Red Cedar Investment Management LLC Acquires New Stake in Cintas Corporation $CTAS

Key Points

• Red Cedar Investment Management initiated a Cintas position in the third quarter, buying 5,187 shares valued at approximately $1.01 million. Institutional investors and hedge funds collectively own 63.46% of the stock.
• Analysts give Cintas a consensus “Moderate Buy” rating, with an average price target of $218.62; coverage includes 10 Buy, six Hold, and one Sell rating.
• Cintas beat quarterly expectations with earnings of $1.39 per share and revenue of $3.01 billion, up 10.9% year over year. The company also announced a quarterly dividend of $0.52 per share.

Red Cedar Investment Management LLC bought a new stake in Cintas Corporation (NASDAQ:CTAS - Free Report) in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 5,187 shares of the business services provider's stock, valued at approximately $1,012,000.

Other institutional investors and hedge funds have also modified their holdings of the company. BlackRock Inc. acquired a new stake in Cintas during the 2nd quarter valued at $4,520,425,000. Bank of New York Mellon Corp bought a new position in Cintas in the 2nd quarter valued at $644,334,000. Amundi boosted its stake in Cintas by 6.3% in the first quarter. Amundi now owns 2,402,362 shares of the business services provider's stock worth $406,336,000 after purchasing an additional 142,576 shares in the last quarter. Legal & General Group Plc acquired a new position in Cintas in the second quarter worth $386,159,000. Finally, Arrowstreet Capital Limited Partnership grew its holdings in shares of Cintas by 34.8% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,040,757 shares of the business services provider's stock worth $345,174,000 after purchasing an additional 526,299 shares during the last quarter. 63.46% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on CTAS. The Goldman Sachs Group raised their target price on Cintas from $231.00 to $239.00 and gave the company a "buy" rating in a research note on Thursday, September 24th. Rothschild & Co Redburn lifted their price target on Cintas from $184.00 to $198.00 and gave the company a "neutral" rating in a report on Tuesday, July 28th. UBS Group reiterated a "buy" rating and set a $235.00 price target (up from $230.00) on shares of Cintas in a research report on Thursday, September 24th. Weiss Ratings lowered shares of Cintas from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, October 23rd. Finally, Citigroup raised their price objective on shares of Cintas from $180.00 to $181.00 and gave the company a "sell" rating in a research report on Wednesday, September 30th. Ten research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Cintas has a consensus rating of "Moderate Buy" and a consensus price target of $218.62.

Cintas Stock Up 0.4%

NASDAQ:CTAS opened at $223.16 on Tuesday. Cintas Corporation has a 12-month low of $161.16 and a 12-month high of $233.46. The company has a quick ratio of 1.29, a current ratio of 1.45 and a debt-to-equity ratio of 0.27. The firm has a market capitalization of $88.61 billion, a P/E ratio of 44.02, a P/E/G ratio of 3.63 and a beta of 0.86. The stock's fifty day simple moving average is $206.84 and its 200-day simple moving average is $191.42.

Cintas (NASDAQ:CTAS - Get Free Report) last announced its quarterly earnings data on Wednesday, September 23rd. The business services provider reported $1.39 EPS for the quarter, topping analysts' consensus estimates of $1.35 by $0.04. The business had revenue of $3.01 billion during the quarter, compared to analysts' expectations of $2.98 billion. Cintas had a return on equity of 42.57% and a net margin of 17.82%. The firm's quarterly revenue was up 10.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.20 earnings per share. Cintas has set its FY 2027 guidance at 5.450-5.540 EPS. Equities research analysts expect that Cintas Corporation will post 5.53 earnings per share for the current year.

Cintas Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Friday, November 13th will be issued a dividend of $0.52 per share. The ex-dividend date is Friday, November 13th. This represents a $2.08 dividend on an annualized basis and a yield of 0.9%. Cintas's dividend payout ratio (DPR) is 41.03%.

Cintas Profile

Cintas Corporation provides workplace products and services to businesses, primarily in North America. Its offerings include uniform rental and sales, workwear, and related services such as laundering and maintaining uniforms.

The company also supplies facility services, including restroom and floor products, and provides first aid and safety products and services. Its fire protection business offers services such as inspecting and maintaining fire extinguishers and other safety equipment.

Cintas traces its roots to Acme Industrial Laundry, a family business established in 1929.

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