Palmer Knight Co Acquires New Holdings in Cintas Corporation $CTAS

Key Points

• Palmer Knight Co. acquired 49,490 Cintas shares worth approximately $8.4 million during the second quarter, making Cintas its 15th-largest holding and 3.2% of its portfolio. Institutional investors collectively own 63.46% of the company.
• Cintas exceeded quarterly expectations, reporting adjusted EPS of $1.29 versus the $1.24 consensus and revenue of $2.91 billion, up 8.9% year over year.
• The company raised its quarterly dividend to $0.52 per share, while analysts maintained a consensus “Moderate Buy” rating and an average price target of $212.31.

Palmer Knight Co bought a new stake in Cintas Corporation (NASDAQ:CTAS - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund bought 49,490 shares of the business services provider's stock, valued at approximately $8,417,000. Cintas comprises about 3.2% of Palmer Knight Co's investment portfolio, making the stock its 15th largest holding.

A number of other large investors have also added to or reduced their stakes in the company. Nemes Rush Group LLC bought a new stake in shares of Cintas in the 4th quarter valued at about $25,000. Swiss RE Ltd. bought a new position in shares of Cintas during the 4th quarter worth approximately $25,000. Kemnay Advisory Services Inc. purchased a new stake in Cintas during the fourth quarter valued at approximately $26,000. Camelot Portfolios LLC purchased a new stake in Cintas during the fourth quarter valued at approximately $26,000. Finally, Triumph Capital Management purchased a new stake in Cintas during the third quarter valued at approximately $29,000. 63.46% of the stock is currently owned by institutional investors.

Cintas Stock Up 0.8%

CTAS stock opened at $199.45 on Wednesday. The stock has a market capitalization of $79.81 billion, a PE ratio of 53.33, a price-to-earnings-growth ratio of 3.22 and a beta of 0.91. Cintas Corporation has a 52 week low of $161.16 and a 52 week high of $219.87. The company has a quick ratio of 1.27, a current ratio of 1.43 and a debt-to-equity ratio of 0.28. The firm has a 50 day moving average of $189.72 and a 200 day moving average of $184.77.

Cintas (NASDAQ:CTAS - Get Free Report) last issued its quarterly earnings results on Wednesday, July 15th. The business services provider reported $1.29 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.24 by $0.05. The business had revenue of $2.91 billion for the quarter, compared to analyst estimates of $2.87 billion. Cintas had a net margin of 17.75% and a return on equity of 42.05%. Cintas's revenue for the quarter was up 8.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.09 EPS. Cintas has set its FY 2027 guidance at 5.360-5.500 EPS. Sell-side analysts forecast that Cintas Corporation will post 5.49 earnings per share for the current year.

Cintas Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Friday, August 14th will be given a $0.52 dividend. This represents a $2.08 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Friday, August 14th. This is a positive change from Cintas's previous quarterly dividend of $0.45. Cintas's payout ratio is currently 55.61%.

Analysts Set New Price Targets

Several equities analysts have issued reports on CTAS shares. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $250.00 price target (up from $245.00) on shares of Cintas in a report on Thursday, July 16th. Argus upgraded Cintas to a "strong-buy" rating in a report on Friday, July 17th. Truist Financial lowered their price objective on Cintas from $255.00 to $225.00 and set a "buy" rating for the company in a research report on Monday, June 15th. The Goldman Sachs Group restated a "buy" rating and set a $231.00 target price on shares of Cintas in a research note on Wednesday, July 15th. Finally, UBS Group reaffirmed a "buy" rating and set a $230.00 target price (up from $228.00) on shares of Cintas in a research report on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $212.31.

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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