Goldman Sachs Group Inc. Sells 48,575 Shares of Cintas Corporation (NASDAQ:CTAS)

Key Points

• Goldman Sachs Group Inc. reduced its stake in Cintas Corporation by 1.8%, selling 48,575 shares, and now owns 2,639,597 shares valued at approximately $542.5 million.
• Cintas announced a quarterly dividend increase to $0.45 per share, which will be paid on September 15th, reflecting a new annualized yield of 0.8%.
• Analysts generally hold a mixed outlook on Cintas, with an average rating of "Hold" and a recent price target of $224.54 based on varied recommendations from multiple investment firms.

Goldman Sachs Group Inc. lessened its stake in Cintas Corporation (NASDAQ:CTAS - Free Report) by 1.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,639,597 shares of the business services provider's stock after selling 48,575 shares during the period. Goldman Sachs Group Inc. owned 0.65% of Cintas worth $542,516,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors also recently added to or reduced their stakes in the company. E Fund Management Hong Kong Co. Ltd. raised its stake in Cintas by 646.4% during the 1st quarter. E Fund Management Hong Kong Co. Ltd. now owns 209 shares of the business services provider's stock valued at $43,000 after acquiring an additional 181 shares during the last quarter. Washington Trust Advisors Inc. acquired a new position in Cintas during the first quarter worth about $46,000. Wellington Shields & Co. LLC purchased a new stake in shares of Cintas in the first quarter valued at $51,000. Olde Wealth Management LLC acquired a new position in Cintas in the 1st quarter valued at about $55,000. Finally, Trust Co. of Vermont lifted its stake in shares of Cintas by 76.1% during the first quarter. Trust Co. of Vermont now owns 331 shares of the business services provider's stock valued at $68,000 after buying an additional 143 shares during the period. Institutional investors and hedge funds own 63.46% of the company's stock.

Insider Activity

In other news, CEO Todd M. Schneider sold 17,301 shares of the firm's stock in a transaction on Monday, July 28th. The stock was sold at an average price of $220.90, for a total transaction of $3,821,790.90. Following the completion of the sale, the chief executive officer directly owned 622,712 shares of the company's stock, valued at $137,557,080.80. This trade represents a 2.70% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Ronald W. Tysoe sold 5,084 shares of Cintas stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $223.47, for a total transaction of $1,136,121.48. Following the completion of the transaction, the director directly owned 21,945 shares in the company, valued at approximately $4,904,049.15. This trade represents a 18.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 15.00% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on CTAS. Wells Fargo & Company upgraded shares of Cintas from an "underweight" rating to an "equal weight" rating and increased their price objective for the stock from $196.00 to $221.00 in a report on Tuesday, July 1st. Robert W. Baird upped their target price on shares of Cintas from $227.00 to $230.00 and gave the company a "neutral" rating in a research note on Friday, July 18th. The Goldman Sachs Group upped their target price on Cintas from $233.00 to $257.00 and gave the company a "buy" rating in a research report on Wednesday, July 2nd. UBS Group lifted their price target on Cintas from $240.00 to $255.00 and gave the stock a "buy" rating in a research note on Friday, July 18th. Finally, Bank of America began coverage on shares of Cintas in a research report on Thursday, April 10th. They issued a "buy" rating and a $250.00 price target on the stock. Two research analysts have rated the stock with a sell rating, five have assigned a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $224.54.

Cintas Price Performance

Cintas stock traded up $2.87 during trading hours on Friday, hitting $226.27. 1,739,749 shares of the company traded hands, compared to its average volume of 1,453,720. Cintas Corporation has a 1-year low of $180.78 and a 1-year high of $229.24. The firm has a market cap of $91.18 billion, a P/E ratio of 51.31, a P/E/G ratio of 3.85 and a beta of 1.03. The firm's 50-day simple moving average is $221.38 and its two-hundred day simple moving average is $211.26. The company has a quick ratio of 1.82, a current ratio of 2.09 and a debt-to-equity ratio of 0.52.

Cintas (NASDAQ:CTAS - Get Free Report) last released its earnings results on Thursday, July 17th. The business services provider reported $1.09 earnings per share for the quarter, topping analysts' consensus estimates of $1.07 by $0.02. The firm had revenue of $2.67 billion during the quarter, compared to the consensus estimate of $2.63 billion. Cintas had a return on equity of 41.21% and a net margin of 17.53%. The firm's revenue for the quarter was up 8.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.99 earnings per share. As a group, analysts forecast that Cintas Corporation will post 4.31 earnings per share for the current fiscal year.

Cintas Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Friday, August 15th will be given a dividend of $0.45 per share. This is a positive change from Cintas's previous quarterly dividend of $0.39. The ex-dividend date is Friday, August 15th. This represents a $1.80 annualized dividend and a dividend yield of 0.8%. Cintas's payout ratio is 35.37%.

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.