Nuveen LLC Acquires New Stake in Cintas Corporation (NASDAQ:CTAS)

Key Points

• Nuveen LLC has acquired a significant stake in Cintas Corporation, purchasing over 9 million shares valued at approximately $1.88 billion, marking it as the 27th largest holding in their portfolio.
• Insider activity includes CEO Todd M. Schneider selling 17,301 shares, while analysts have mixed opinions, with targets ranging from $171.00 to $257.00 and a consensus rating of "Hold".
• Cintas has announced a quarterly dividend increase from $0.39 to $0.45, reflecting a payout ratio of 35.37% and a dividend yield of 0.8%.

Nuveen LLC bought a new position in Cintas Corporation (NASDAQ:CTAS - Free Report) in the first quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 9,136,186 shares of the business services provider's stock, valued at approximately $1,877,760,000. Cintas comprises approximately 0.6% of Nuveen LLC's holdings, making the stock its 27th biggest holding. Nuveen LLC owned 2.26% of Cintas as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also recently made changes to their positions in the company. E Fund Management Hong Kong Co. Ltd. boosted its holdings in Cintas by 646.4% in the first quarter. E Fund Management Hong Kong Co. Ltd. now owns 209 shares of the business services provider's stock worth $43,000 after purchasing an additional 181 shares during the last quarter. Washington Trust Advisors Inc. purchased a new stake in Cintas in the first quarter worth about $46,000. Greykasell Wealth Strategies Inc. purchased a new stake in Cintas in the first quarter worth about $46,000. Wellington Shields & Co. LLC purchased a new stake in Cintas in the first quarter worth about $51,000. Finally, Olde Wealth Management LLC purchased a new stake in Cintas in the first quarter worth about $55,000. Institutional investors own 63.46% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on CTAS. The Goldman Sachs Group upped their price objective on Cintas from $233.00 to $257.00 and gave the stock a "buy" rating in a research note on Wednesday, July 2nd. Redburn Atlantic lowered Cintas from a "neutral" rating to a "sell" rating and set a $171.00 price objective for the company. in a research note on Thursday, May 1st. Robert W. Baird upped their price objective on Cintas from $227.00 to $230.00 and gave the stock a "neutral" rating in a research note on Friday, July 18th. Morgan Stanley increased their price target on Cintas from $213.00 to $220.00 and gave the company an "equal weight" rating in a research note on Friday, July 18th. Finally, Wells Fargo & Company raised Cintas from an "underweight" rating to an "equal weight" rating and increased their price target for the company from $196.00 to $221.00 in a research note on Tuesday, July 1st. 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 given a strong buy rating to the company. According to data from MarketBeat.com, Cintas presently has a consensus rating of "Hold" and a consensus target price of $224.54.

Insiders Place Their Bets

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

Cintas Stock Down 0.3%

NASDAQ:CTAS traded down $0.57 during trading hours on Tuesday, reaching $223.31. The company's stock had a trading volume of 1,467,165 shares, compared to its average volume of 1,498,182. The company has a market capitalization of $89.99 billion, a P/E ratio of 50.64, a price-to-earnings-growth ratio of 3.86 and a beta of 1.03. 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 stock has a 50 day moving average price of $221.32 and a two-hundred day moving average price of $211.62. Cintas Corporation has a 12 month low of $180.78 and a 12 month high of $229.24.

Cintas (NASDAQ:CTAS - Get Free Report) last posted its quarterly earnings data 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. Cintas had a return on equity of 41.21% and a net margin of 17.53%. The firm had revenue of $2.67 billion during the quarter, compared to analysts' expectations of $2.63 billion. During the same quarter last year, the firm earned $3.99 EPS. The business's quarterly revenue was up 8.0% on a year-over-year basis. Equities analysts predict that Cintas Corporation will post 4.31 EPS for the current fiscal year.

Cintas Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Friday, August 15th will be paid a dividend of $0.45 per share. This is an increase 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 yield of 0.8%. Cintas's dividend payout ratio (DPR) is presently 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.