First Trust Advisors LP Boosts Position in Cintas Corporation $CTAS

Key Points

• First Trust Advisors increased its Cintas position by 11% in the first quarter, bringing its holdings to 112,176 shares valued at approximately $18.97 million. Institutional investors own 63.46% of CTAS.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $212.31; several firms raised targets to between $214 and $231.
• Cintas exceeded quarterly expectations, reporting $1.29 in earnings per share and $2.91 billion in revenue, while revenue grew 8.9% year over year. The company also raised its quarterly dividend to $0.52 per share, a 15.6% increase.

First Trust Advisors LP raised its holdings in shares of Cintas Corporation (NASDAQ:CTAS - Free Report) by 11.0% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 112,176 shares of the business services provider's stock after acquiring an additional 11,132 shares during the period. First Trust Advisors LP's holdings in Cintas were worth $18,973,000 at the end of the most recent quarter.

Other large investors have also made changes to their positions in the company. Nemes Rush Group LLC purchased a new position in shares of Cintas during the fourth quarter worth $25,000. Swiss RE Ltd. purchased a new stake in Cintas in the fourth quarter valued at $25,000. Kemnay Advisory Services Inc. purchased a new stake in Cintas in the fourth quarter valued at $26,000. Camelot Portfolios LLC purchased a new stake in Cintas in the fourth quarter valued at $26,000. Finally, Triumph Capital Management acquired a new stake in Cintas during the 3rd quarter worth about $29,000. 63.46% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on CTAS shares. Bank of America upgraded Cintas from a "neutral" rating to a "buy" rating and lifted their price objective for the company from $200.00 to $230.00 in a research note on Thursday, July 16th. Argus raised Cintas to a "strong-buy" rating in a report on Friday, July 17th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $231.00 target price on shares of Cintas in a report on Wednesday, July 15th. Robert W. Baird lifted their price target on Cintas from $200.00 to $214.00 and gave the company an "outperform" rating in a research report on Thursday, July 16th. Finally, UBS Group reissued a "buy" rating and issued a $230.00 price target (up from $228.00) on shares of Cintas in a report on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued 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 company has a consensus rating of "Moderate Buy" and an average target price of $212.31.

Cintas Stock Up 0.8%

CTAS stock opened at $216.53 on Thursday. Cintas Corporation has a one year low of $161.16 and a one year high of $226.75. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.27 and a current ratio of 1.43. The firm's fifty day moving average is $181.79 and its 200 day moving average is $183.88. The firm has a market cap of $86.63 billion, a PE ratio of 57.90, a P/E/G ratio of 3.47 and a beta of 0.94.

Cintas (NASDAQ:CTAS - Get Free Report) last issued its quarterly earnings data on Wednesday, July 15th. The business services provider reported $1.29 earnings per share for the quarter, topping analysts' consensus estimates of $1.24 by $0.05. Cintas had a net margin of 17.75% and a return on equity of 42.05%. The business had revenue of $2.91 billion during the quarter, compared to the consensus estimate of $2.87 billion. During the same quarter in the prior year, the firm posted $1.09 earnings per share. The company'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. On average, research analysts forecast that Cintas Corporation will post 5.49 EPS for the current 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 paid a $0.52 dividend. The ex-dividend date is Friday, August 14th. This represents a $2.08 annualized dividend and a dividend yield of 1.0%. This is a boost from Cintas's previous quarterly dividend of $0.45. Cintas's dividend payout ratio (DPR) is presently 48.13%.

Cintas 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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