United Services Automobile Association Makes New Investment in Cintas Corporation $CTAS

Key Points

• United Services Automobile Association has acquired 8,034 shares of Cintas Corporation valued at approximately $1,633,000 during the 1st quarter, indicating growing institutional interest in the company.
• Cintas announced an increase in its quarterly dividend from $0.39 to $0.45 per share, reflecting a commitment to returning value to shareholders.
• Despite the recent insider trading activity, including a significant stock sale by Director Ronald W. Tysoe, Cintas received analyst upgrades, with target prices ranging from $230.00 to $257.00.

United Services Automobile Association acquired a new position in shares of Cintas Corporation (NASDAQ:CTAS - Free Report) during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The fund acquired 8,034 shares of the business services provider's stock, valued at approximately $1,633,000.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in CTAS. WPG Advisers LLC purchased a new position in Cintas during the 1st quarter worth approximately $27,000. Saudi Central Bank acquired a new stake in shares of Cintas during the 1st quarter valued at $29,000. Stone House Investment Management LLC acquired a new stake in shares of Cintas during the 1st quarter valued at $41,000. Resources Management Corp CT ADV acquired a new stake in shares of Cintas during the 1st quarter valued at $41,000. Finally, E Fund Management Hong Kong Co. Ltd. boosted its stake in shares of Cintas by 646.4% during the 1st quarter. E Fund Management Hong Kong Co. Ltd. now owns 209 shares of the business services provider's stock valued at $43,000 after buying an additional 181 shares during the period. 63.46% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Cintas

In other Cintas news, Director Ronald W. Tysoe sold 5,084 shares of the company's stock in a transaction dated Wednesday, July 30th. The shares were sold at an average price of $223.47, for a total transaction of $1,136,121.48. Following the sale, the director directly owned 21,945 shares of the company's stock, valued at approximately $4,904,049.15. This represents a 18.81% 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 link. Also, Director Martin Mucci acquired 1,200 shares of the firm's stock in a transaction on Monday, July 21st. The shares were purchased at an average cost of $222.55 per share, for a total transaction of $267,060.00. Following the completion of the purchase, the director directly owned 2,621 shares of the company's stock, valued at approximately $583,303.55. The trade was a 84.45% increase in their position. The disclosure for this purchase can be found here. 15.00% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the stock. Robert W. Baird lifted their target price on shares of Cintas from $227.00 to $230.00 and gave the company a "neutral" rating in a research note on Friday, July 18th. The Goldman Sachs Group lifted their target price on shares of Cintas from $233.00 to $257.00 and gave the company a "buy" rating in a research note on Wednesday, July 2nd. Royal Bank Of Canada reissued a "sector perform" rating and set a $240.00 target price on shares of Cintas in a research note on Thursday, August 21st. JPMorgan Chase & Co. assumed coverage on shares of Cintas in a research note on Monday, July 14th. They issued an "overweight" rating and a $239.00 price objective for the company. Finally, Wells Fargo & Company raised shares of Cintas from an "underweight" rating to an "equal weight" rating and lifted their price objective for the company from $196.00 to $221.00 in a research note on Tuesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $224.54.

Cintas Stock Down 1.1%

Cintas stock opened at $204.50 on Monday. The firm has a market cap of $82.41 billion, a price-to-earnings ratio of 46.37, a P/E/G ratio of 3.53 and a beta of 1.01. The company has a debt-to-equity ratio of 0.52, a current ratio of 2.09 and a quick ratio of 1.82. Cintas Corporation has a fifty-two week low of $180.78 and a fifty-two week high of $229.24. The firm has a fifty day moving average price of $217.78 and a two-hundred day moving average price of $212.97.

Cintas (NASDAQ:CTAS - Get Free Report) last released its earnings results on Thursday, July 17th. The business services provider reported $1.09 earnings per share for the quarter, topping analysts' consensus estimates of $1.07 by $0.02. The firm had revenue of $2.67 billion during the quarter, compared to analyst estimates of $2.63 billion. Cintas had a net margin of 17.53% and a return on equity of 41.21%. The business's revenue was up 8.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $3.99 EPS. Cintas has set its FY 2026 guidance at 4.710-4.85 EPS. As a group, analysts forecast that Cintas Corporation will post 4.31 earnings per share for the current year.

Cintas Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Friday, August 15th will be paid a $0.45 dividend. The ex-dividend date of this dividend is Friday, August 15th. This is an increase from Cintas's previous quarterly dividend of $0.39. This represents a $1.80 dividend on an annualized basis and a yield of 0.9%. Cintas's payout ratio is presently 40.82%.

Cintas Profile

Cintas Corporation engages in the provision of corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms.

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