Gradient Investments LLC Grows Position in Cintas Corporation $CTAS

Key Points

• Gradient Investments increased its Cintas stake by 21.8% in the second quarter, acquiring 22,650 additional shares for a total holding valued at approximately $21.56 million. Institutional investors collectively own 63.46% of CTAS.
• Cintas exceeded quarterly expectations, reporting $1.29 in EPS and $2.91 billion in revenue, while revenue rose 8.9% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $212.31.
• The company raised its quarterly dividend from $0.45 to $0.52 per share, representing a $2.08 annualized payout and approximately a 1.0% yield.

Gradient Investments LLC grew its holdings in shares of Cintas Corporation (NASDAQ:CTAS - Free Report) by 21.8% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 126,765 shares of the business services provider's stock after acquiring an additional 22,650 shares during the quarter. Gradient Investments LLC's holdings in Cintas were worth $21,560,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently modified their holdings of the company. One Capital Management LLC raised its holdings in Cintas by 0.9% in the 4th quarter. One Capital Management LLC now owns 6,160 shares of the business services provider's stock valued at $1,159,000 after buying an additional 53 shares during the period. Richardson Financial Services Inc. boosted its stake in Cintas by 1.1% during the fourth quarter. Richardson Financial Services Inc. now owns 5,058 shares of the business services provider's stock worth $951,000 after buying an additional 54 shares during the period. Whittier Trust Co. of Nevada Inc. increased its position 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 acquiring an additional 58 shares during the last quarter. Ausdal Financial Partners Inc. increased its position in shares of Cintas by 2.8% during the second quarter. Ausdal Financial Partners Inc. now owns 2,287 shares of the business services provider's stock valued at $510,000 after acquiring an additional 63 shares during the last quarter. Finally, Sachetta LLC raised its stake in shares of Cintas by 46.0% in the 1st quarter. Sachetta LLC now owns 200 shares of the business services provider's stock valued at $34,000 after acquiring an additional 63 shares during the period. Hedge funds and other institutional investors own 63.46% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently weighed in on CTAS. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $206.00 target price on shares of Cintas in a report on Thursday, July 16th. Argus upgraded Cintas to a "strong-buy" rating in a research report on Friday, July 17th. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $250.00 price objective (up from $245.00) on shares of Cintas in a research note on Thursday, July 16th. UBS Group reaffirmed a "buy" rating and issued a $230.00 price objective (up from $228.00) on shares of Cintas in a research note on Thursday, July 16th. Finally, Robert W. Baird boosted their price objective on Cintas from $200.00 to $214.00 and gave the company an "outperform" rating in a report on Thursday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $212.31.

Cintas Stock Performance

NASDAQ:CTAS opened at $203.05 on Friday. The firm has a market capitalization of $81.25 billion, a PE ratio of 54.29, a price-to-earnings-growth ratio of 3.26 and a beta of 0.92. The business's fifty day moving average price is $186.23 and its 200 day moving average price is $184.43. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.43 and a quick ratio of 1.27. Cintas Corporation has a 12 month low of $161.16 and a 12 month high of $226.75.

Cintas (NASDAQ:CTAS - Get Free Report) last announced its quarterly earnings results on Wednesday, July 15th. The business services provider reported $1.29 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.24 by $0.05. The company had revenue of $2.91 billion during the quarter, compared to the consensus estimate of $2.87 billion. Cintas had a return on equity of 42.05% and a net margin of 17.75%.Cintas's revenue for the quarter was up 8.9% on a year-over-year basis. During the same period in the previous year, the business earned $1.09 EPS. Cintas has set its FY 2027 guidance at 5.360-5.500 EPS. On average, sell-side analysts anticipate that Cintas Corporation will post 5.49 earnings per share for the current fiscal year.

Cintas Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, August 14th will be paid a dividend of $0.52 per share. The ex-dividend date is Friday, August 14th. This is a positive change from Cintas's previous quarterly dividend of $0.45. This represents a $2.08 annualized dividend and a yield of 1.0%. 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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