volume of 1,365,709. The stock has a market capitalization of $87.27 billion, a P/E ratio of 49.10, a P/E/G ratio of 3.82 and a beta of 1.03. 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 company's fifty day moving average price is $221.08 and its 200-day moving average price is $211.93. Cintas Corporation has a 52-week low of $180.78 and a 52-week high of $229.24.

Cintas (NASDAQ:CTAS - Get Free Report) last announced its earnings results on Thursday, July 17th. The business services provider reported $1.09 earnings per share for the quarter, beating analysts' consensus estimates of $1.07 by $0.02. The business had revenue of $2.67 billion during the quarter, compared to analyst estimates of $2.63 billion. Cintas had a net margin of 17.53% and a return on equity of 41.21%. The company's quarterly revenue was up 8.0% compared to the same quarter last year. During the same period in the previous year, the business earned $3.99 EPS. On average, sell-side analysts expect that Cintas Corporation will post 4.31 EPS for the current year.

Cintas Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Friday, August 15th will be issued a $0.45 dividend. The ex-dividend date of this dividend is Friday, August 15th. This represents a $1.80 annualized dividend and a yield of 0.8%. This is an increase from Cintas's previous quarterly dividend of $0.39. Cintas's payout ratio is currently 35.37%.

Insider Buying and Selling

In other Cintas news, Director Martin Mucci bought 1,200 shares of the firm's stock in a transaction dated Monday, July 21st. The shares were purchased at an average cost of $222.55 per share, for a total transaction of $267,060.00. Following the transaction, the director owned 2,621 shares of the company's stock, valued at $583,303.55. This represents a 84.45% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Ronald W. Tysoe sold 5,084 shares of the company's stock in a transaction dated Wednesday, July 30th. The shares were sold at an average price of $223.47, for a total transaction of $1,136,121.48. Following the sale, the director owned 21,945 shares in the company, valued at $4,904,049.15. This represents a 18.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. 15.00% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

CTAS has been the topic of several research reports. Wells Fargo & Company raised Cintas from an "underweight" rating to an "equal weight" rating and lifted their price objective for the company from $196.00 to $221.00 in a research report on Tuesday, July 1st. UBS Group lifted their target price on shares of Cintas from $240.00 to $255.00 and gave the company a "buy" rating in a report on Friday, July 18th. Royal Bank Of Canada reiterated a "sector perform" rating and set a $240.00 target price (up from $215.00) on shares of Cintas in a report on Monday, June 9th. Morgan Stanley boosted their price objective on shares of Cintas from $213.00 to $220.00 and gave the stock an "equal weight" rating in a report on Friday, July 18th. Finally, JPMorgan Chase & Co. assumed coverage on shares of Cintas in a report on Monday, July 14th. They issued an "overweight" rating and a $239.00 price objective for the company. Two equities research 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 stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus 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.