King Luther Capital Management Corp Has $380.33 Million Position in Cintas Corporation (NASDAQ:CTAS)

Key Points

• King Luther Capital Management Corp has reduced its holdings in Cintas Corporation by 1.4%, maintaining a position valued at approximately $380.33 million, making Cintas its 12th largest holding.
• Cintas recently increased its quarterly dividend from $0.39 to $0.45, reflecting a healthy payout ratio of 35.37%.
• The company's stock performance is strong, with a PE ratio of 51.31 and a net margin of 17.53%, reflecting significant growth prospects according to analyst ratings.

King Luther Capital Management Corp trimmed its holdings in shares of Cintas Corporation (NASDAQ:CTAS - Free Report) by 1.4% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,850,477 shares of the business services provider's stock after selling 25,744 shares during the quarter. Cintas comprises 1.8% of King Luther Capital Management Corp's portfolio, making the stock its 12th biggest holding. King Luther Capital Management Corp owned 0.46% of Cintas worth $380,329,000 as of its most recent SEC filing.

Several other hedge funds have also recently bought and sold shares of the business. Crestwood Advisors Group LLC bought a new position in shares of Cintas in the 1st quarter valued at approximately $270,000. Ameriprise Financial Inc. grew its holdings in Cintas by 26.7% during the fourth quarter. Ameriprise Financial Inc. now owns 2,228,609 shares of the business services provider's stock valued at $407,163,000 after purchasing an additional 468,950 shares during the last quarter. Alpine Global Management LLC acquired a new position in Cintas during the fourth quarter valued at approximately $284,000. Pinnacle Financial Partners Inc raised its position in shares of Cintas by 3.8% in the first quarter. Pinnacle Financial Partners Inc now owns 60,099 shares of the business services provider's stock valued at $12,327,000 after purchasing an additional 2,191 shares during the period. Finally, Advisory Services Network LLC lifted its stake in shares of Cintas by 477.6% in the fourth quarter. Advisory Services Network LLC now owns 9,958 shares of the business services provider's stock worth $1,819,000 after buying an additional 8,234 shares during the last quarter. 63.46% of the stock is owned by institutional investors and hedge funds.

Cintas Stock Performance

Shares of CTAS traded down $0.57 during mid-day trading on Tuesday, hitting $223.31. The company's stock had a trading volume of 1,467,165 shares, compared to its average volume of 1,498,182. Cintas Corporation has a one year low of $180.78 and a one year high of $229.24. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.82 and a current ratio of 2.09. The firm has a market capitalization of $89.99 billion, a PE ratio of 50.64, a price-to-earnings-growth ratio of 3.86 and a beta of 1.03. The stock's 50-day moving average is $221.32 and its two-hundred day moving average is $211.62.

Cintas (NASDAQ:CTAS - Get Free Report) last issued its earnings results on Thursday, July 17th. The business services provider reported $1.09 EPS for the quarter, topping the consensus estimate of $1.07 by $0.02. The firm had revenue of $2.67 billion during the quarter, compared to analysts' expectations of $2.63 billion. Cintas had a return on equity of 41.21% and a net margin of 17.53%. Cintas's quarterly revenue was up 8.0% compared to the same quarter last year. During the same period last year, the business earned $3.99 earnings per share. As a group, sell-side analysts anticipate 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 given a $0.45 dividend. 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. The ex-dividend date of this dividend is Friday, August 15th. Cintas's dividend payout ratio (DPR) is 35.37%.

Insider Buying and Selling

In other news, Director Martin Mucci bought 1,200 shares of Cintas stock in a transaction that occurred on Monday, July 21st. The stock was purchased at an average cost of $222.55 per share, with a total value of $267,060.00. Following the completion of the transaction, the director directly owned 2,621 shares in the company, valued at $583,303.55. This trade represents a 84.45% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Todd M. Schneider sold 17,301 shares of the stock in a transaction on Monday, July 28th. The stock was sold at an average price of $220.90, for a total value of $3,821,790.90. Following the transaction, the chief executive officer owned 622,712 shares of the company's stock, valued at $137,557,080.80. This represents a 2.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. 15.00% of the stock is owned by company insiders.

Analysts Set New Price Targets

CTAS has been the topic of a number of research analyst reports. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $240.00 target price (up from $215.00) on shares of Cintas in a research note on Monday, June 9th. Morgan Stanley raised their price target on Cintas from $213.00 to $220.00 and gave the company an "equal weight" rating in a research report on Friday, July 18th. Wells Fargo & Company raised Cintas from an "underweight" rating to an "equal weight" rating and raised their price target for the company from $196.00 to $221.00 in a research report on Tuesday, July 1st. Robert W. Baird raised their price target on Cintas from $227.00 to $230.00 and gave the company a "neutral" rating in a research report on Friday, July 18th. Finally, UBS Group raised their price target on Cintas from $240.00 to $255.00 and gave the company a "buy" rating in a research report on Friday, July 18th. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating, six have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $224.54.

Cintas Company Profile

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.