PFA Pension Forsikringsaktieselskab Takes $75.60 Million Position in Cintas Corporation $CTAS

Key Points

• PFA Pension bought a new stake of 397,141 shares in Cintas valued at about $75.6 million; overall institutional ownership of CTAS is ~63.46% with several hedge funds materially increasing positions.
• Analyst sentiment is mixed — CTAS carries an average rating of "Hold" with an average price target of $215.17, while individual calls range from Citigroup's sell/$160 target to Wells Fargo's overweight/$245 target.
• Cintas reported Q results with EPS of $1.24 (in line with estimates) and revenue up 8.9% to $2.84 billion; the stock trades at a high P/E (~47.9) and pays a quarterly dividend of $0.45 (annual yield ~1.1%).

PFA Pension Forsikringsaktieselskab bought a new stake in shares of Cintas Corporation (NASDAQ:CTAS - Free Report) during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 397,141 shares of the business services provider's stock, valued at approximately $75,596,000. PFA Pension Forsikringsaktieselskab owned 0.10% of Cintas as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently made changes to their positions in CTAS. Two Sigma Investments LP increased its stake in shares of Cintas by 5,641.3% during the third quarter. Two Sigma Investments LP now owns 1,016,671 shares of the business services provider's stock valued at $208,682,000 after buying an additional 998,963 shares during the period. SG Americas Securities LLC increased its stake in shares of Cintas by 2,653.0% during the fourth quarter. SG Americas Securities LLC now owns 1,003,031 shares of the business services provider's stock valued at $188,640,000 after buying an additional 966,597 shares during the period. Voloridge Investment Management LLC increased its stake in shares of Cintas by 275.2% during the third quarter. Voloridge Investment Management LLC now owns 1,123,237 shares of the business services provider's stock valued at $230,556,000 after buying an additional 823,885 shares during the period. Freestone Grove Partners LP increased its stake in shares of Cintas by 5,341.8% during the third quarter. Freestone Grove Partners LP now owns 747,109 shares of the business services provider's stock valued at $153,352,000 after buying an additional 733,380 shares during the period. Finally, Alliancebernstein L.P. increased its stake in shares of Cintas by 125.5% during the third quarter. Alliancebernstein L.P. now owns 1,130,292 shares of the business services provider's stock valued at $232,004,000 after buying an additional 629,065 shares during the period. 63.46% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on CTAS shares. Citigroup reduced their target price on Cintas from $181.00 to $160.00 and set a "sell" rating on the stock in a research note on Tuesday, March 31st. Robert W. Baird upgraded Cintas from a "neutral" rating to an "outperform" rating and set a $250.00 price target on the stock in a research report on Wednesday, March 11th. Bank of America assumed coverage on Cintas in a research report on Tuesday, February 17th. They set a "neutral" rating and a $215.00 price target on the stock. Wells Fargo & Company upgraded Cintas from a "cautious" rating to an "overweight" rating and lifted their price target for the company from $205.00 to $245.00 in a research report on Wednesday, January 14th. Finally, Weiss Ratings lowered Cintas from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, April 1st. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $215.17.

Insider Transactions at Cintas

In other Cintas news, Director Ronald W. Tysoe sold 4,666 shares of Cintas stock in a transaction on Monday, April 20th. The stock was sold at an average price of $178.87, for a total transaction of $834,607.42. Following the completion of the transaction, the director owned 22,448 shares in the company, valued at approximately $4,015,273.76. The trade was a 17.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 14.90% of the company's stock.

Cintas Trading Down 2.9%

NASDAQ CTAS opened at $169.61 on Friday. The company has a quick ratio of 1.74, a current ratio of 1.98 and a debt-to-equity ratio of 0.51. Cintas Corporation has a twelve month low of $165.60 and a twelve month high of $229.24. The firm has a market capitalization of $67.86 billion, a PE ratio of 47.91, a P/E/G ratio of 2.99 and a beta of 0.97. The stock's 50 day moving average is $183.59 and its 200 day moving average is $187.22.

Cintas (NASDAQ:CTAS - Get Free Report) last released its quarterly earnings results on Wednesday, March 25th. The business services provider reported $1.24 earnings per share for the quarter, meeting the consensus estimate of $1.24. Cintas had a return on equity of 41.47% and a net margin of 17.57%.The company had revenue of $2.84 billion for the quarter, compared to analyst estimates of $2.82 billion. During the same period in the previous year, the company posted $1.13 earnings per share. The firm's revenue was up 8.9% on a year-over-year basis. Research analysts forecast that Cintas Corporation will post 4.89 earnings per share for the current fiscal year.

Cintas Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Friday, May 15th will be paid a dividend of $0.45 per share. The ex-dividend date is Friday, May 15th. This represents a $1.80 dividend on an annualized basis and a yield of 1.1%. Cintas's payout ratio is presently 50.85%.

Cintas Company 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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