Wellington Management Group LLP Lowers Holdings in Cintas Corporation $CTAS

Key Points

• Wellington Management Group LLP has reduced its stake in Cintas Corporation by 1.7%, holding a position worth approximately $144.25 million as of the end of the most recent quarter.
• Recent adjustments in analysts' price targets have generally been positive, with Goldman Sachs increasing its target from $233 to $257 and maintaining a "buy" rating.
• Cintas announced a quarterly dividend increase from $0.39 to $0.45 per share, representing an annualized yield of 0.8%.

Wellington Management Group LLP cut its stake in shares of Cintas Corporation (NASDAQ:CTAS - Free Report) by 1.7% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 701,831 shares of the business services provider's stock after selling 11,999 shares during the quarter. Wellington Management Group LLP owned about 0.17% of Cintas worth $144,247,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Stone House Investment Management LLC bought a new position in shares of Cintas during the first quarter valued at $41,000. E Fund Management Hong Kong Co. Ltd. increased its holdings in shares of Cintas by 646.4% during the first quarter. E Fund Management Hong Kong Co. Ltd. now owns 209 shares of the business services provider's stock valued at $43,000 after acquiring an additional 181 shares in the last quarter. Washington Trust Advisors Inc. bought a new position in shares of Cintas during the first quarter valued at $46,000. Greykasell Wealth Strategies Inc. purchased a new stake in shares of Cintas during the first quarter valued at $46,000. Finally, Wellington Shields & Co. LLC purchased a new stake in shares of Cintas during the first quarter valued at $51,000. 63.46% of the stock is currently owned by institutional investors.

Insider Activity

In other news, CEO Todd M. Schneider sold 17,301 shares of Cintas stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $220.90, for a total transaction of $3,821,790.90. Following the transaction, the chief executive officer directly owned 622,712 shares of the company's stock, valued at $137,557,080.80. The trade was a 2.70% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Ronald W. Tysoe sold 5,084 shares of Cintas stock in a transaction dated Wednesday, July 30th. The shares were sold at an average price of $223.47, for a total value of $1,136,121.48. Following the transaction, the director directly owned 21,945 shares in the company, valued at approximately $4,904,049.15. The trade was a 18.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 15.00% of the company's stock.

Cintas Stock Performance

NASDAQ:CTAS traded down $0.52 on Friday, hitting $215.59. The stock had a trading volume of 1,448,772 shares, compared to its average volume of 1,356,395. The stock has a market cap of $86.88 billion, a price-to-earnings ratio of 48.89, a price-to-earnings-growth ratio of 3.72 and a beta of 1.03. The company has a quick ratio of 1.82, a current ratio of 2.09 and a debt-to-equity ratio of 0.52. The business's 50-day simple moving average is $220.16 and its two-hundred day simple moving average is $212.63. Cintas Corporation has a 52-week low of $180.78 and a 52-week high of $229.24.

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

Cintas Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Friday, August 15th will be given a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Friday, August 15th. This is an increase from Cintas's previous quarterly dividend of $0.39. Cintas's payout ratio is presently 40.82%.

Analyst Ratings Changes

Several equities research analysts recently commented on CTAS shares. Wells Fargo & Company raised Cintas from an "underweight" rating to an "equal weight" rating and increased their price objective for the company from $196.00 to $221.00 in a research report on Tuesday, July 1st. UBS Group increased their price objective on Cintas from $240.00 to $255.00 and gave the company a "buy" rating in a research report on Friday, July 18th. Morgan Stanley increased their price objective on Cintas from $213.00 to $220.00 and gave the company an "equal weight" rating in a research report on Friday, July 18th. Redburn Atlantic cut Cintas from a "neutral" rating to a "sell" rating and set a $171.00 price target on the stock. in a report on Thursday, May 1st. Finally, Robert W. Baird increased their price target on Cintas from $227.00 to $230.00 and gave the company a "neutral" rating in a report on Friday, July 18th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, five have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Cintas presently has an average rating of "Hold" and an average target price of $224.54.

About Cintas

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.