MUFG Securities EMEA plc Makes New Investment in Cintas Corporation (NASDAQ:CTAS)

Key Points

• MUFG Securities EMEA plc has acquired a $10.07 million stake in Cintas Corporation, purchasing 49,000 shares valued at approximately $10,071,000 during the first quarter.
• Cintas recently declared a quarterly dividend of $0.45, marking an increase from the previous $0.39, with a yield of 0.8% and a payout ratio of 35.37%.
• Analysts have mixed ratings on Cintas, with some firms raising price targets; UBS Group set their target at $255, indicating a strong buy outlook.

MUFG Securities EMEA plc acquired a new stake in shares of Cintas Corporation (NASDAQ:CTAS - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund acquired 49,000 shares of the business services provider's stock, valued at approximately $10,071,000.

Other institutional investors have also modified their holdings of the company. Crestwood Advisors Group LLC bought a new position in shares of Cintas during the 1st quarter valued at about $270,000. Ameriprise Financial Inc. raised its stake in shares of Cintas by 26.7% in the 4th 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 period. Alpine Global Management LLC acquired a new stake in shares of Cintas in the 4th quarter valued at about $284,000. Treasurer of the State of North Carolina boosted its position in shares of Cintas by 12.3% during the fourth quarter. Treasurer of the State of North Carolina now owns 170,182 shares of the business services provider's stock worth $31,092,000 after buying an additional 18,620 shares during the period. Finally, Pinnacle Financial Partners Inc grew its holdings in shares of Cintas by 3.8% during the first quarter. Pinnacle Financial Partners Inc now owns 60,099 shares of the business services provider's stock worth $12,327,000 after buying an additional 2,191 shares in the last quarter. Institutional investors own 63.46% of the company's stock.

Cintas Stock Performance

NASDAQ CTAS traded down $2.39 on Monday, reaching $223.88. The stock had a trading volume of 1,108,187 shares, compared to its average volume of 1,488,941. The company has a market cap of $90.22 billion, a P/E ratio of 50.77, a price-to-earnings-growth ratio of 3.90 and a beta of 1.03. The company has a debt-to-equity ratio of 0.52, a current ratio of 2.09 and a quick ratio of 1.82. The firm has a fifty day moving average of $221.38 and a two-hundred day moving average of $211.44. Cintas Corporation has a 1-year low of $180.78 and a 1-year high of $229.24.

Cintas (NASDAQ:CTAS - Get Free Report) last posted its quarterly earnings results on Thursday, July 17th. The business services provider reported $1.09 EPS for the quarter, topping analysts' consensus estimates of $1.07 by $0.02. Cintas had a return on equity of 41.21% and a net margin of 17.53%. The company had revenue of $2.67 billion during the quarter, compared to analysts' expectations of $2.63 billion. During the same quarter in the previous year, the firm earned $3.99 EPS. Cintas's revenue was up 8.0% on a year-over-year basis. On average, equities research analysts anticipate that Cintas Corporation will post 4.31 EPS for the current year.

Cintas Increases Dividend

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

Insider Activity

In other news, Director Martin Mucci purchased 1,200 shares of the business's stock in a transaction dated Monday, July 21st. The shares were purchased at an average cost of $222.55 per share, with a total value of $267,060.00. Following the completion of the purchase, the director owned 2,621 shares of the company's stock, valued at $583,303.55. This trade represents a 84.45% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, Director Ronald W. Tysoe sold 5,084 shares of the stock in a transaction dated Wednesday, July 30th. The shares were sold at an average price of $223.47, for a total value of $1,136,121.48. Following the completion of the sale, the director directly owned 21,945 shares of the company's stock, valued at approximately $4,904,049.15. The trade was a 18.81% decrease in their position. The disclosure for this sale can be found here. Insiders own 15.00% of the company's stock.

Wall Street Analyst Weigh In

CTAS has been the topic of several research reports. Robert W. Baird boosted their target price on 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 increased their target price on shares of Cintas from $233.00 to $257.00 and gave the stock a "buy" rating in a report on Wednesday, July 2nd. UBS Group lifted their price target on shares of Cintas from $240.00 to $255.00 and gave the company a "buy" rating in a research note on Friday, July 18th. Royal Bank Of Canada restated a "sector perform" rating and set a $240.00 price objective (up from $215.00) on shares of Cintas in a research note on Monday, June 9th. Finally, Morgan Stanley increased their price objective on shares of Cintas from $213.00 to $220.00 and gave the stock an "equal weight" rating in a research note on Friday, July 18th. Two analysts have rated the stock with a sell rating, five have issued a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, Cintas has an average rating of "Hold" and an average target price 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.