Sumitomo Life Insurance Co. Buys New Shares in Cintas Corporation $CTAS

Key Points

• Sumitomo Life Insurance bought 9,611 Cintas shares worth approximately $1.64 million, while institutional investors collectively own 63.46% of CTAS.
• Cintas exceeded quarterly expectations, reporting $1.29 in EPS and $2.91 billion in revenue, with revenue rising 8.9% year over year. Analysts maintain a consensus “Moderate Buy” rating and a $212.31 target price.
• The company raised its quarterly dividend to $0.52 per share, representing an annualized payout of $2.08 and a 1.0% yield.

Sumitomo Life Insurance Co. bought a new position in shares of 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 institutional investor bought 9,611 shares of the business services provider's stock, valued at approximately $1,635,000.

A number of other hedge funds have also recently bought and sold shares of CTAS. BlackRock Inc. acquired a new position in shares of Cintas during the 2nd quarter worth approximately $4,520,425,000. State Street Corp grew its stake in shares of Cintas by 1.4% in the fourth quarter. State Street Corp now owns 15,311,491 shares of the business services provider's stock valued at $2,879,632,000 after buying an additional 210,477 shares in the last quarter. Geode Capital Management LLC increased its holdings in Cintas by 1.1% during the fourth quarter. Geode Capital Management LLC now owns 9,293,485 shares of the business services provider's stock worth $1,746,453,000 after buying an additional 97,220 shares during the last quarter. Norges Bank bought a new stake in Cintas during the fourth quarter worth $923,672,000. Finally, Morgan Stanley increased its stake in shares of Cintas by 0.8% during the 4th quarter. Morgan Stanley now owns 4,393,116 shares of the business services provider's stock worth $826,214,000 after purchasing an additional 36,666 shares during the last quarter. 63.46% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on CTAS. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $206.00 target price on shares of Cintas in a research note on Thursday, July 16th. The Goldman Sachs Group restated a "buy" rating and issued a $231.00 price objective on shares of Cintas in a research note on Wednesday, July 15th. Argus raised Cintas to a "strong-buy" rating in a research report on Friday, July 17th. Bank of America upgraded Cintas from a "neutral" rating to a "buy" rating and lifted their target price for the stock from $200.00 to $230.00 in a research note on Thursday, July 16th. Finally, UBS Group reissued a "buy" rating and set a $230.00 target price (up from $228.00) on shares of Cintas in a report on Thursday, July 16th. One research 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 stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $212.31.

Cintas Stock Performance

NASDAQ CTAS opened at $203.79 on Friday. The firm has a 50-day moving average of $191.16 and a 200-day moving average of $185.08. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.27 and a current ratio of 1.43. The stock has a market cap of $81.55 billion, a PE ratio of 54.49, a P/E/G ratio of 3.29 and a beta of 0.92. Cintas Corporation has a 52-week low of $161.16 and a 52-week high of $219.16.

Cintas (NASDAQ:CTAS - Get Free Report) last announced its earnings results on Wednesday, July 15th. The business services provider reported $1.29 EPS for the quarter, topping 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 business 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 EPS. Cintas's revenue was up 8.9% compared to the same quarter last year. Cintas has set its FY 2027 guidance at 5.360-5.500 EPS. On average, sell-side analysts anticipate that Cintas Corporation will post 5.49 EPS for the current year.

Cintas Increases Dividend

The company also recently disclosed 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 boost from Cintas's previous quarterly dividend of $0.45. This represents a $2.08 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Friday, August 14th. Cintas's dividend payout ratio is presently 55.61%.

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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