Royal Bank of Canada Lowers Stock Holdings in Cintas Corporation $CTAS

Key Points

• Royal Bank of Canada cut its Cintas holdings by 8.6% in the first quarter, selling 267,873 shares and retaining 2.86 million shares worth approximately $483.4 million. Institutional investors collectively own 63.46% of CTAS.
• Cintas reported quarterly revenue of $2.91 billion and earnings of $1.29 per share, exceeding analyst estimates, while revenue increased 8.9% year over year. The company issued fiscal 2027 EPS guidance of $5.36–$5.50.
• Cintas raised its quarterly dividend to $0.52 per share, equivalent to $2.08 annually and a 1.0% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $212.31.

Royal Bank of Canada reduced its holdings in shares of Cintas Corporation (NASDAQ:CTAS - Free Report) by 8.6% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 2,857,742 shares of the business services provider's stock after selling 267,873 shares during the period. Royal Bank of Canada owned about 0.71% of Cintas worth $483,360,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the stock. Nemes Rush Group LLC bought a new stake in Cintas in the fourth quarter valued at approximately $25,000. Swiss RE Ltd. purchased a new position in Cintas during the 4th quarter valued at about $25,000. Kemnay Advisory Services Inc. bought a new position in Cintas during the 4th quarter valued at approximately $26,000. Camelot Portfolios LLC purchased a new stake in Cintas in the 4th quarter worth approximately $26,000. Finally, Triumph Capital Management purchased a new stake in Cintas in the 3rd quarter worth approximately $29,000. 63.46% of the stock is currently owned by hedge funds and other institutional investors.

Cintas Price Performance

CTAS stock opened at $214.90 on Wednesday. The firm has a market capitalization of $85.98 billion, a P/E ratio of 57.46, a price-to-earnings-growth ratio of 3.41 and a beta of 0.94. Cintas Corporation has a 52 week low of $161.16 and a 52 week high of $226.75. The company has a fifty day simple moving average of $180.88 and a two-hundred day simple moving average of $183.70. The company has a quick ratio of 1.27, a current ratio of 1.43 and a debt-to-equity ratio of 0.28.

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

Cintas Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Friday, August 14th will be issued a dividend of $0.52 per share. This is a positive change from Cintas's previous quarterly dividend of $0.45. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.08 annualized dividend and a dividend yield of 1.0%. Cintas's payout ratio is presently 48.13%.

Analyst Ratings Changes

Several brokerages have commented on CTAS. Truist Financial lowered their price objective on shares of Cintas from $255.00 to $225.00 and set a "buy" rating for the company in a report on Monday, June 15th. Argus upgraded shares of Cintas to a "strong-buy" rating in a research note on Friday, July 17th. Bank of America upgraded Cintas from a "neutral" rating to a "buy" rating and lifted their price objective for the stock from $200.00 to $230.00 in a report on Thursday, July 16th. Citigroup reduced their price target on shares of Cintas from $181.00 to $160.00 and set a "sell" rating for the company in a research note on Tuesday, March 31st. Finally, The Goldman Sachs Group restated a "buy" rating and issued a $231.00 target price on shares of Cintas in a report on Wednesday, July 15th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $212.31.

About Cintas

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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