GAMMA Investing LLC Increases Stake in Cintas Corporation $CTAS

Key Points

• GAMMA Investing LLC increased its Cintas stake by 222.4% in the third quarter, ending with 36,883 shares valued at approximately $7.2 million. Institutional investors collectively own 63.46% of Cintas.
• Analysts remain broadly optimistic, with a consensus rating of “Moderate Buy” and an average price target of $216.08; targets from major firms range from $206 to $250.
• Cintas exceeded quarterly earnings and revenue expectations, reporting $1.39 in EPS and $3.01 billion in revenue, while revenue grew 10.9% year over year. The company also raised its quarterly dividend from $0.45 to $0.52 per share.

GAMMA Investing LLC grew its position in Cintas Corporation (NASDAQ:CTAS - Free Report) by 222.4% during the third quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 36,883 shares of the business services provider's stock after purchasing an additional 25,443 shares during the quarter. GAMMA Investing LLC's holdings in Cintas were worth $7,194,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds also recently made changes to their positions in the business. Rehmann Capital Advisory Group boosted its holdings in shares of Cintas by 1.6% during the 2nd quarter. Rehmann Capital Advisory Group now owns 3,355 shares of the business services provider's stock worth $580,000 after buying an additional 54 shares in the last quarter. Whittier Trust Co. of Nevada Inc. grew its holdings in shares of Cintas by 0.8% during the first quarter. Whittier Trust Co. of Nevada Inc. now owns 7,198 shares of the business services provider's stock valued at $1,236,000 after buying an additional 58 shares during the last quarter. Sachetta LLC boosted its stake in Cintas by 46.0% during the 1st quarter. Sachetta LLC now owns 200 shares of the business services provider's stock valued at $34,000 after purchasing an additional 63 shares during the last quarter. Sumitomo Life Insurance Co. boosted its position in shares of Cintas by 0.4% during the fourth quarter. Sumitomo Life Insurance Co. now owns 15,118 shares of the business services provider's stock valued at $2,843,000 after buying an additional 64 shares during the last quarter. Finally, First National Bank of Mount Dora Trust Investment Services boosted its holdings in Cintas by 0.4% during the 2nd quarter. First National Bank of Mount Dora Trust Investment Services now owns 17,447 shares of the business services provider's stock worth $2,967,000 after acquiring an additional 70 shares during the last quarter. Institutional investors own 63.46% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on the company. Royal Bank Of Canada restated a "sector perform" rating and issued a $206.00 target price on shares of Cintas in a research note on Thursday, September 24th. The Goldman Sachs Group reiterated a "buy" rating and set a $231.00 price target on shares of Cintas in a research note on Wednesday, July 15th. Bank of America raised shares of Cintas from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $200.00 to $230.00 in a report on Thursday, July 16th. Truist Financial lifted their target price on Cintas from $225.00 to $230.00 and gave the company a "buy" rating in a report on Thursday, September 24th. Finally, Wells Fargo & Company restated an "overweight" rating and set a $250.00 price target (up from $245.00) on shares of Cintas in a research report on Thursday, July 16th. Eight research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $216.08.

Cintas Stock Up 2.0%

Shares of CTAS opened at $201.12 on Friday. Cintas Corporation has a 1 year low of $161.16 and a 1 year high of $219.16. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.45 and a quick ratio of 1.29. The stock has a 50 day simple moving average of $200.38 and a two-hundred day simple moving average of $185.89. The firm has a market cap of $80.59 billion, a P/E ratio of 39.67, a P/E/G ratio of 3.13 and a beta of 0.92.

Cintas (NASDAQ:CTAS - Get Free Report) last posted its quarterly earnings results on Wednesday, September 23rd. The business services provider reported $1.39 EPS for the quarter, topping the consensus estimate of $1.35 by $0.04. The firm had revenue of $3.01 billion for the quarter, compared to the consensus estimate of $2.98 billion. Cintas had a net margin of 17.82% and a return on equity of 42.57%. The business's revenue was up 10.9% compared to the same quarter last year. During the same period last year, the firm posted $1.20 earnings per share. Cintas has set its FY 2027 guidance at 5.450-5.540 EPS. On average, analysts forecast that Cintas Corporation will post 5.52 earnings per share for the current fiscal year.

Cintas Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Friday, August 14th were given a $0.52 dividend. This represents a $2.08 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date was Friday, August 14th. This is a boost from Cintas's previous quarterly dividend of $0.45. Cintas's dividend payout ratio is 41.03%.

About Cintas

Cintas Corporation NASDAQ: CTAS provides workplace services to businesses and organizations across North America. The company's primary business is uniform rental and facility services, including the design, rental, cleaning and delivery of uniforms, work apparel and related garments.

Its offerings also include restroom and hygiene services, floor-care products, mats, towels, and other facility supplies. Through its First Aid & Safety segment, Cintas provides first-aid products, safety equipment and training.

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